Conventional Careers: Chartered Accountancy

Overview

Chartered Accountancy has always been regarded as a highly prestigious profession. The growth of the economy in the last two decades has significantly increased the role of Chartered Accountants in the financial side of business and industry, especially in the corporate sector. Chartered Accountants are usually employed in the finance department of companies or have their own independent practices. The Institute of Chartered Accountants of India is the governing body for the study and practice of the profession. Only qualified Chartered Accountants are legally authorized to audit and certify any company's book of accounts. Chartered Accountancy as a career choice ranks high among students charting out their futures in high school, competing with Engineering and Medicine as one of the most desirable professional career paths.

Chartered Accountancy: A look within

As a profession, Chartered Accountancy has risen in significance with the growth of the private sector in India. The basic scope of the profession remains the same: Accounting, auditing and taxation. With the growth of private enterprise across several business and industry domains, new rules and laws are constantly being introduced by the Government for effective governance, compliance and management of companies. The role of Chartered Accountants therefore, has expanded to encompass a diversified portfolio of functions.

Main Functions of a Chartered Accountant

Chartered Accountants are responsible for monitoring and maintaining the financial transactions of a company according to established practices, regulations and laws. Auditing involves verifying the company's book of accounts for accuracy. Tax-related functions cover assessment of direct and indirect taxes, ensuring the filing of returns on time and accurately as well as providing advice on taxation. Chartered Accountants are also involved in conducting due diligence of companies to be bought or sold. Consulting is a big part of the profession especially for established companies and involves providing consultations on -

• Internal Audit
• Company Law
• Arbitrations
• Estate Administration
• Corporate Advice
• Project Funding
• Working Capital Management

Career Scope

It is an established fact that a job is practically guaranteed on completion of the Chartered Accountancy course. The course is designed to combine theoretical study with practical training and the student gets first-hand real world exposure and experience in the functional areas of the profession. On successful completion of the course and receiving the certification from the Institute of Chartered Accountants of India, one can seek employment in the government, public sector, private sector or private practices. The private sector and private practices by far provide the best scope not only in terms of practical experience but also career progress and remuneration. According to Mr. B. Mahesh, Chairman, Pondicherry branch of South Indian Regional Council, ICAI, "The introduction of the new scheme coupled with the growing demand for CAs has made the course attractive among youngsters."

Having a professional qualification ensures that one doesn't have to start at the bottom of the hierarchy. Typical roles in an organization include Finance Manager, Accounts Manager and Internal Auditor leading to superior positions as Financial Controllers, Advisors and Directors after about a decade of experience. The private sector offers career options in the capital market, business houses, banking and investment companies, as well as financial consultancies. Professionally-qualified Chartered Accountants are required to conduct research studies, prepare project reports and do budget planning and cost analysis. They are involved in capital issues, investment counselling, business policy-making, corporate planning, organizational growth as well as issues of corporate governance.

One can also join an established practice and acquire sufficient experience to begin an independent private practice. Chartered Accountants in established practices provide a whole range of management consultancy services such as management accounting, management information systems, international finance laws and regulations as well as company formation, mergers and acquisition, and liquidation among others. Chartered Accountants are increasingly in demand not only in traditional industries and business companies but also in technology and outsourcing companies who take up finance-based projects. The annual demand for CAs is expected to be around 50,000 but there are currently only about 10,000 professionals entering the industry each year.

Professional Career Graph

Chartered Accountants are trained to provide services in Accounting, Auditing, Corporate Finance, Corporate Law and Taxation. With a few years of hands-on experience, they can choose to specialize in one or more areas to increase their demand in the market. Professionally qualified CAs find employment as finance professionals in private and public enterprises, and as audit practitioners at independent practices offering auditing services. They are also professionally qualified to offer management consultancy services and specialized advice in income-tax, sales tax, service tax and other taxation matters.

CAs who combine their training with exposure to information technology can increase their value in the market by offering technology and systems-based services. It's advisable to get a solid foundation at a company or auditor's firm as an employee before venturing into independent practice. Being a specialized, and more importantly an essential role in a corporate structure, CAs are offered positions with great responsibility and opportunity for fast-paced career growth. Quite a few CEOs and Managing Directors in industry and business today have a Chartered Accountancy background.

A CA can also acquire MBA degrees to increase scope for better employment. The ICAI offers placement services for qualified CAs each year with participation by companies from diverse domains such as investment banking, information technology, shipping and construction. The ICAI certificate is recognized in several countries and approved for practice while a qualified CA has to pass the Certified Public Accountant (CPA) examination to be eligible for practice in North America.

Salaries and compensation

That the profession is highly lucrative even for a fresh Chartered Accountant recently enrolled as an Associate Chartered Accountant (ACA) can be gauged from the fact that average starting salaries are three times higher than fresh graduates with MBA and Company Secretary qualifications. Ever since the ICAI began offering placement services to newly certified CA professionals, there is more information available on the emoluments prevalent in the profession. According to ICAI, the average salary offered to candidates at the Institute's placement program in 2006 was Rs. 4.34 lakh per annum. In 2008, it rose to Rs. 6.11 lakh per annum.

