French professional accountants in business in the limelight

What is a professional accountant in business, whose status was recently created by the PACTE law? What is the difference with the professional accountant in practice? What's new? Finally, what interest for an organization to employ a professional accountant in business?

So many questions raised by Hugues Robert , journalist on DECIDEURS TV to which Eric Freudenreich , President of the French Association of professional accountants in business (referred hereafter as ECE), comes back.

Hugues Robert: Quite simply what is a professional accountant in business?

Eric Freudenreich: A professional accountant in business (PAIB) is a qualified accountant who is employed in France in companies, education or administration. The qualification in question is the Dipl?me d’expertise comptable (DEC) or its foreign equivalent. The DEC is the French terminal degree in accounting. It marks eight years of education. And that's a year longer than to become a lawyer and a year less than to become a general practitioner.

To be entitled to use the title of PAIB (i.e. its French equivalent Expert-comptable en entreprise), you must be registered on the Roll of the Order of certified accountants. And that's all new, since the PAIB were able to register for the first time ever in January this year.

H. R.: So, what is the difference between a professional accountant in business and a professional accountant in practice?

E. F.: So, it is indeed the same family, and in this family, there are common points and points that differentiate them. The three points in common are: expertise, tenacity and integrity. The expertise and tenacity come from the length of our academic studies. Integrity comes from being prepared for the regulated professions of Certified Public Accountant and Auditor.

Then, the points which are applicable only to the professional accountants in practice are professional secrecy and independence. The PAIB is an employee like any other. He has a relationship of subordination to his employer and a confidentiality clause in his employment contract.

H. R.: PAIB are represented by ECE, the French Association of PAIB, which you chair. Can you tell us more?

E. F.: ECE was established 25 years ago. Our members are employees, but also associates, administrators, owners, volunteers ... They all work in companies, education and administration, in France, but also abroad. We represent 10% of the French PAIB, the number of which is estimated at 12,000. ECE is an association, independent of the Order, non-union and non-political. ECE has been hosted by the CSOEC (The French Institute of professional accountants referred hereafter as The Institute) since 2016 and represented in a dozen regions in France.

H. R.: The PACTE law recently created the status of professional accountants in business. What does this change concretely?

E. F.: This is a crucial step forward in bringing us up to international standards. Many countries comparable to France give a large place to professional accountants in business. We are following in the footsteps of Germany and Quebec. First and foremost, PAIBs benefit from the trust mark of Chartered accountants.

H. R.: Are you satisfied with this development?

E. F.: After 25 years of waiting, we are satisfied and grateful. I thank The Institute, and its successive presidents for this and I call on all professional accountants in companies or public officials to pass through this opened doorway. The resulting opportunities will depend on our representativeness.

H. R.: And apart from this development, what are the news of the professional accountant in business?

E. F.: We are working closely with The Institute so that more and more professional accountants are registering on the Roll of the Order. Because not everything can be decided so often in Paris, this first requires communication actions by the The Institute towards the regional Orders. To go further, The Institute can rely on our association ECE to coordinate the network of professional accountants in business.

H. R.: Finally, what do you think is in the interest of an organization to work with an employed chartered accountant, therefore a PAIB?

?E.F.: The PAIB is a trusted, qualified professional supported by a national body. With his counterpart in practice, they belong to a chain of financial and extra-financial information, the quality of which is a guarantee of good governance.Therefore, any information they pass on will be of better value to others.

I have 3 cases in mind, where it is more particularly interesting for a company to use a PAIB:

• The first is when the growth of the business creates a need for a full-time Chartered Accountant. In this case, it is a safe bet that the professional accountant in practice will give up expanding his mission in order to maintain his independence.
• The second case is when the company is subject to complex and demanding regulations requiring particularly qualified personnel.
• The third case is the one where the business owner wishes to delegate part of his powers. And if he wants to have a good night's sleep, he will hand over the company’s keys to a PAIB.