Indian hosts a population of 6.8 Crore taxpayers. Considering the complications involved in understanding tax payments, these individuals rely heavily on chartered accountants. Add on to this the recent implementation of GST, and the demand for CAs has increased manifold.
Following this, approximately 30,971 candidates appeared for this year’s CA exam, and an estimated 5753 of them cleared it. However, the number of practising CAs has still taken a nosedive due to the increased cost involved in setting up and running a practice.
In an attempt to help them meet their financial burden, multiple financial institutions now offer their CA loans that financially cover expenses, such as –
- Purchase or rent a new office space.
- Recruit skilled staff.
- Integrate technology into practice, etc.
However, in case individuals wonder about how to be successful in CA practice, there are a few aspects that are inclusive of but not conclusive to the financial front that they should take into consideration –
- The location of the firm
While the steady globalisation of India’s economy continues to provide escalated chartered accountant practice opportunities, the setting up of a personal firm lends in the required credibility. All that one needs to do is follow a step-by-step guide to starting a new CA firm.
However, one should be careful while settling upon a location to set up his/her firm. Setting up a firm in a well-connected site ensures increased traffic of clients and hence leads to the generation of revenue thus providing growth opportunities for chartered accountant.
- Scope and area of a practice
With India developing as one of the top economies across the globe, there has been a rise in the demand for chartered accountants who know the fields of –
- IFRS compliance
- Knowledge process outsourcing
- Forensic accounting.
Thus, expertise in the aforementioned areas of practice acts as add-on qualities of an accountant and is sure to boost your demand in the growing corporate culture in the country.
Some other traditional scopes of working include –
- Insurance advisory
- Audit expertise
- Financial reporting, etc.
Candidates will also prefer your firm for CA articleship if it covers these traditional areas vs. emerging areas of practice.
- A professional indemnity insurance
Considering the risks involved in the profession of a chartered accountant, acquiring professional indemnity insurance is of paramount importance. This safety net ensures added security quotient in case your practice’s risk management strategies take a nosedive. It protects a CA personally along with his/her employees, and the business against any claims of breach of statute or of the contract. It has been proven as one of the essential pointers on how to be successful in CA practice.
- The financial planning or layout
CAs, prior to setting up a practice, need to break down their financial requirement and decide upon the total cost of impending investing involved in setting it up.
Availing a CA loan can provide –
- High-value loan amount of up to Rs. 35 Lakh
- Zero collateral required
- A flexible repayment tenor ranging from 12 to 60 months
It is ideally imperative to approach leading lenders like Bajaj Finserv and avail their Loan for Chartered Accountants.
While this lender requires its potential borrowers to provide nominal documentation, it also offers its existing borrowers with the benefit to avail pre-approved offers. These offers ease the application procedure to avail financial assistance and are available on numerous financial products, viz. – business loans, personal advances, home loans, etc. You can take a look at your pre-approved offers by providing a couple of essential details.
- The required legal approval and documentation
According to the requirements of the government, before starting on with a CA firm, individuals need to take –
- Trade license
- Professional tax registration
- Approval from the Municipal Corporation
Following the acquiring of these documents, CAs can set up their firm and start on with their practice anywhere across the country, irrespective of the place of their birth or graduation.
Taking into consideration the above mentioned pointers can help one in their query on how to be successful in CA practice. However, make sure to have an entry, pricing, and client strategy before you start with your practice. It gives you the required edge over your competitors.