How to become a chartered accountant?
Every year millions of businesses are born. They require a talented chartered accountant to take care of their business operations concerning accounts and finance. Therefore, millions of chartered accountant jobs are created to meet the demands of those businesses that are willing to appoint a professional CA to keep away the consequences of the operations of the complex accounts. Hence, the question, “How to become a chartered accountant”. Well, going ahead in the article, I have information consolidated comprehensively relating to the questions that an aspiring CA candidate would generally encounter.
It is the Institute of Chartered Accountant in India that takes care of the department of Chartered Accountancy. As a chartered accountant, you either can get a job or start practicing privately. Getting a job, in no sense, is less preferable provided Corporate Organizations are bound to take account decisions seriously and hence offer competitive remuneration. The salary of a chartered accountant, thus, becomes lucrative enough to choose to join a corporate firm.
What does a Chartered Accountant do?
A chartered accountant can be appointed to do one or more jobs as mentioned below:
- Auditing - You will be auditing the financial statements of your organization to ensure they accurately represent the translation and other financial businesses.
- Managing tax - You will be taking care of the tax structure of the organization and ensuring that they are in compliance with the tax laws.
- Financial reporting - You will be required to present the organization’s financial information and performance every quarter, six months, or year as per the organization’s rules.
- Cost accounting - As a cost accountant, you will be taking care of the organization’s budget, operational cost, and other costs incurred.
- Budgeting - You will be forming plans to spend the organization’s budget so that the expenses and income are balanced.
- Forecasting - You will be predicting the development in the organization’s business for sales, profits, and expenditures.
How to become a Chartered Accountant? - A step-by-step guide
In India, the Institute of Chartered Accountant in India (ICAI) conducts examinations for chartered accountancy. And as per records, every year over 1 lakh aspirants appear for the examination.
To become a chartered accountant, you must clear the wisely posed hurdles in the given order:
1. Register and clear CPT
Common Proficiency Test (CTP) is the first, conducted by the Institute of Chartered Accountant in India to test one’s eligibility to sit for the second stage of examination called Integrated Professional Competence Course (IPCC). You are required to register for CPT and appear in the same to qualify for IPCC.
2. Register and clear IPCC
After qualifying in CPT, you can apply to appear in the IPCC comprising of 7 subjects split into 2 groups. You must qualify in any one group to move to the next level.
3. Attend ITT and Orientation
ITT stands for Information Technology Training. It is compulsory for a candidate to take this training and attend the orientation. The program is designed to be in favour of aspiring CA candidates and will add skills and knowledge to your understanding of accounting and the accounting industry.
4. Register for Articleship
If you are eligible to register for Articleship, it is evident that you have sailed through most of the journey. However, Articleship is a serious business that you must accomplish. It is during the Articleship period that you will receive most of the exposure before you step into the world of accountancy. During the Articleship, you must receive assistance from a Chartered Accountant who is practicing. The Articleship period ends in 3 years. It is the Articleship period when you will gain skills to handle clients and accomplish projects.
5. Crack the final
Only after you have successfully taken up the Articleship, you are qualified to appear for the final CA exam. You must take the examination during the last six months of the Articleship period. Clearing the final CA exam entitles you officially the title of a chartered accountant.
Salary of a Chartered Accountant in India?
Remuneration has never been a matter of dissatisfaction for chartered accountants. They earn between 6 to lakh per annum. Also, with growing skills and expertise, the salary of a chartered accountant in India can be up to 30 lakh per annum.
Scope of Chartered Accountants in the banking sector
As opposed to CA’s in corporate organizations, the job responsibilities of CA’s in banks are not restricted to the financial sphere. Other duties may include credit, investment, and wealth management. Also, risk assessment, business analysis, and portfolio management. Chartered accountants, thus, can find their role and opportunity in diverse fields and spheres that best suit their willingness and interests.
Benefits of practicing independently
Meritorious chartered accountants can find the huge scope of establishing their own business. Certainly, you will be your own boss and can dictate your own terms both in personal and professional space. Mostly, your projects will require you to help your clients as a tax advisor and account consultant.
Needless to say, multinational companies offer able chartered accountants positions of responsibility in nations around the globe owing to the tie-ups established by the Institute of Chartered Accountant in India. Among the countries that are most appreciated for wide opportunities of Chartered accountants are the USA, Canada, and Japan.
Future of CA after 10 years
As a qualified chartered account, you are recognized as a member of the Institute of Chartered Accountant in India. Undoubtedly, you will have a great future in the next ten years. Beginning your career as a CA today, after 10 years you can earn up to 20 lakh per annum working with a corporate organization or independently.