Accountancy terms explained
Below is a list of terms found in the ICAEW Directory of Firms that covers the type of personal finance work a chartered accountancy firm may provide advice on. Terms are listed alphabetically. To browse the glossary choose a letter from A to Z below.
A B C D E F I L M N O P S T U V
A
Administration
A rescue procedure under which a licensed insolvency practitioner is appointed to a company, which either is, or seems likely to become, unable to pay its debts. (See also Corporate Recovery)
Assurance services
Professional accountants perform independently designed tests on information management of an entity (normally the client) and give a conclusion on aspects such as its accuracy and presentation. Information may be financial or other types such as internal control and sustainability. Statutory audit is a type of assurance service on statutory accounts. Chartered accountants also provide an ICAEW Assurance Service. For more information on other types of assurance services, go to www.icaew.com/assurance
B
Bankruptcies
Dealing with personal insolvency.
Business plans
Help with developing and writing plans for your business, together with forecasts of profit and cash flow, often with the purpose of securing finance for a business.
Business start-up
The compliance, structural, financial and logistical procedures needed to convert a business proposal into a viable operating business.
C
Capital gains tax
The taxation of gains or losses arising from the disposal of personal assets.
Cash flow management
The management and analysis of a company's cash flows. Careful cash flow management allows a company to estimate the amount of cash that it will have on hand at any one time, project trends in cash inflow and cash outflow, and evaluate whether a shortfall or surplus in cash could potentially occur.
Custom duties
Tax paid on goods exported or imported and the reliefs available.
D
Data processing services
The provision of computerised reports, usually of an accounting nature, from basic information supplied by you, more frequently through outsourcing.
Debt counselling
On a personal level, how to control your spending and deal with the repayment
of mortgage and other arrears.
Divorce/matrimonial
Taxation and other aspects of divorce and marriage.
E
E-commerce
The buying and selling of products or services over electronic systems such as the Internet and other computer networks. It's generally considered to be the sales aspect of e-business and also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions.
Employee taxation
Tax paid by employees on income earned from their employment.
Estate planning and IHT
Planning the most effective and tax efficient way of passing on your wealth to future generations.
Expatriates and non-UK residents
The effect of UK and overseas taxation on UK nationals working overseas.
F
Financial planning and advice
Personal financial planning, personal and company pensions, investment management and tax and estate planning.
Flotations
Raising money through the Stock Exchange main market, Alternative Investment Market (AIM) or similar, and the relevant regulatory framework.
Foreign currency transactions
Trading in foreign currencies.
Foreign nationals and non-UK domiciled clients
The effect of UK taxation on non-UK residents.
Franchising
All aspects of franchising from both the franchisor and franchisee perspectives.
I
Independent Financial Advisers (IFA)
An IFA is a person authorised by the Financial Services Authority (FSA) to give independent financial advice on investments, savings personal insurance, pensions and saving for retirement, or mortgages.
Individual voluntary arrangement
For a licensed insolvency practitioner who can prepare, negotiate and administer a legally binding arrangement for you to repay your creditors over an extended period.
Information security
Keeping your systems and data secure from unauthorised access or misuse.
Insolvency
The inability to pay one's debts. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts. Business insolvency is defined in two different ways: Cash flow insolvency (Unable to pay debts as they fall due.). Balance sheet insolvency (Having negative net assets – in other words, liabilities exceed assets.)
Investment advice and/or portfolio management
An examination of the merits of different forms of investment, whether to retain an investment and, if FSA authorised, whether to make certain investments.
Investment Business Authorisation
This is one of the areas of accountancy work which are regulated by ICAEW. Under the Financial Services and Markets Act 2000, firms which wish to recommend specific investment business products have to be authorised to do so by the Financial Services Authority (FSA). ICAEW can license firms to provide a wide range of investment advice, including advice on private company shares and selling investments, and on general insurances where that advice arises out of or is complementary to another accountancy service. The directory indicates which form of authorisation a firm has.
L
Loan finance and leasing advice
Whether to borrow and buy an asset or lease it, together with sources of funds.
N
National Insurance advise
The effect of National Insurance contributions on salary and benefits.
P
PAYE
Help and advice on the Pay As You Earn (PAYE) system of tax collection.
Pensions and insurance advice
Identifying the most suitable pension or insurance arrangements for an individual wishing to establish a pension scheme.
Personal tax
All aspects of tax as it affects the individual, including self-assessment.
Practice Assurance
Practice Assurance applies to all ICAEW members who hold a practising certificate and who offer accountancy services to the public. These members are required to comply with four published, principles-based standards. ICAEW monitors member firms for compliance with the standards, other relevant regulations and the members’ Code of Ethics.
The ICAEW Directory of Firms also includes firms which are registered with us under the Practice Assurance scheme, but are not necessarily firms of chartered accountants. These firms are monitored under the Practice Assurance scheme.
Property
The impact of taxation on transactions involving land.
S
Self assessment advice
Among many other aspects, this includes record-keeping, tax returns and the systems for the payment of tax.
T
Taxation
All aspects of tax work for individuals, including preparing computations, dealing with HM Revenue & Customs (HMRC) and advising on taxation.
Tax Investigations
Negotiating with HM Revenue & Customs (HMRC) where they have opened an enquiry/investigation into a taxpayer’s affairs, for example on tax underpaid in previous years as a result of failing to provide adequate information about income to the tax authorities.
Tax planning
How to arrange transactions in the most tax-beneficial manner.
Trusteeship and executorships
Either acting as the named executor in a will or advising executors on the steps to be taken.
Trusts
How trusts are taxed and their use in tax planning.
V
Valuations
Providing guidance and expert opinions on the value of shares, unquoted businesses and other financial instruments.
