Chartered Accountant in India is considered one of the most prestigious jobs. Still, it might have often crossed your mind what exactly is the job of a chartered accountant and how it is different from being a normal accountant. Well, to answer that in simple terms, all we can say is that Chartered Accountant is a internationally accepted and designated post and is generally directed by a statutory body like, for example, the ICAI(Institute of Chartered Accountants in India). As per national and international laws, a chartered accountant has many legal autonomies and other technical, analytical, and managerial knowledge over any other accountant. Now let’s look into the all the CA services and duties :
Services provided by a Chartered Accountant :
To start with, accounting is not to be confused with bookkeeping. Accounting in itself is a broader concept. It includes everything from recording, preparing accounts, and preparing quarterly and annual financial statements, financial analysis, and managemental advisory. Chartered Accountants have the most knowledge about accounting and are entitled to a company’s accounting system. CA s can also be outsourced through online CA services and can be entitled to accounting duties of a company.
Auditing is probably the most important task performed by a Chartered Accountant. Auditing can be done in two ways, either it is entitled to the employed CA of the company or performed by an outsourced CA from CA services online or offline. Auditing largely constitutes analyzing and determining the firm’s accounting principles and financial ratios. The job of a CA is to make sure that the financial statement produced by the firm is authentic, transparent, and doesn’t have any loopholes within it. It is important to notice that only a CA is legally bound to perform the act of Auditing.
The Income-tax law says that a professional turnover of 10 lakh rupees and a business turnover of 40 lakh rupees must audit their financial statements and produce an income tax file. As the auditing can only be performed by a CA and has all the keen details of the financial books and statements of a firm, he/she plays a very important role in producing the income tax file of the firm. The firm can also reach a CA for income tax-related advisory; there are several types of taxes to be paid and concepts to be addressed before the final audit and payment of taxes.
In the financial accounts of a firm, there might be some lack of authenticity or accuracy regarding the data which is put forward and the real amount; hence to avoid such discrepancies, there is a need for proper investigation. Such investigations can only be performed under the expertise of an abled CA.
Management accounting is a separate field of accounting altogether for which we need expertise people, which include CA s. Though it is a topic of deeper and more in-depth understanding, we need to know that a management accountant’s role is an analytical study of books, several accounting ratios, projecting prospects, and taking decisions with the help of such information for the future betterment of the firm.
A CA can always work as a management consultant as he has the most knowledge in the field of accounting and management. A management consultant’s job may vary from consultation regarding management, accounting, auditing, taxation, and cost accounting to resource management, operational control, financial planning, policies, takeovers, or expansion schemes.
Valuation of Share
A CA is entitled to make the proper valuation of shares of a business during the formation of a company, revaluation, amalgamation, or reorganization as the right valuation of shares requires technical and financial knowledge concerning prospects, management, and accounting ratios, financial statement of the firm.
Cost accounting is another form of accounting that involves evaluating the cost of production and manufacturing. A CA is entitled to evaluation, procurement, and process of the right cost for goods or services produced by a firm.
By now, you have known that a CA carries enormous technical and managerial knowledge and has the upper hand over any other position in the field. Not to miss out that becoming a CA takes an immense amount of patience and hard work, but the hard work pays off. Online CA services are available for startups and businesses for those who want to consult a CA for the first time or are not yet aware of the field. I hope this article helps you understand the basics of what services a CA provides.