The Difference Between Financial Accountants and Chartered Accountants in Saudi Arabia

The Difference Between Financial Accountants and Chartered Accountants in Saudi Arabia

Accountants and auditors play a vital role in the world of finance and business, overseeing the financial affairs of companies and organizations. There are two main types of accountants in Saudi Arabia: financial accountants and chartered accountants.

Financial accountants record daily financial transactions. Their main function is to record daily entries up to the trial balance and the company's main financial statements. They also provide owners with any financial reports they need. They typically have a bachelor's degree in accounting and may also have some experience working in the field.

Chartered accountants, also known as certified public accountants (CPAs), are professional accountants who have met educational, practical experience, and examination requirements. In Saudi Arabia, for example, there are requirements for obtaining a CPA license. Chartered accountants are qualified to provide a wider range of services than financial accountants, such as auditing, accounting review, zakat and tax compliance, financial analysis, financial and tax consulting, and advisory services. They typically have a master's degree in accounting and have passed examinations to obtain a CPA license, as well as having a number of years of experience.

The following table summarizes the key differences between financial accountants and chartered accountants in Saudi Arabia:

Characteristic	Financial Accountant	Chartered Accountant
Educational qualifications	Bachelor's degree in accounting	Bachelor's degree in accounting + 3 years of experience + passing the examinations of the Saudi Society of Certified Public Accountants (SOCPA)
Work experience	Not required	At least 3 years of relevant experience required
Examination	Not required	Required + passing the examinations of the Saudi Society of Certified Public Accountants (SOCPA)
Services provided	Daily accounting tasks for the company	Auditing, tax planning, consulting, and other accounting services
Abbreviation	FA	CA

The Saudi Society of Certified Public Accountants (SOCPA) is the professional body that regulates the profession of chartered accountants in Saudi Arabia. The society sets the standards for chartered accountants, and it registers and grants licenses to chartered accountants in Saudi Arabia.

To become a chartered accountant in Saudi Arabia, you must:

• Complete a bachelor's degree in accounting from an accredited university.
• Have at least three years of relevant work experience.
• Pass the chartered accountant examinations of the Saudi Society of Certified Public Accountants.

Once you become a chartered accountant, you will be able to use the letters "Chartered accountant" after your name. This designation indicates that you have met the highest standards of professional competence and ethics.

*If you are interested in obtaining the chartered accountant designation, it is important to understand the differences between financial accountants and chartered accountants. If you want to pursue a career in accounting, auditing, tax planning, or consulting, you should become a chartered accountant. However, if you are interested in a career in the daily accounting tasks of a company, you can become a financial accountant.

In the end, the best way to determine what type of accountant you want to become is to consider your interests and goals. If you are interested in a challenging and rewarding career in accounting, becoming a chartered accountant is the right choice for you. However, if you are looking for a career that offers a good work-life balance and stability, becoming a financial accountant is a good option.

 

Ibrahim Al-sulmi Company offers a comprehensive range of accounting and consulting services, including accounting, auditing, financial and tax consulting, and handling tax and zakat issues. The company has a distinguished team with high capabilities and practical experience in dealing with all types of cases.