As per 2008 placements, the highest salary for a domestic placement was pegged at Rs. 12 lakh, up from Rs. 10 lakh in 2007. The highest international offer was Rs. 16.17 lakh, though the previous year saw the highest offer for an international posting at Rs. 38.25 lakh. The banking and investment sector and IT companies were the leading recruiters of CAs in 2008 followed by Oil & Gas, Financial Services and Mining companies. Over 70% of selected candidates received offers of Rs. 5 lakh and above per annum.

Being in an independent practice can be really lucrative with the right kind of business clients. Specialized services for taxation, corporate law and management consultancy can be offered as value additions on attractive remuneration terms.

What do you need to get there?

A head for numbers is a basic requirement. A high level of commitment is required during the period of study since it involves intensive practical training built upon a strong theoretical foundation. The new format of education introduced by the ICAI places a student in the CA program right after school and involves a rigorous schedule of articled training and theory studies.

One needs to have strong understanding of the business environment and high comfort levels with information technology. Regulations and laws are in a constant state of flux given the complex business climate that creates new dependencies practically every day. A good CA should be a good and quick learner, and always aware of current rules and compliance matters. Being responsible for money management, a CA's competence levels can make or mar a company's growth plans. Good communication and interpersonal skills as well as patience are basic personality traits required in a capable Chartered Accountant. There is a lot of confidential information in the possession of CAs that must be safeguarded in the interests of the company at all cost.

Pros, cons and working hours

The profession is highly challenging as a career choice. On the positive side, this is a profession that pays well and provides opportunities for fast growth within a few years of leaving high school. No other profession affords lucrative career opportunities so soon, especially not Engineering and Medicine. One also has the advantage of offering competent services across the board or specializing in one or more domains within Chartered Accountancy. Jobs are practically guaranteed on enrolment at the Institute and the training makes candidates career-ready even before they received the official certification.

There are very few negatives in this profession. The examinations are difficult with very low pass rates. Updating oneself constantly is a given in Chartered Accountancy since new rules and regulations are added continuously by the lawmakers and one could get left behind and cause immense losses to clients if one's not aware of the changing scenario. The responsibility stakes are really high in this profession since CAs are the official money managers. The profession is in the direct line of fire when companies are not doing well or have been found to have compromised financial ethics. One has to be really careful and execute work with integrity and independence in this profession.

Employment in the Government and public sector offers regular working hours except perhaps during the half-yearly and annual closing of accounts. The private sector offers greater opportunity in terms of work and money but also can be really taxing in terms of responsibility. There is a requirement for greater day-to-day involvement in the financial and business operations of the company. Working hours are stretched in private enterprise and CAs are expected to put in at least 12-14 hours of work each day.

How do you get there?

Since 2006, the ICAI has implemented a new system of study for prospective Chartered Accountants. Compared to a more strenuous schedule earlier that took most students more time to complete, the new system encompasses 3¹/2 years of study and articled training right after the 10+2 examinations. Students intending to pursue the CA program need to register for the Common Proficiency Test (CPT) with the ICAI right after passing the 10th Board exams. Registered students use the next two years of school to simultaneously prepare for the CPT and appear for the test right after the 10+2 exams. CPTs are held in June and December each year. Stressing on the importance of the theoretical concepts at the 10+2 level, Mr. P.C. Jain, Principal, Sri Ram College of Commerce, New Delhi states "It's very important for a student to have absorbed the theoretical knowledge at the 10+2 level. Only then can one relate to what is being taught at the college, but the success of a student depends on how he applies the knowledge in a realistic way in the industry."

On passing the CPT, the student has to register for 3¹/2 years of articled training with a qualified Chartered Accountant as part of the next stage of the CA program, the Professional Competence Course that also includes 100 hours of Information Technology Training (ITT). The student has to appear for the Professional Competence Examination (PCE) after having completed a minimum of 15 months of articled training as well as the ITT. After passing this exam, the student has to register for the Final Course that also includes the General Management and Communication Skills Course in the last 12 months of articled training. The student can sit for the Final exam on completion of 3¹/2 years of articled training. Once CA students have cleared the Final exam successfully, they can enrol with ICAI as Associate Chartered Accountant officially qualifying them for practice in a professional environment.

Commerce graduates with 50% scores, non-Commerce graduates with non-Math subjects and 55% scores as well as non-Commerce graduates with Mathematics and 60% scores can directly register for the Professional Competency Course without appearing for the CPT.

Premier Institutes for Chartered Accountancy

The Institute of Chartered Accountant of India (ICAI) is the examining and licensing body for the profession of Chartered Accountancy in India. Headquartered in New Delhi, the ICAI has five Regional Councils in Mumbai, Chennai, Kolkata, Kanpur and New Delhi and 117 branches across key locations in the country. The Institute also has 20 Chapters at various overseas locations. Being the governing body, only the ICAI has the power to impart education and train students for the CA program, grant memberships to successful candidates and certify CAs for practice in India.

Entrance Exams & Admissions Schedule