Self Employed as Chartered Accountant (CA)

Chartered Accountants deal with the management of money and provide financial advice. They maintain records of financial transactions which every organisation is required to keep by law and also carry out company audits.

Job Profile

Chartered Accountants are members of the Institute of Chartered Accountants of India. They work in private practice or in the accounts department of firms and organisations. The range of work in private practice can vary enormously according to the size and place (city) of practice. If it is a large practising firm there is greater specialisation of individual accountants within the organization. Computers are widely used in accounting and auditing. Accountants summarize transactions in standard formats for financial records, calculate projected financial ratios, or organize data in special formats for financial analysis. Accountants may be involved in any of the following tasks:

Financial Accounting

Financial accounting deals with keeping financial records. The job involves interpreting accounts, supervising, controlling and organising expenditure and income, etc. It includes compiling daily, monthly and yearly management accounts.The tasks are:

Operating accounts Carrying out internal audits Dealing with wages and salaries Paying accounts and sending out invoices Managing tax Auditing

Statutory audits are required as per the Company Act by both the private and public sector. CAs carry out internal audit to keep track of management procedures and internal controls and ensure that records are accurate and controls are appropriate. They review compliance with corporate policies and procedures. Tax auditors review financial records and other information provided by taxpayers to determine the appropriate tax liability. Government departments have tax auditors who may be appointed to audit the taxpayers’ accounts. Cost Accounting

Cost accounting deals with the complex business of working out what particular operations, jobs, products really cost to produce. It extends to:

Budgeting and budgetary control Forecasting Monitoring expenditure to see that costs are not over-shooting Tax Management

CAs specialise as tax managers and assist in optimising the firm's financial structure. They look at the tax implications of new plans, changes in company structures, in fact any major decision. They advise on the tax effect of performance goals. Management Accounting

Management accounting is a task senior chartered accountants perform.They collect, organise, collate and analyse information from all parts of the organization.Make regular critical analysis of past and present financial performance Make projections for the future. Consultancy

Consultancy is a challenging opening for bright and ambitious young CAs. Business today needs right information related to accounting. Consultant's functions relate to the following areas: Corporate law advice regarding company formation and structure, liquidation and financial aspects Project planning and advice on financial resource Investigation of share valuation for takeovers, issue of capital shares, and amalgamation with other firms. Business advice regarding expansion, profit analysis, profit improvement, joint venture programmes, etc. Secretarial practice and procedures Information systems management CA in the industry

In the industry CAs are generally found in the higher positions of the accounting department and in the finance division at all levels. Besides the regular role CAs are involved with planning and financial strategies, preparing prospectuses for share issues, managing pension funds and long-term investments, investigation of prospective investments, merger or takeover.

Skills required

• ·         A disciplined attitude for hard work
• ·         Good understanding of socio-economic environment in which organisations operate
• ·         Numerical ability
• ·         Logical and methodical approach
• ·         Ability to take stress
• ·         Attentive to detail
• ·         Ability to deal with different types of people
• ·         Necessary skills in applying theoretical knowledge to practical situations
• ·         Ethical values
• ·         Analytical mind
• ·         Good verbal and written expression
• ·         Business acumen
• ·         Patient and industrious

Employment Opportunities The opportunities for Chartered Accountants are varied:

Independent professional practice Chartered Accountants firm Capital market services Business houses and industry Consultancy firms Large organizations and institutions Financial institutions There are over 78,000 members of the Institute of Chartered Accountants, 70% of whom work in public practice (self employed) and the remaining are engaged in services in trade and industry.

Earnings

2.93 Lakhs to 15.18 Lakhs per annum

(Salary data sourced from PayScale.com)

Earnings Details Chartered Accountants earnings depend on the position in a company. The average income could range from Rs 60,000 to Rs 1.8 lakhs per month. At senior level the sky is the limit.

How do I get there?

Path 1:

Std X After Class X > C...         Professional Course    IPCC**>CA Final e...    Goal     Chartered        Accountant

Path 2:

Std XII  Stream: Any     Graduation / Post graduation   Subject: Commerce...  Professional Course

IPCC**>CA Final e...    Goal    Chartered Accountant

The Chartered Accountancy examinations are divided into three levels. They are

·         Common Proficiency Test (CPT)

·         Integrated Professional Competence Course (IPCC)

·         Final Examination 

CPT exams are held in June and December in paper pencil mode.

*CPT is renamed as Foundation course (2016)

**IPCC or Integrated Professional Competence Course is the second level of Chartered Accountancy examinations. A person can take the IPCC Examination after passing CPT and nine months of study.

Exemptions from CPT: Commerce Graduates with more than 55% marks from a recognised university and Non-Commerce Graduates with more than 60% Marks and who has passed the Intermediate Exam conducted by the Institute of Cost Accountant or by the  Institute of Company Secretaries of India 

Exempted candidates can also directly register for articleship without clearing IPCC Group

***CA Final Examination iOn passing both the groups of IPCC, during the last six months of article ship can take the Final Examination. IPCC and Final examinations are held in May and November each year.

After passing Group I of IPCC, a  3-year on-the-job training as article or audit assistant, articleship with a practicing CA is mandatory.

Also a General Management and Communication Skills Course has to be taken during the last 12 months of Articleship.

Advanced Information Technology Training is a mandatory course to be done during last year of articleship but before appearing in Final Examination.