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4 Essentials of a successful CA firm

  • Highlights

  • Going beyond accounting

  • Improving office infrastructure

  • Upgrading to the latest technology

  • CA loans to meet your firm’s expenses

Chartered Accountancy one is one of the most lucrative and vital practices in any country. Chartered Accountants are recognised as professionals with robust knowledge of accounting, law, taxation, audit and other financial subjects.
However, a successful CA firm requires more than exemplary accounting skills. Apart from hiring efficient employees and their training, a CA firm needs funding for infrastructure, events, equipment, office rent, subscriptions etc.
Here are the stipulations required to establish a successful CA firm:

1. Salary & Stipend of the office staff

Skilled and motivated employees are obligatory for the success of any organisation. The central problem that many CA firms face today is employee retention. The attrition rate of articles, trainees and junior accountants are extremely high, leaving the firms to look out for fresh ones time and again. Recruiting a chartered accountant can cost you around ₹7-8 lakhs per year while it can go up to ₹25 lakh based on experience and proficiency. Add employee insurance and other stipends to it and it will pile up as a huge amount that needs to be paid as wages.

2. Trade License & Govt Approval

As per the state government’s fundamentals, a CA firm is required to register and take a professional tax registration, approval from Municipal Corporation and a trade license. You can set-up a CA firm anywhere in India irrespective of your place of birth and education.

Additional read- Apply easily for Bajaj Finserv CA loan

3. Office Expenses & Infrastructure

Ensuring a high-end office location of your CA firm becomes important in the competitive world. An equipped office is completed with technical proficiency and befitting infrastructure.
However, leasing or hiring a property at prime locations may burn a hole in your pocket. Acquiring an official property at Bandra Kurla Complex in Mumbai can cost you around ₹8-10 lakhs per month. Add electricity and computer expenses to it and it will pile up as a mountain of expenses.

4. Upgradation of Technology

In addition to basic infrastructure and good employees, your CA firm should also imbibe latest tech trends to deck the employees with best facilities. Technological advancements like cloud computing, blockchain technology and adoption of automation are revolutionising the accounting techniques.
National Management of Accounting Practice Survey, 2016 found that 56% of the accounting firms are using these advanced techniques to enhance productivity.

Installation, infrastructure maintenance and labour charges for these technical elevations may cost you around ₹10 lakh along with monthly maintenance charges.
These expenses could add up heftily and can be a cause for disruption in your dream of running a successful CA firm. High costs of training and installing latest technology for your firm may come to stall your business but with Chartered Accountant Loans from banks or Non-Banking Financial Corporations, you can turn your venture into a highly successful unit.

Additional read: Top tips every practicing CA must keep in mind

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