How to become an accountant

Discover the accounting qualifications that lead to chartered status and how to progress your career in this highly competitive profession

The earning potential for a recently qualified chartered accountant is also a strong reason to commit to this career. The ICAEW has revealed that those awarded chartered accountant status through their professional qualification can expect an average annual wage of £51,000 within two years of completing their accountancy training and passing their final exams.

In terms of necessary accounting skills, you'll need more than simply being good at maths. Analytical, interpretation and adaptability are important attributes required to communicate accurate financial information, set realistic targets and drive business growth.

1. Study the right accounting qualifications

The AAT qualification is typically the minimum level expected of an accountant, but to become a chartered accountant, you'll need to progress to the ACCA, ACA or CIMA qualifications.

There are no set entry requirements for AAT courses at Level 2 (intermediate), but you'll require a good standard of English and maths. Completing GCSEs in these subjects is advised, especially if you're looking to progress to a professional qualification further down the line. BTEC certificates are also typically accepted by training providers. Read more about college courses.

While many accountants hold a university degree, it's often desirable rather than essential. Even if it is a prerequisite for a role, the degree can usually be in any subject.

So, while maths and economics at A-level followed by an accounting and finance degree may be advantageous, you can still get the accountancy qualifications and skills you need, as professional bodies provide courses for students and workers at all levels.

Indeed, with no upper age limit and these distance learning courses targeted at career changers, it's possible to become an accountant at ages 30, 40 or 50. Get the lowdown on adult education.

The main accounting qualifications

Here are the six most popular accountant qualifications in the UK from the industry's leading professional bodies:

• AAT (Association of Accounting Technicians) - made up of four qualifications across three levels (Levels 2-4), AAT accounting courses combine industry knowledge and practical work skills. It takes 12 to 18 months to complete the Level 4 qualification and qualify for senior finance roles.
• ACCA (Association of Chartered Certified Accountants) - ACCA qualifications are comprised of two levels: Fundamentals and Professionals. The modules cover a variety of topics from corporate and business law to audit and assurance. The ACCA can be achieved within four years but there's a ten-year limit.
• AIA (The Association of International Accountants) - by completing the AIA professional qualification, their highest award, you can achieve qualified accountant status and become a member of this global organisation. The first two levels take up to 12 months with the final stage taking 12 to 18 months.
• ICAEW (Institute of Chartered Accountants in England and Wales) - also referred to as the ACA, the ICAEW chartered accountant qualification consists of 450 days of practical work experience and the completion of 15 exam modules. The ACA involves three to five years of training.
• CIMA (Chartered Institute of Management Accountants) - for a career in management accounting, you can study towards the widely recognised CIMA professional qualification and CGMA (Chartered Global Management Accountant) designation, which requires you to have already achieved the postgraduate-level CIMA Certificate in Business Accounting (Cert BA). While the CGMA can be earned within four years, you'll also require three years of practical experience.
• CIPFA (Chartered Institute of Public Finance and Accountancy) - the CIPFA Professional Accountancy Qualification (PAQ) provides expert public financial management training to become a chartered public finance accountant with a clear pathway to the CPFA designation. You'll usually spend three-and-a-half years studying for this award.

Many accountancy firms accept qualifications from any board, but if you have a set career path in mind, it's worth looking into the preferred accounting designation.

For example, to become a chartered accountant through ACCA, you must have studied for the qualification and have three years' work experience in a relevant role. It usually takes three to four years in total to become fully qualified.

As you can see from the other professional accounting qualifications listed above, three to five years is typical for becoming qualified as an accountant.

If you're wondering how to become a chartered accountant without a degree, you can begin the ACCA route at the earliest stage with three GCSEs (including English and Maths) and two A-levels. However, already holding a degree or Masters in any subject may make you exempt from some of the exams.

See accounting courses for further information on each course provider.

2. Choose your accounting specialism

Accounting careers can be split into two key areas: management accounting and financial accounting. Within these divisions are further specialist fields such as budget and financial analysis and working as a controller.

The difference between management accounting and financial accounting is that the former provides information to people within a company, while financial accounting provides information to those outside of it, such as shareholders.

Unlike financial accounting, management accounting isn't required by law and only covers particular products. On the other hand, financial accounting covers the entire organisation.

Read more about the role of a chartered management accountant and the work they do.

Most graduates will enter accounting through financial accountancy, which can provide a variety of career prospects such as:

• audit
• business recovery and insolvency
• corporate finance
• forensic accounting
• tax.

For each accounting specialism, graduates also have the choice of whether to work in the public or private sector.

3. Secure a job or accountancy apprenticeship

Despite the importance of qualifications, the value of real-life accountancy work cannot be underestimated.

As an accountant, you'll be able to find work in any sector (public and private) and with large companies and small and medium-sized enterprises (SMEs).

Over time, you'll be able to focus on your preferred working environment. Most vacancies are available directly from employers, so look out for roles you're eligible to apply for.

You'll also find that finance graduate schemes are often structured with the opportunity to attain an accounting qualification such as the ACA or CGMA as part of the programme.

However, accounting apprenticeships, such as those run by the AAT, are a viable alternative to university and provide a fast-track to chartered status with the main professional bodies such as the ICAEW and ACCA.

When you secure an apprenticeship, you can gain practical skills while earning a wage and receiving the same benefits (including a holiday allowance) as other employees at the company.

Search the latest graduate accountant roles.

4. Get relevant accounting work experience

Another way to enter the industry is through a work placement or voluntary or part-time role. Even work shadowing for a day can give you a feel for the accounting activities you might be involved in.

As an alternative to working in an office, some accountancy firms now offer virtual work experience opportunities.

Formal summer accounting internships with larger financial institutions, such as PwC or Deloitte, can be highly competitive for students and are usually oversubscribed.

Don't be concerned though as any type of finance work experience will boost your chances of landing a full-time job in an accounting role.

Check individual websites of companies you'd like to work for to see if they have any current vacancies. You may be able to land a work placement by sending speculative applications to local SMEs in the financial sector.

Read more about finance internships as well as internships in general.

If you're at university, consider extra-curricular activities such as volunteering as the treasurer for a club or society, or look for a part-time job to help you develop skills in this area.

Depending on the firm's size, you may get to work on real projects and manage your workload as you acquire key accounting skills. Training is usually provided to those engaging in work experience and you'll get to make industry contacts that can aid your future accountancy career.

As many employers will only support trainee accountants in studying for their accounting qualifications if they've previously undertaken relevant work experience, this will be a valuable addition to your CV and help you on your way to becoming a qualified accountant.

Explore how to go about securing work experience.

Find out more

• Consider the full range of graduate finance jobs.
• Study other finance qualifications.
• Get an overview of the UK's financial sector.