Chartered Accountant has become the most likable and most popular career not in India but in various countries. However, there are several tasks and examinations for appearing C.A and it is considered a little difficult career.
Chartered accountants are not only respected because of their salary, qualification but it is not easy to become one.
However, after this, you will able to understand procedures, salaries to become C.A
What You will get:
- What is Chartered Accountancy
- Why choose as a Career
- Key sectors for Chartered Accountant
- Procedure to become C.A
- Salary structure
- Job roles of C.A
- Conclusion
- Frequently asked questions
What is Chartered Accountancy?
Chartered accountancy refers to the profession which involves the management of finances for an enterprise.
Chartered Accountancy and Accounting have the same profession but only have a difference in experience and knowledge level.
It includes various duties like auditing, consulting and managing accounts, etc. A person can do a job as well as can start their own Business after qualifying C.A.
But, there are some misconceptions which people keep in their mind like:
- It requires only commerce background but it is not true. A person can apply for C.A with the any background.
- It does not need any fixed percentage in senior secondary which a student can apply only with passing grades.
Why to choose C.A as a Career
By choosing C.A as a career, People can secure their future as High pay and respect.
Also, we all know that the whole world works on money and that’s why there is always a need for someone who can manage finances of Business.
As the Chartered accountant, there are endless opportunities because it is a profession that never dies out whether there is a recession or not.
Key sectors for Chartered Accountants
- Business and Companies
- Chartered Accountants Firms
- Consultancy Firms
- Independent Practice
As we said earlier, there are endless opportunities. They can work in Companies and Big Multinational companies. Also, there are lots of firms who hire skilled C.A’s to serve services to Business.
If you want to work with many clients then Consultancy firms are the best option for you. These firm works on long term project with companies and also provide consultancy service. If you don’t want to work as an employee, you can practice independently.
Procedures to become certified C.A. :
There are lots of tests and examinations which had to be clear in order to qualify C.A. But firstly you need to clear 12th class or senior secondary with the minimum passing grades. Following are the exams which need to be clear:
- CA foundation course or CPT ( Common proficiency test )
- Integrated course on Information technology and soft skills (ICITSS)
- CA intermediate or IPCC course
- Articleship (3 years training).
- Advanced Integrated Course on Information technology and soft skills (AICITSS)
- FC (Final Course)
- CA foundation course or CPT ( Common proficiency test )
Firstly, after examinations of 12th, you had to enroll in the CA foundation course which conducts an exam named CPT (Common proficiency test) which is organized two times a year i.e. June and December.
It consists of four subjects:
Accountancy- 60 marks
Law- 40 marks
Economics- 50 marks
Quantitative aptitude- 50 marks
This test consists of a total of 200 marks and contains 200 objective type questions. It has 0.25 negative marking. A student needs 30% in each subject and 50% aggregate.
For example, if a person obtains 100 marks i.e. 50% but doesn’t get 30% in accountancy, then he would not consider as a qualified person.
- CA intermediate course
Now, this is the second step to become CA. After appearing in the CA Foundation or CPT exam, you had to enroll in CA intermediate course. After the CPT exam, 9 months remain for the CA intermediate exam.
This test is considered the toughest test, which will become a little bit difficult to qualify in the first attempt. A person needs good coaching and an efficient time table to pass this exam.
It includes two groups:
Group I: It includes four exams:
Accounts
Business Law, Ethics, and Communication
Cost Accounting and financial management
Taxation
Group II: It includes three exams:
Advanced accounting
Auditing and Assurance
Information Technology and Strategic management
This exam is also conducted two times in a year i.e. May and November. Also, to qualify in this exam you need to score 40% in each subject and 50% in aggregate. These exams are set 9 months after the CPT exam. Usually, students complete their coaching in 5-6 months, and then they start revising.
The things which most of the students lack in doing, they don’t solve sample papers available in the market and past question papers. So always give time to these samples before the exam. - Articleship (3 years training).
Now the third step for articleship training of 3 years if you clear either any of the groups of CA intermediate. It’s like the practical training you take from companies like internships.
