Chartered accountant (CA) firms play an integral role for organisations by providing them financial information based on which critical business decisions are made. Until a few years ago, CA firms were primarily restricted to traditional areas of practice including auditing, accounts, and taxation.
However, the changing economic scenario, thanks to various policies of the Government, coupled with disruptive technologies such as Big Data and Analytics, warrant CAs to go beyond the traditional services offered. It also presents opportunities and challenges in equal measures. Let's look at some of them.
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. As per the 68th annual report of The Institute of Chartered Accountants of India for the year 2016-17, the number of CAs in the country is a little over 2.7 lakhs. 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 clients in developing areas and take the first-mover advantage.
From expansion to growth to improving current practices, CAs can make the maximum of opportunities with a custom-made Chartered Accountant Loan offering funds up to Rs.2 crore. These loans are quick, easy and convenient and offer money in bank in 24 hours.
Additional Read: How to finance your CA firm?
Challenges
Economic Challenges
Rapidly increasing costs, growing competition and decreased client acquisition and retention are some of the economic challenges CA firms face today.
Data Security Challenges
For CA firms, it's important to protect critical client data as theft can lead to loss of reputation, trust and even clientele. Using genuine software, investment in solutions like firewall and anti-virus and implementing robust cyber-security solutions with the organisation is critical in the modern day. The costs can go as high as Rs.5 lakh.
Technology Challenges
- 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, it’s important for CA firms to 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 long-term growth of a CA firm. CA firms must contemplate investing in employee training programmes to uplift 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.
Conclusion
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 their set of challenges, which can be overcome by critical thinking, the right resources and finances. While CAs dissect complex numbers with their intelligence, Chartered Accountant Loan help them overcome financial hurdles in achieving their dreams.
Additional Read: How to run a CA practice successfully
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