Chartered Accountant

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.
• CA carries 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, and 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

• CA specialises as tax managers and assists 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
• Business advice regarding expansion, profit analysis, profit improvement, joint venture programmes, etc
• Secretarial practice and procedures

Salary/Package

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. Average earnings of a senior level are in the range of Rs 15 lakhs to 22 lakhs per annum. The salaries may vary based on experience, skills, roles, location, etc.

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

Pros and Cons of Chartered Accountant

Pros

• High figure salary
• High demand job
• Growing industry and opportunities
• Stable income

Cons

• Ongoing learning
• Long monotonous working hours
• Difficult deadlines at the end of the financial year
• Lots of stress

How do I be one

Path 1

Std X (X > Foundation > XII) >> CA Course (Pass XII > Intermediate) >> CA Final (CA Final exam) >> Goal (Chartered Accountant)

Path 2

Std XII (Stream: Any) >> Grad/Post grad (Com 55%/other subjects 60%) >> CA course (Intermediate) >> CA Course (CA Final exam) >> Goal (Chartered Accountant)

The Chartered Accountancy examinations are divided into three levels. They are; Foundation, Intermediate & Final Examination.

Class X pass student may register with the Board of Studies (BoS) of the Institute for the Foundation Course. The steps are as follows:

• Register and complete 4 months of theoretical education for the Foundation Course.
• Appear for Foundation examination after passing in Class XII examination
• Qualify Foundation Examination

Intermediate Course is the second level of Chartered Accountancy examinations. The steps to proceed are:

• Register and pursue 8 months of theoretical education of the Intermediate course
• Pass at least Group I of Intermediate Exam.
• Complete 4 weeks Integrated Course on Information Technology and Soft Skills (ICITSS)
• Begin practical training.(Register for 3 yr Practical Training on passing at least Group I)

CA Final Examination

• Register in the Final Course on qualifying both Groups of Intermediate Course
• Complete 4 wks Advanced ICITSS during the last two years of Practical Training.
• Complete Practical Training
• Take Final examination after completion of practical training
• Take Membership of ICAI

Note: Exemptions for Candidates from the foundation course.

Those who have passed Intermediate level examination of Institute of Company Secretaries of India/ Institute of Cost Accountants of India are exempt. They may register for the CA Intermediate course directly and follow the course from there.

For Graduates & Postgraduates

• Register with the Board of Studies for the Intermediate course (provisional registration is allowed to Final year students)
• Complete 3 wk Integrated Course on Information Technology and Soft Skills (ICITSS) before commencement of the practical training
• Register for Three Years Practical Training with a CA
• Take Intermediate Examination after Twelve months of Practical Training and qualify both groups
• Register for the Final Course
• Complete 3 wks Advanced ICITSS during the last two years of Practical Training
• Finish Practical Training
• Take Final examination
• Take Membership of ICAI