The profession of Chartered Accountant (CA) has become one of the most popular career choices in India. It is not easy to get into it. But it offers a great path, high salary, and reputation among individuals. It is regulated by ICAI in India.
The Institute of Chartered Accountant of India (ICAI) is a statutory body. It is established under the Chartered Accountant Act, 1949. It works under the administrative control of the Ministry of Corporate Affairs and the Government of India. The ICAI is the second largest body of Chartered Accountants in the world.
What is Chartered Accountancy in India?
Chartered Accountancy can be defined as the management of finance for a business entity. It includes:
- analyzing and managing financial accounts
- auditing, budgeting
- business strategy
Chartered Accountant is an individual who works in every sector of the economy. He manages the finance of an entity. Besides it, responsible to provide financial advice, taxation profiling, business transaction, and money management, etc.
Roles and Responsibilities of CA
As a Chartered Accountant, you will have the roles and responsibilities like:
- To manages the financial system and budget of a firm
- Undertake the audit (an independent check of the financial position of a firm) regularly
- Provides financial advice i.e., to reduce expenses, loss, business improvement to clients
- Review the company system and analyze risk
- Provide advice to clients on tax planning, business transaction (acquisition and merger), treasury issues, and other major concerns
- Maintain accounting records and prepare a book of account (for the small firm)
- Detect and prevent fraud in the organization
- Manage junior colleagues, accountants to perform their tasks efficiently
- Negotiate with suppliers and maintain proper bill of exchange etc.
- Provide audit reports whenever asked by the management
- To ensure that any of the documents are not leaked by his/her side
All these roles are essential for a chartered accountant and must fulfill very carefully. Because failure in any role and responsibilities lead to failure in practice certification.
Skills of CA
In order to get unique, the basic skills that are necessary for any Chartered Accountant are:
- Business awareness and interest
- Information technology (IT) proficiency
- Strong analytical and problem-solving skills
- Good communication and interpersonal skills
- Knowledge about corporate law and business law
- Trustworthy nature and belief in the accuracy
- Bachelor’s degree in accounting i.e., BBA, B.COM, BCA, etc.
Salary of CA
The salary of a Chartered Accountant is as:
- Starting salary for CA will depend upon the location, size, and type of firm. Moreover, one can expect to earn a salary of up to USD 30,000.
- During training, the average salary is expected up to USD 50,000.
- Afterward, the completion of training period make them to avail the average salary will be around USD 90,000 per annum.
In addition, like banking and big firms, the salary package will also include extra benefits. These benefits are:
- fringe benefits
- medical insurance
- pension fund
- profit-sharing scheme
The average starting salary of a CA is around Rs 7 lakh per annum. Whereas, Multinational Companies will pay around Rs 10 lakh per annum.
Hence, it is clear that ICAI has made very good rules and regulations for providing training to the professional.
To conclude, it is not easy to get into the profession but it offers a great path, high salary, and reputation. If an individual has an interest and can devote sufficient time with full dedication can opt for this career.
Frequently Asked Questions
CA is the abbreviation of Chartered Accountant who works in every sector of the economy to manage the finance of an entity.
Whereas, ICAI is the statutory body that regulates the profession of Chartered Accountant in India.
After the completion of intermediate studies, the introduction of a foundation is the very first step. It will only take four years and 6 months (minimum) to become a chartered accountant.
There are various opportunities for CA such as accounting, auditing, corporate finance, taxation, GST compliances, corporate law, business advisors, etc.
Chartered Accountants are professionals who work in various sectors of the economy. He/she is responsible to manages the finance of an entity, providing financial advice, money management, taxation, etc.
Yes, CAs are the most eligible person to become the CEO of any company. There are many in both public and private sectors such as Mr. Kumar Mangalam Birla. CA Kumar Mangalam Birla is the chairman of the Aditya Birla Group, one of the largest conglomerate corporations in India.
On average, the minimum basic pay an individual can get as a CA is Rs 7 lakh per annum with the highest pay of Rs 25 lakh per annum – Campus placement program conducted by the Institute of Chartered Accountant of India.