Accounting is the study if how businesses track their income and assets over time. This is a challenging field that offers job opportunities in the areas of accounting, auditing, corporate finance, project evaluation, company and other business laws, taxation and corporate governance.
The Work of Chartered Accountant:
Chartered Accountants (CAs) are trained to examine, interpret and plan to all types of financial transactions. It is the CA who checks all the vouchers, receipts and financial statements to make sure all the money in the company is honestly accounted for. They are also engaged in activities like preparing project reports, management accounting, cost analysis, budget planning, working capital management, auditing etc.
However, the CA’s job doesn’t end there; they advise businesses on mergers, taxation and many other areas, and provide personal financial planning. Some accountants specialise in areas such as taxation, or auditing. They may also specialise in client’s form a particular field. Sometimes, they hold senior managerial positions in accounting firms, industries and are known as the lead in providers of financial and business advice.
Education & Skills of Chartered Accountant:
To practice as a Chartered Accountant, one has to clear two examinations of Integrated Professions Competency course (IPCC), conducted by the Institute of Chartered Accountants of India (ICAI), and become a member of this institute.
Admission is through CPT (Common Proficiency Test). It is a test of four subject’s i.e., Accounting, Mercantile Laws, General Economics and Quantitative Aptitude. One can appear in the test after appearing in the examinations of 10+2 (all streams). The test of conducted twice in a year i.e., in June and December.
The examination syllabus of CA is quite extensive and in depth study is required. ICAI provides the required theoretical knowledge through Postal tuition as well as practical training.
Key Skills of Chartered Accountant:
- Excellent numerical ability and analytical mind to interpret facts and figures correctly.
- Confortable with numbers, though the mathematics involved is only of high school level
- The ability of understand, manipulate and make use of numerical and statistical data.
- A methodical approach to the work, involving logical thinking and attention to detail
- Good communication and organizational skills
- An understanding of, and interest in, business is helpful
- Work on their own in a team environment with others
The Institute of Chartered Accountant:
The Institute of Chartered Accountants of India (ICAI) (www.icai.org) is the only institute in the country conducting this course. The Institute has its headquarters ate New Delhi. In addition, it has five Regional Councils located in Mumbai, Chennai, Kolkata, Kanpur and New Delhi and 117 Branches spread all over the country. The Institute also has 20 Chapters outside India.
Remuneration of Chartered Accountant:
Usually the pay packet depends upon the reputation of the company. With a good, reputed company, starting salaries may range in Rs. 25,000 – 30,000 per month. With experience the amount may even go higher. For those in private practice, the sky is the limit.
Job prospects of Chartered Accountant:
Wherever there are users of money, however small the business may be, the services of a CA are required. Moreover, under the Companies Act, only CAs in professional practice are entitled to be appointed as auditors of companies in India. With growing globalisation and formation of new policies, the corporate of more specialised professions. There is also a demand for consultancy service on specific issues to business enterprises.