Between the time of results of CA intermediate, Students should complete their Integrated Course on Information Technology and Soft skills (ICITSS), which is mandatory to complete before Articleship.
But, sometimes students join articleship and start preparing a group of CA intermediate; it becomes the toughest part and takes many attempts to clear the exam. It is good if you first clear your CA intermediate exam.
Now, sometimes, students confuse about whether to join a big company or any medium company. It seems good big companies for articleship as it makes a good experience, teaches too many new things, and can give great exposure.
But, if you join a big company, you may have to deal with more pressure. As there are more employees and have more work to accomplish. Sometimes, you have to miss the classes and you may not give them enough time for preparation. But, all this will become an experience after the CA final exam.
But, on the other side, if you work in medium-size companies, due to fewer amounts of employees, there will be less work and you can gain knowledge in any field rather than in any specific field like tax, auditing, etc.
You also can take leaves for their examination and can give enough time to work on your studies. - FC (Final Course)
Now, it is the time of the final step i.e. CA final exam after the articleship and CA intermediate clearance. It is the toughest part of appearing in CA.
It also consist of two groups:
Group I – It includes four subjects:
Financial reporting
Strategic Financial Management
Advanced Auditing and Professional ethics
Corporate and Allied Laws
Group II– It includes four subjects:
Advanced management accounting
Information System Control and Auditing
Direct tax Laws
Indirect Tax Laws
Students must keep in mind that they had to clear the AICITSS (Advanced Integrated Course on Information Technology and Soft Skills) before enrolling in CA final exams.
You can appear the CA final exam after Articleship or during Articleship when six months are left.
Sometimes, students drop to study the subject which consists of lower marks, but it is the biggest mistake students make because ICAI wants the student to have proper knowledge of all subjects. - Enroll as member of ICAI
After the clearance of the exam, now it’s the golden time for students. Student converts from the student to a professional person.
He now enrolls himself as a member of ICAI as the designated post of ‘Chartered Accountant’.
Official website: The institute of Chartered Accountants of India
Salary structure of Chartered Accountant:
The salary of the CA always depends on their experience as the other profession. It also depends on the number of attempts a person takes to clear the exams. Generally, after CA exam, A Person can earn approximately 60,000 to 80,000 per month.
With the increasing experience of time and knowledge, the salary also increases directly.
Job roles of Chartered Accountant
1. Financial accounting:
In this task, a Person who appointed as a CA manages accounts of the company, manage salaries and wages of the employee, Send out invoices.
2. Auditing:
Professionals perform exact auditing. Auditing refers to the process of investigating the financial records of the company to check whether it is accurate on the basis of rules and regulations as per companies act.
3. Cost accounting:
In this accounting, CA manages the cost of production as it is affordable or not and also monitors the expenses. He also forecasts the production and creates budget by keeping in mind all aspects of company.
4. Tax management:
Tax management plays a vital role in accounting because it is related to the government and all work has to be done accurately. So, CA files taxes of the company and gives advice to directors about tax if there is a change in environment.
5. Consultancy:
Consultancy is the only task which a person can perform only after experiencing it. In the case of companies, Consultants give advice related to financial planning, growth of the company, lawful aspects, and gives other information regarding company’s profit.
Conclusion
Hence, if a person has passion or interest regarding CA, then he/she can become CA with the proper guidance and coaching.
Also, students who are preparing for CA should polish their skills like Communication skills, etc.
Frequently asked questions
Ans: It was established on 1 July 1949 as a statutory body under the Chartered Accountants Act by the Parliament.
Ans: Documents that are supposed to be submitted at ICAI can be attested by a CA but any other documents with a CA attestation do not count.
Ans: ACCA (Associate Chartered Certified Accountant)
The Association of Chartered Certified Accountants (ACCA) has 586,000 members and students in 170 countries and is one of the largest and fastest-growing accounting qualification providers in the world.
Ans: Automation of the accounting system will not be much of a threat to a Chartered Accountant because Chartered Accountants perform duties that are required by an act of law. … Automation and Computerization are not just limited to industries and various class of companies.
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