why CA are needed.
As per ICAI report there are approx. one third of Chartered Accountant are into active practice in India.
Whether you are running a large corporate or ventures into entrepreneur journey, managing
finances can be tricky. It is more challenging for the entrepreneur as tracking numbers, keep
an eye on banking, debit, credits etc. which often is confusing and frustrating.
A correct timing and accurate financial records help in knowing financial position, predicting
future action, planning effectively and help in taking thought through decision. This is the
reason why CA are needed who can handle financial situation of the
organization in an effective manner.
Before we proceed for the role of CA, it is important to understand who is called a Chartered
Siba Panda, Founder & Managing Director of Faustus Advisory, says, “CAs in India are
technically far superior to any other country in the world but now it is not just technicality but
about identifying and solving problems. CAs are become valuable if clients can trust them as
advisors and have understanding about the dynamics of business.”
Chartered Accountant :
A Chartered Accountant is someone who has completed all his examination from ICAI incl.
compulsory training with a practicing CA firm. It is often confused with an accountant in
industry but CA plays a very niche role compared to accountants who are more into jobs.
Conventionally the services offered by CAs are:
– Company Audit (Statutory, Internal, Management, Inventory, joint audit etc.)
– Taxation comprise of Income tax, International tax, transfer pricing, Custom matters
– Goods & Service tax (GST) compliance, audit and training
– Company secretarial services
– Cost accountancy
The dynamic of business environment demand shift of role from traditional to being strategic
or business advisors, administrator to business who can help entrepreneurs through
changing business scenario, solving complex problems, skillfully interpret law, reports etc.
Other areas include Investment Banking, Analysis of business acquisition, Mergers, equity
and IPO research, fraud and insolvency analysis, data analysis, cyber security etc.
A CA holds a vital role in providing required knowledge and advice to the investors including
various stake holders of the organization e.g. shareholders, directors etc. As a control
mechanism CA’s frame various rules and policies for the organization for smooth functioning
of operations and prevention of fraud, leakages etc.
Chartered Accountant aims in attaining business growth and profitability in the business.
With extensive knowledge of finance and laws, CA’s help the businesses as well as matters
relate to personal financial problems.
– Moving from traditional to advance accounting
– Diversifying into various areas of consultancy
– Emerging fields into accounting
– Financial modelling and planning & structuring of
– Growth curve etc.