A Chartered Accountant is useful for growing the economy of the country. With deep knowledge in the stock market, Forex, law matters and finance taxation every chartered accountant have knowledge different from each other. They make every person in understanding the rules and guidelines. “CAs in India are technically far superior but accounting now is not just about technicality. It is also about identifying and solving problems. Clients look and value those CAs who can be trusted as advisors and who understand the dynamics business”.
The market requires a CA who has the specialization in equity, IPO, insolvency, merging of companies acquisition analysis. It includes advising, strategies, audit to the business, CA has to understand the reports and changing the business scenarios. The audit and accounting concerns with the protection of data from cyber frauds. The globalisation is also the major reason why CA is mandatory for the companies.
The change in Economy is also a challenge for the professional Chartered accountants as to keep the detailed knowledge of the changes occurring, their consequences and the measures which could be taken to overcome the difficulties which could come in the way as a result of the challenges.
Conventionally the services offered by CAs are:
- Company Audit
- Direct, Excise, And Service Tax
- International Tax
- GST Compliance, Audit, And Training
- Company Secretarial Services
- Cost Accountancy
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The Most Important Roles of a Chartered Accountant:
Maintenance of the accounts and preparation of Financial Statements. It includes various vast services like simple Bookkeeping to complex financial analysis.
A Chartered accountant’s essential skills are his specialized training, skills and judgment taking power which is every day and every time affair. Auditing ensures the users of the financial statements that the accounts presented before them are prepared on the correct accounting principles.
Also, the Goodwill of a company is based on the right and the correct Financial statement as it is the only source of representation of the Financial condition of an Organization. Faking Financial statement could lead to disbelief and a lousy repo.
In the Statute book, there are several types of Taxes. Amongst them, the current and continuous tax information is of par importance and are vital to the powerful economies of Business Management. Assessment of Taxes is linked to financial accountancy. He imparts the responsibility of preparation of Tax returns, Assesses representation before the Income-tax authorities and he is capable enough to give general Tax advice to his clients.
Recently, it has become evident and a new role has been added to that of a Chartered accountant and that is auditing complicated cases, having vast revenue potential.
#5. Cost Accountancy
A Chartered accountant’s role becomes very important when it comes to Cost accountancy in a manufacturing firm or a service provider firm. He has to ascertain the cost of production and the costs which would be incurred at the different levels of the production. He needs to provide costing information for the proper management. Cost controlling methods and establishment of appropriate selling prices is also amongst the various important roles of a professional Chartered accountant.
#.6 Special Company Work
During the formation, financial structure and liquidation of a Limited company, the Chartered Accountant services become crucial and important. During the process, the secretarial and Registration work and the duties of a receiver are also carried by the Financial Accountant in addition to the other company work.
The Chartered Accountants are often seen whenever an investigation is carried to ascertain the financial position of a business, especially during the new issue of share capital, the purchase or sale or financing of a business, reconstruction and amalgamations. Investigations are also got done for achieving greater efficiency in management or administration and finding out reasons for increases or decreases in profits etc.
#8. Executors and Trustees
When a Chartered accountant works as a Trustee or an executor he has to work in co-operation with solicitors or lawyers and vice versa. The accountants help the Solicitors or lawyers in carrying out works and assist them in the related accounting works.
People have now realized the importance of a Chartered accountant in the Board of Directors for better decision making and getting more options before coming to any decision and such appointments are growing on a rapid rate, unlike the early times when the senior members of the company were appointed in Board of directors.
#10. Companies Secretarial Work
The smaller companies who are the participants of a limited company and are unable to afford a full-time secretary appoint a professional accountant, who apart from his various other duties, performs an important role in the management chain and also offers secretarial services.
#11. GST Compliance, Audit, And Training
Charetered accountants keep a great understanding in the GST complaince as well as audit and training of the concerned rules regulations along with the compliance for the client handling
#12. Management Accounting
Under Management accounting, a professional Chartered accountant has to perform several duties like the formulation of policies, day to day control, performance evaluation, etc.
#13. Share Valuation Work
When the amalgamation or re-organisation of any company takes place for takeover or acquisitions, the Chartered Accountant does the valuation work of the public or private companies.
The Chartered Accountant as Management Consultant
A Chartered accountant plays an important role in assisting Business organizations. They make them understand that how the resources of the organizations could be fully utilized i.e., effectively and efficiently. They suggest measures for achieving the organizational goals and objectives.
A CA as a management consultant performs a lot of consulting services as mentioned below:
- Prepares a management information system.
- He designs the budgetary and controls system.
- Determines measures of the effective utilization of capital.
- Installing the cost accounting system.
- Offers assistance to the management for the efficient use of working capital as an aid for productivity improvement.
- Performs the role of advisor for management on principles of organisation and methods for effective delegation and planning of work.
- Renders advice on international taxation matters, foreign collaborations, joint ventures, double taxation agreements etc.
- Reviews procedures and equipments for operational control.
- He does the review of financial planning and policies for effective utilization of resources.
- Performs secretarial services and offers advice on Corporate Law matters.
- He acts as the chief advisor to the management on amalgamations, reconstructions, takeovers and expansion schemes.
- Assists in the preparation of feasibility studies of New projects and expansion schemes.
- Offers advise on the system analysis and design, including the selection of hard work and development of software and the feasibility of incorporating computer applications for accounting and commercial activities.
- Assists in finding solutions to specific business problems such as product mix decisions, pricing decisions, making representation to Government on various matters etc.
- Appraisal of personnel policies and practices.
- Plays the role of advisor while the selection of executive personnel in the areas of production, marketing, accounts, data processing, personnel, general administration etc.
- Acts as an advisor or consultant to an issue, including matters like the drafting of prospectus and memorandum containing salient features of the brochure, preparation of publicity budget etc.
- He becomes an investment counselor when comes the matter of securities.
- If it is a matter of transfer of shares/other securities he acts as a registrar.