Chartered accountant (CA) firms play an integral role for organisations by providing them with financial information based on critical business decisions. Until a few years ago, CA firms were primarily restricted to traditional practice areas, including auditing, accounts, and taxation.
However, the changing economic scenario, thanks to various government policies and disruptive technologies such as big data and analytics, allows CAs to go beyond the traditional services offered. It also presents opportunities and challenges in equal measures. Let’s look at some of them.
1. Grow indirect tax practice
Since the government implemented GST in India, many businesses have looked to CA firms for financial advice and compliance related to GST. Thus, they can cash on the GST market to strengthen their indirect tax practice.
2. Improve Quality of Audit
The emergence of technology such as big data and analytics provides opportunities for CA firms to improve audit quality by reducing error and improving the risk assessment process. The cost of learning big data and analytics can go as high as Rs. 4 lakh.
Additional Read: Essentials of a successful CA firm
3. Expand to new markets
In India, the number of CAs is far less than required. The 72nd annual report of The Institute of Chartered Accountants of India 2020-21 states that CAs in the country are a little over 3.2 lakh. Thus, it’s a perfect platform for those in business to expand to newer markets and offer their services. Expansion incurs cost in the form of:
- Office space
- Market research
- Setting up infrastructure
- Hiring staff
- Regulatory compliance
With many CA firms crowding metro cities and making the market increasingly competitive, you can reach out to clients in developing areas and take the first-mover advantage.
From expansion to improving current practices, CAs can maximize opportunities with a custom-made chartered accountant loan offering funds up to Rs. 50 lakh. These loans are quick, easy and convenient and provide money in the bank in 24 hours.
Additional Read: How to finance your CA firm?
Rapidly increasing costs, growing competition, and decreased client acquisition and retention are some of CA firms' economic challenges today.
Data Security Challenges
CA firms need to protect critical client data as theft can lead to loss of reputation, trust, and even clientele. Use genuine software, invest in firewall and anti-virus solutions, and implement robust cyber-security solutions with the organisation. The costs can go as high as Rs. 5 lakh.
- Understanding environments: in which your clients function like Oracle, SAP, etc.
- Need to Unlearn & Learn: To retain a competitive edge in the market and curb frauds, CA firms must learn special courses encompassing- international taxation, forensic accounting and fraud detection, anti-money laundering laws. Post qualification courses like information system audit, concurrent audit of banks can help you get banking clients.
- Embrace technology: Adopting complex technology like computing, audit technology, data analytics helps CAs stay ahead of the curve and effectively deal with complex issues affecting business operations.
- High staff turnover: Investment in employee training programmes is critical to foster the long-term growth of a CA firm. CA firms must contemplate investing in employee training programmes to uplift the productivity of their employees and tackle low employee retention. Since chartered accountancy is one of the busiest professions, it’s a challenge for CAs to squeeze out time from their busy schedule and participate in such training programmes.
The current economic environment presents many opportunities for CAs to grow their business. In India, business entities and common people depend on a CA’s advice to undertake financial decisions. Opportunities come with challenges, which can be overcome by critical thinking, the right resources and finances. While CAs dissect complex numbers with their intelligence, chartered accountant loan helps them overcome financial hurdles in achieving their dreams.
Additional Read: How to run a CA practice successfully
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