What is a chartered accountant & how does it differ from an accountant?

Have you ever wondered what a Chartered Accountant really does and how it compares to a regular accountant? If you're a business owner or entrepreneur in Canada, this accounting designation could have a significant impact on your company's tax and financial health. Today, more than 200,000 professionals across the country proudly hold the Chartered Professional Accountant (CPA) designation, the single credential that brings all previous accounting designations under one trusted standard.

But what does it take to become a Chartered Professional Accountant? How does it differ from being just an accountant? And most importantly, who should you trust with your company's financial strategy and tax planning? In this article, Frédéric Roy-Gobeil, Chartered Professional Accountant and Tax Specialist, explains this regulated profession in Quebec and across Canada to help you make the best decision for your future.

What is a Chartered Accountant: definition and role

A chartered accountant, now formally recognized as a Chartered Professional Accountant in Canada, is a financial professional who has successfully completed a rigorous education and certification process. This profession is regulated across the country to protect the public interest, ensure a high level of competency, and maintain trust in the financial system.

To practice this profession and obtain the chartered accountant designation like Frédéric Roy-Gobeil, candidates must meet strict education requirements and follow a structured training program. It begins with a recognized undergraduate degree or university degree, followed by enrollment in the CPA Professional Education Program (CPA PEP) — which combines in-class sessions and self-study components. Candidates must also complete a period of practical experience under supervision to demonstrate their skills in real-world business scenarios. These are the official steps to become a chartered accountant in Canada. In Quebec, this path is overseen by the provincial accounting order, which ensures ethics, continuing education, and compliance with practical experience requirements.

When you choose a CPA for your business, you're partnering with someone who does more than crunch numbers. They help you make informed decisions, improve the accuracy of your financial reporting, and align your tax strategy with your business goals, all while maintaining the highest professional standards.

Chartered Professional Accountant and Chartered Accountant: what's the difference?

“All CPAs are accountants, but not all accountants are CPAs.”

The differences between CPA and accountant may seem subtle, but they reflect an important distinction, especially if you're a business owner making decisions that affect your company's finances.

An accountant, broadly defined, can be anyone who offers business and accounting services. While many have solid work experience and skills, the title itself is not protected by law. These individuals are not necessarily members of a professional order, nor are they subject to the ethical obligations or professional oversight required by the Quebec Professional Code.

A Chartered Professional Accountant is a regulated professional. They must be licensed by the Quebec CPA Order, meet ongoing qualification standards, and adhere to a strict code of ethics, continuous education, and public responsibility. In Quebec, the terms chartered accountant and CPA now refer to the same accountant designation, one that ensures high standards of trust, credibility, and accountability.

The Chartered Accountant: a recognized expert before the unification of the orders

Prior to 2012, the accounting profession in Quebec was divided into three distinct designations: Chartered Accountants (CAs), Certified General Accountants (CGAs), and Certified Management Accountants (CMAs). Each path had its own education requirements, licensing process, and area of specialization.

Of these, the CA designation was often considered the most prestigious. Chartered accountants were the only professionals authorized to perform assurance engagements and certify financial statements within the public accounting framework. These responsibilities required not only advanced technical knowledge, but also a deep level of trust from both businesses and regulators.

But their role went far beyond auditing. With strong expertise in financial accounting and corporate taxation, CAs were highly valued as strategic advisors. They helped executives make key business decisions, advised on operational restructuring, and guided long-term planning, from securing financing to preparing for succession.

Their reputation was bolstered by their membership in respected institutions such as the Canadian Institute of Chartered Accountants (CICA) and by the legal framework established by the Chartered Accountants Act. This framework emphasized acting in the public interest, maintaining integrity, and meeting practical experience requirements. For clients, working with a CA meant working with a regulated professional whose skills, education and accountability were never in question.

Unification of the accounting orders: birth of the Chartered Professional Accountant (CPA) designation

In May 2012, a major reform reshaped the accounting landscape in Quebec. The province's three professional designations (CA, CGA and CMA) were merged into a single designation: Chartered Professional Accountant (CPA). The goal was clear: to standardize educational requirements, improve professional mobility between provinces, and facilitate public recognition of qualified professionals. It also brought Quebec's accounting standards in line with international practices and made the CPA designation more widely recognized internationally.

Today, becoming a Chartered Professional Accountant in Quebec is a rigorous process. Each candidate must complete the following steps:

• Complete a recognized undergraduate degree.
• Enroll in the Professional Education Program (PEP).
• Complete a supervised internship in a company or firm.
• Successfully pass the CPA exam known as the Common Final Examination (CFE).

This process is overseen by the Quebec professional order, which ensures that all designated accountants meet consistent education standards, act in the public interest, and follow a strict code of ethics. Maintaining this status also involves ongoing professional development to stay current and accountable throughout one’s career.

Since unification, older designations such as CA or CGA have been officially retired. Yet for many professionals and their clients, the legacy of the chartered accountant remains strong. Today, that trust continues under the CPA banner, a symbol of expertise, regulation, and reliability within Canada’s accounting sector.

Why use a Chartered Professional Accountant?

Hiring a Chartered Professional Accountant isn’t just about outsourcing your business bookkeeping. It’s about partnering with a financial professional who understands the full picture, from taxes to strategy, and who’s trained to protect your business’s best interests.

