Career as a C.A.

By Taru Bahl

TILL a few years ago, serious career planners had barely a handful of job options — engineering, medicine, services and chartered accountancy. This took care of science, arts and commerce. In the early 90s there was a perception that perhaps these professions have become saturated, that there were too many engineers, doctors and C.As and too few jobs. Things changed after liberalisation. Even a specialised field like accounting and finance were further split, making them more focused as they targeted niche business segments. Chartered financial accountants, leasing and insurance experts, company secretaries, bankers, tax consultants and financial managers are finding a lucrative place under the sun. Suddenly the generalist was as much in demand as the specialist, depending on where he sought his employment.

The present day chartered accountant has his role very clearly defined. Any venture be it small, medium or large, profit making, an NGO, a private or public enterprise needs the services of a qualified C.A. who is legally allowed to audit a company’s books. Public sector organisations have to have their accounts checked by an appointed firm of accountants (Lovelock Lewes, Price Waterhouse, Arthur Anderson, Fergussen are some of the top ranking ones).

As a consultant, he plays the critical role of assisting businesses in utilising their resources optimally, in increasing their efficiency and in helping them achieve their objectives. A C.A. helps to develop management information systems, design budgetary control procedures, determine measures of effective utilisation of capital, install cost accounting systems, offer advise on international taxation, foreign collaborations, joint ventures, amalgamations, takeovers and expansion schemes.

This job is to assist in preparation of feasibility studies, offer inputs in decisions relating to product mixes, make representations to the government, design, pricing, act as registrars to new issues, transfer of shares, double up as arbitrators for resolving disputes on bankruptcy and insolvency.

To be a C.A, you have to be accepted as a member of the Institute of Chartered Accountants of India (ICAI) which is India’s premier accounting body. Established in 1947, its dual purpose is to produce C.As and to regulate the functioning of the profession of accountancy with its headquarters at New Delhi, it operates out of its regional offices in Calcutta, Mumbai, Chennai, Kanpur and Delhi. There are more than 75 regional centres across the country. To be a member of the ICAI you have to clear first your intermediate and then your final exam. Follow this up by registering as an article or audit clerk with a practicing C.A (preferably with a reputed firm because transfers are not easy to come by and it matters where you do your articleship from). Finally, you will have to register with the Board of Studies at the Institute.

To take the intermediate exam after plus two (any academic stream) you have to do the year-long foundation course. This gives you an early entry into the profession and helps to channel your energies. This course is by correspondence. Resource material is sent by the ICAI. You can attend contact classes organised by accredited institutions to get a better feel of the subjects. It is advisable to finish your graduation side by side. Whether you choose to do it as a regular student or through correspondence is your choice. Either way you will have to be prepared to work hard and to manage time efficiently. Once the foundation course is over, you can register for articleship.

After the foundation course, if you are fortunate enough to clear all your exams, you could well be a C.A within three years. There are however contenders who struggle with their papers for eight-to 10 years. Once the foundation course is over and you have registered for articleship you have to wait for 14-15 months before you can take your first group of exams in the intermediate course. Give another six-month gap and take the second group.

After the intermediate ‘hurdle’, you are ready to take on the finals. Again you have to wait for a year. Articleship can be done after graduation or postgraduation as well. Then you do not need a foundation course. It helps to have commerce at the B. Com level, although it is not a pre-requisite.

After clearing the inter exam you undergo practical training in a financial, commercial or industrial undertaking, approved by the ICAI. This could be for nine to 12 months during the last three years of prescribed practical training. Your upward progression here is time-bound. Articleship, training, working as a senior, manager and partner are all determined by your experience, number of years, quality of output and the exams you have cleared.

A chartered accountant has to be well versed in all matters of accounting. This includes writing of accounts, preparing financial statements, functional book-keeping and complicated financial analysis.

He should be able to maintain cost audit records, compile cost information, install cost controls and perform cost audits. Auditing is an integral part of the profession. You have to ensure that the accounts presented by the client are drawn up on correct accounting principles.

Taxation is another area which is linked to financial accounting. Here, you prepare returns for tax purposes, represent assessee before the income tax authorities and offer advice on tax related matters. A C.A could be appointed for a specific task like forming the financial structure and/or liquidation of a limited company.

He could be asked to carry out investigations to ascertain the financial position of the business with regard to new issues, raising share capital, purchase, sale or financing of a business, look into demands made by trade unions. As an executor or trustee he could be asked to carry out final settlements which require close coordination with solicitors and lawyers.

A competent C.A should be able to provide the entire gamut of financial services which fall under his purview. These include the annual audit and accounts, management accounting, budgeting and cash flow forecasting, setting up efficient financial reporting systems, book-keeping and VAT, corporate law advise, project planning, systems design and information consultancy.

Management accountancy could be handled by a CA or an MBA or by both. Here complete finance planning is undertaken — both the shortfalls, losses and the revenues, profits. Salary structures, bonuses, provident fund, incentive schemes are worked out with the help of a CA to avoid ad hocism, rash decision making and legalese.

The role CA is all encompassing. Since his expertise, analysis and final verdict carry a lot of weight in the management’s most crucial decisions you will often find a CA on the Board of Directors.

After putting in 10-15 years in the field, you can — with a group — of set up your own consultancy firm and work with clients on a project-to- project basis. Each one of you could have your area of specialisation. Although you do not need to be a mathematical wizard, you must have a way with numbers, strong business sense, the ability to predict a company’s health by studying its balance sheet and the personality which reposes confidence in your clients.