Most favorite career choice in India is CA (Chartered Accountant). It offers a good salary, career growth, respect among people. CA (Chartered Accountant) is the only person who authorized Financials statements of a company whether it is private companies, Govt. companies, individual companies, Small companies, firms, etc. CA authorized Financials statements at the time of auditing in any companies or firms. Also, It’s the toughest course to clear. Currently around 3 lakhs CA in India. And ICAI is only authorized all over India who conduct examinations and issue a chartered accountant degree for you.
There are numerous career options related same. Many professional courses CA, CMA, CFA, FRM, management degree’s that is MBA, B. Com, BBA. One just needs to be sincere with the subjects. So, today we will be discussing what and who is CA, how to become CA (Chartered Accountant.)
What is CA?
It is the management of finance for companies or firms. It also have include managing companies or persons’ accounts, taxation, budgeting, auditing, and business strategy, etc. You probably learned about what is ca. If we more explain it, CA’s are professionals, that work in different sectors like the economy, managing finance of an entity, helping out in money management, providing financial advice, etc. Also, an Entity can be an individual, business, organization, company, government. Also, Now you understood how it can work. Let’s check who is CA and who provides a degree.
Who is CA (Chartered Accountant)?
These are professionals, that are controlled by the Institute of Chartered Accountants of India (ICAI). Well, this body was introduced in the year 1949 by Chartered Accountants Act. Candidates who have completed this course can add a prefix to their name as “CA.” furthermore, after 5 years of full-time practice, they use tag themselves as “FCA.” Here, the accountant works with the spectrum of accountant-related activities. Acts, as the heart of businesses, regardless of how big or small it is.
Responsibilities of a CA
- The first and biggest duty is to manage the financial system and budgets.
- Then, one needs to provide financial advice as well as undertaking a financial audit. Checking the company financial statements.
- Adding to this a CA needs to liaise with the clients and provide them useful financial information.
- Also, reviewing the company’s system and analyzing the risk factor. Also performing some tests to check financial information and system.
- Furtherly, to guide tax planning, why it is necessary to implement, and other details.
- And lastly oversee the duties of the junior colleagues, their work, and analyze it.
To be frank, this list will continue in a long way. As there are several responsibilities of a Chartered Accountant. But, here mentioned duties are the essential ones. So, now we should move on to know what are the educational qualifications necessary for become a CA, other selection criteria, and so on.
Educational Qualification/ Eligibility criteria
There are several levels of becoming a CA, just like a game has. The only thing which one needs to focus on is consistency. Consistency and regularity are key to success.
- Firstly, students from any stream background can take up this professional course.
- They are eligible for getting registered for the foundation test. But are only eligible for giving the test after completion of class 12. Also, there is no problem if one registers after passing of 12th standard as it’s your decision.
Well, these are the basic ones for just fulfilling the criteria of eligibility. But, don’t worry we will be discussing the next steps to reach our dream job implying what all levels are included to become a CA.
Different levels of Chartered Accountant
Level 1
The first level as said above is to clear the foundation course. To clear FOUNDATION, the candidate needs to score at least 200 marks out of 400 marks. This means they need to score at least 40 marks in each subject and get an aggregate of 50% to get eligible for INTERMEDIATE. It’s good if you score more, as you’re the only beneficiary.
Level 2
Here, the next level is to clear the IPCC, that is stands for Integrated Professional Competence Course. Better known as inter. This constitutes two groups. Majorly group1 and group2. Here, the candidate can both the groups at a single shot or can give both of them separately. Depending upon the preparation one should decide.
Level 3
On clearing the IPCC level or course, now the student is eligible for an internship in companies. And this is known as Articleship. Articleship is a period of a total of 3 years. Here, the candidate needs to give interviews to companies such as KPMG, Deloitte, EY, Shri Guru Kripa, etc. You are lucky if you got selected in one of the big 4 companies, or big 6-10. Otherwise, you need to opt for some other small established firm. The stipend structure of big 4 to 6 is Rs.10,000. Whereas, the stipend structure for the rest is Rs.2,000.
Level 4
This is the last and final step. Well, this step is known as the CA Final. One gets eligible for appearing in this exam during the last six months of Articleship. The one who clears this becomes a Chartered Accountant.
Well, these are the 4 levels. Seems long, but not actually. If you’re determined and ready to do hard work as a slave then you can clear all these 4 steps in one go, which will take up a total of 5 years. So, choose only if you’re willing. Now, knowing a brief of the levels we shall discuss the syllabus structure of the different levels.
Syllabus Structure for Chartered Accountant
Foundation
- Principles & practice of accounting.
- Also, Business laws.
- business correspondence & reporting.
- Business mathematics, statistics & logical reasoning.
- Also, Business economics & business commercial knowledge.
Integrated Common Competence Course (IPCC)
Group 1
- Accounting.
- Corporate and other laws.
- Cost and management accounting.
- Taxation.
Group 2
- Advanced Accounting.
- Auditing and Assurance.
- Enterprise information system and strategic management.
- Financial management and economics for finance.
CA final Level
Group 1
- Financial Reporting.
- Strategic Financial Management.
- Advanced Auditing and Professional Ethics.
- Corporate and Economic Laws.
Group 2
- Strategic Cost Management & Performance Evaluation.
- Risk Management.
- Financial services & capital markets.
- International Taxation.
- Economic laws.
- Global financial reporting standards.
- Multidisciplinary case study.
- Direct Tax Laws & International Taxation.
- Indirect Tax Laws.
These are the eight papers which carry 100 marks each. So, you need to clear each paper with at least 40 marks and an aggregate of 50% overall. Also, better if you score more. In addition, this system is the same for Foundation and IPCC as well. And this is the overall syllabus structure of all 4 levels. Now, we should move on to know what are the job roles of a Chartered Accountant.
Job Roles for CA
A Chartered accountant can find his way for employment by giving resumes for the following job offers.
- Auditing Firms.
- Public Limited Companies.
- Legal Firms.
- Patent Firms.
- Portfolio management companies.
- Investment Houses.
- Public and Private sector banks.
And the top recruiting companies are Deloitte, EY, Indian Oil, KPMG, Sri Guru Kripa, Real-time tax sutra services, Bhatia and Bhatia CA, SS Kothari Mehta & Co, and many others. Coming to the point of salary offerings, a beginner will get paid near about a package of Rs 3.5 lakh p. a, then reaching the intermediary level one can get paid of Rs 7 lakh p. a and with enormous experience, the candidate can reach to a level of Rs12-24 lakhs p.a.
Conclusion
To become a professional Chartered Accountant, you need to pass and come across numerous hindrances. As it is not as simple as getting a coffee. One needs to work hard, be sincere with his/her studies, be determined that he “has to do it” and finally should always be motivated. Also, get a clear picture of where you want to be, what you want to have in your life, and finally, put that in a single frame. This will work for you. Nevertheless, even if you fail, no worries try once again, give a second attempt, if you fail again, then try once again. Keep trying as professional courses are not as easy to succeed. One day you will surely taste success. Also, choosing something different from others will never make you lose. Do, what you want but don’t waste money. Make it worth it!