First, a CPA helps you stay compliant with tax laws and financial regulations. They ensure that your corporate income tax returns, including T2, CO-17, and GST/QST, are filed properly and on time. This reduces the risk of penalties, missed credits, or unwanted surprises from the Canada Revenue Agency (CRA) or Revenu Quebec.

But the value of a CPA goes far beyond compliance. With their expertise in corporate taxation and financial accounting, they can help you:

• Structure your business to reduce your tax burden.
• Maximize tax credits and deductions available to your business.
• Manage cash flow and assess financing options.
• Build reliable financial forecasts to guide decision-making.
• Optimize your compensation strategy (salary vs. dividends).

In other words, your CPA is more than a bookkeeper. They're a strategic advisor who helps you see the road ahead and avoid costly missteps. Whether you're just starting out or scaling up, having a CPA on your side means having someone who speaks the language of business and can guide you with confidence.

Bookkeeping services

Bookkeeping is the foundation of sound accounting. It involves recording all business transactions in a clear, structured, and consistent manner and is a critical part of public accounting that supports the accuracy of all financial reports.

A chartered accountant can provide monthly, quarterly, or annual bookkeeping services, depending on your company's size, activity level, and regulatory obligations. This is especially true for entrepreneurs managing growth or navigating corporate tax requirements in Canada.

This service is essential to:

• Get a clear and accurate view of your business finances.
• Simplify the preparation of financial statements and tax returns.
• Make informed decisions based on reliable information.

Reliable bookkeeping also meets the competency expectations outlined in CPA Canada's educational requirements and sets the stage for more advanced support, such as audit and assurance or tax planning. A well-organized general ledger is like a strong foundation: everything else in your financial operations is built on top of it.

Preparing and analyzing financial statements

Financial statements are the X-ray of your business. They give you a clear picture of your company's financial health, from profitability and cash flow to liabilities and assets. For business owners, understanding these reports is key to making smart, timely decisions.

A CPA doesn't just prepare financial reports. They analyze the data with you, explain what the numbers really mean, and help you make fact-based adjustments to your strategy. This collaborative approach increases your financial literacy and supports more informed business planning.

In addition to helping you measure performance over time, these documents are essential for securing loans, reassuring investors, and complying with federal and state regulations. They also demonstrate the credibility of your company's financial accounting to third parties.

Tax preparation and planning

Filing your corporate tax return isn't just about filing paperwork. It's about understanding complex tax laws, applying them to your specific business situation, and making sure your company pays exactly what it owes and not a dollar more.

A Chartered Professional Accountant knows what a T2 corporate income tax return is and what a CO-17 return is in Quebec, as well as all provincial and federal tax requirements. They can help you navigate deadlines, tax credits, GST/QST returns and installment payments to ensure you stay compliant and avoid penalties.

But tax preparation is just one part of the equation. A financial professional's true strength lies in tax planning - looking ahead to reduce your company's tax burden through strategic decision-making. This includes timing expenses, choosing the right compensation strategy, or reviewing your corporate tax structure to keep more of your profits.

Audit assistance

No business owner wants to receive an audit letter from the Canada Revenue Agency (CRA) or Revenu Québec. But when it happens, it's critical to have the support of someone who understands both the process and how to defend your interests.

A Chartered Professional Accountant acts as your trusted representative throughout the audit. They'll help you prepare the necessary documentation, explain the reasoning behind your financial decisions, and communicate directly with the IRS, so you don't have to face it alone.

But their role doesn't end there. With strong communication skills and a deep understanding of tax law, your accountant knows exactly what the auditors are looking for. They can identify risk areas, guide you through the audit step-by-step, and make sure your rights are protected every step of the way.

Other services offered by a Chartered Accountant

A CPA does much more than prepare tax returns or balance your books. These professionals are trained to provide advice that touches every aspect of your business-especially if you're planning for long-term growth or navigating a period of change.

Their broad range of skills and training make them invaluable in making critical business decisions. Whether you're planning to scale, restructure, or pivot, a CPA can step in to provide clarity and strategic guidance tailored to your situation.

Depending on your needs, your accountant can help you with:

• Budgeting and financial forecasting
• Business formation and restructuring
• Cash flow management and funding strategies
• Compensation planning guidance (salary vs. dividends)
• Business valuation and succession planning

These services are especially useful during important transitions - such as launching a new product, expanding into a new market, filing taxes after a complex year, or preparing your business for sale.

T2inc.ca – Your strategic ally for stress-free accounting and taxation

Running a business shouldn't feel like flying blind. And yet, too many business owners navigate changing tax rules, high-stakes decisions and unforgiving deadlines without the right guidance. That's why T2inc.ca exists.

Our mission? To make your life easier by connecting you with accountants and tax professionals who truly understand the realities of doing business in Canada. Thanks to our extensive network of accounting partners, you benefit from professional support in managing your bookkeeping, financial reporting and compliance - all while you focus on what you do best: growing your business.

Where we really excel is in our corporate tax filing services. Whether your business is active or inactive, whether you need to file a T2 or a CO-17, our tax accountants provide fast, accurate, and affordable services with no hidden fees. We help you file taxes on time, stay compliant, and avoid costly surprises.