The revenue from Indian finance and accounting services is increasing year-on-year. This sector is expected to increase by 7% as per the report published in 2017. The Institute of Chartered Accountants of India or ICAI is the 2nd largest body for professional accounting and financial services in the world and holds approximately 2,82,193 members as per 1st April 2018 survey. Also, it is the only licensing body for the accountancy and financial audit profession of India.
Owing to such growth, the number of jobs offered to 6,646 qualified CA was calculated to be 3,815 in the placement cycle of ICAI in the year 2018. Besides, the implementation of GST has also fuelled the growth in this domain and has opened doors of opportunity for the CA students. Hence the growth in the number of start-up CA firm has also sprung up.
However, irrespective of the scope and opportunities individuals are required to measure their steps while starting their venture to avoid any professional issues and financial losses. Keeping such problems in mind given below is a guide to starting a new CA firm that you should consider.
1. Qualification
CA practice requires efficiency and knowledge as it involves you to manage the financial portfolio of your client. Thus, you must hold the necessary expertise and skill. You can also work in a CA firm as an employee under a professional and practising CA to know the working process and gain the experience required to start your venture. Having an experience will also help you understand the role of a CA accurately which will help you achieve preference quicker.
2. Target domain
The role of a chartered accountant is not restricted to auditing and accounting. CAs have a vast area of practice including taxation, business management, forensic accounting, financial consultation, international taxation, enterprise risk management, etc. Hence, you must analyse the services that you are expert in and would like to provide and select your target audience accordingly.
3. Software
There are several accounting software in India that you can make use of. Such software helps you better complete accountancy tasks, reduce hefty paperwork, store data for future reference.
The top 5 accounting software packages in India include Tally.ERP 9, ZOHO Books, QuickBooks, Profit books and BUSY.
4. License
While opening your CA firm, you are required to attain a license for your professional practice. You can obtain a license from the Institute of Chartered Accountants of India also known as ICAI.
5. Financing options
Opening a firm of your own will require considerable funds as several costs like a workspace, infrastructure, employee fees, etc. are involved. Do make sure to analyse your available funds before starting your firm to avoid financial issues.
In case you lack funds, you can explore various financing options such as liquidating your savings, advances, etc. Several financial companies offer professional loans to help the aspirants with the required funds. NBFCs like Bajaj Finserv provide Loan for Chartered Accountants at an attractive interest rate against minimal documents. They also offer substantial loan amounts of up to Rs. 35 Lakh, prolonged loan tenor of up to 60 months, instant approval, faster disbursal, collateral-free loans, online account access and other lucrative benefits.
They also provide pre-approved offers to ease the hassle of the application process and to save your time. These offers are available on multiple financial products including home loans, personal loans, business loans, etc. You can conveniently check your pre-approved offer by visiting the official website of your lender and sharing minimal details like your name and your phone number.
Besides, you should also have a healthy business plan that would help you enter the competitive market and get a hold of a proper client base. Furthermore, refrain from charging hefty service fees as it will make it difficult for you to fetch clients. Also while you use any accounting software in India do make sure that you know the accurate usage method to avoid issues in your workplace.
