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Chartered Accountant: Roles, Qualifications, Salary and Scope

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Jagpreet

13 June, 2024

Chartered Accountant: Roles, Qualifications, Salary and Scope

Are you planning to take up your career as a Chartered Accountant (CA)? Well, to become a CA you need to have all 3 – Passion, skill, and qualification. 

If you are wondering how to become a CA after 12th or graduation or even post-graduation, then you have landed on the right blog. 

In this blog, we will cover everything relating to CA what it really means, how to become a Chartered Accountant in India, its future scope in the market, and also the Chartered Accountant salary. So let’s get started.  

What is a Chartered Accountant?

A chartered Accountant is a financial professional qualified to execute specific accounting procedures. This includes certain areas of finance and accounting such as financial audit, accounting and reporting, management accounting, and applied finance or taxation. This designation is the same as the certified public accountant (CPA) in the U.S. 

Why Become a Chartered Accountant?

Chartered Accountancy is a highly valued and in-demand profession that opens doors to a range of exciting career opportunities. Becoming a chartered accountant blends formal education with mentored work experience. It helps individuals to have the ability to analyze and interpret business problems more efficiently and develop targeted and feasible solutions that cater to different industries.

Here are 5 reasons why you should take up Chartered Accountancy as a profession:

  • Versatile Career Opportunities: 
    Chartered Accountancy helps you easily push your way into the corporate world. Being a CA, you get the exposure to work with small businesses as well as big corporations.

    Moreover, you also get the flexibility to choose different career paths that align with your interest such as that of being a tax expert, financial counselor, financial manager, etc.

  • Secure Profession:
    Chartered Accountancy is a secure profession, as most businesses and corporations look for qualified experts in this field to manage their finances, tackle challenging business problems, and provide financial guidance.

  • High Salary:
    CA has always been a demanding career option due to its lucrative pay scale. The average Chartered Accountant salary differs based on location and individual experience.

    Typically a chartered accountant with 3 to 5 years of experience earns an average package of INR 6-8 lakhs. However, if you have other specialisations in finance domains or multiple streams of income, then you can easily earn more than the reported average pay.

  • Mobility in Profession: 
    A Chartered accountant enjoys high mobility in their profession; they can easily work around different roles, industries, and countries. With a broad range of skills and expertise, Chartered Accountants are always in demand in the job market.

    For example, CAs working for multinational corporations can easily move to other countries for their job purposes. Whereas, CAs as consultants move to give consultations to different businesses or CAs in public accounting move into the industry as financial analysts or controllers.

  • International Recognition:
    ICAI is an internationally recognised body that empowers Chartered Accountants to grab global job opportunities in different countries if they fulfill the eligibility criteria and visa requirements.

How To Become a Chartered Accountant?

To become a Chartered Accountant, your skills and interests must align with the domain of finance, business management, and accounting. However, if you are all set to pursue your career in CA, here’s the complete list to guide you through all the steps of becoming a certified CA.

1. Qualifications Required To Become a CA

You can choose to become a CA either after the 12th or after you complete your graduation or post-graduationThe path to become a CA is almost the same in both cases; however, a graduate or postgraduate can skip a few steps in between that is mandatory for a high school pass out.

  • Foundation Course: Steps To Become a CA after 12th  

If you are a high school pass-out and looking forward to joining the Chartered Accountant Course, first you need to clear a series of exams namely:

  • CA Foundation Course (also known as Common Proficiency Test)

  • Integrated Course on Information Technology and Soft Skills 

  • CA Intermediate (also known as Integrated Professional Competence Course)

  • Articleship (3-years Training)

  • Advanced Integrated Course on Information Technology and soft skills 

  • Final Course 

A step-by-step approach is required to go about all the exams mentioned above. Here’s how you do it:

Step 1: Enroll yourself in the CA Foundation Course after you finish your 12th.

Step 2: Go for the 4-month study course and then appear in CA Foundation exam.

Step 3: Once you clear the CA Foundation exam, enroll in the CA Intermediate Course.

Step 4: Wrap up the 4-week Integrated Course on Information Technology and Soft Skills. Remember this course needs to be completed before you start your Articleship.

Step 5: Complete the 8-month study for the Intermediate Course and take the exam. There will be 2 groups of exams – one needs to clear at least 1 group to continue with the Chartered Accountant course. 

Step 6: Join a 3-year Articleship after passing either group of the CA Intermediate Exam. (Make sure to complete ICITSS beforehand)

Step 7: Once you clear both the groups of the CA Intermediate course, get ready to enroll yourself in the final Chartered Accountant course.

Step 8: Complete the 4 weeks of the Advanced Integrated Course on Information Technology and Soft Skills (AICITSS) in the last two years of your Articleship, before going for the final exam.

Step 9: You can appear for the final exam either in the last 6 months of the Articleship or after you complete it. 

Step 10: Pass the final examination; and get designated as a “Chartered Accountant”.

  • Direct Entry: Steps To Become CA after Graduation or Post Graduation

If you are planning to pursue CA after completing your graduation or post-graduation, the steps are quite similar to the ones discussed for the 12th passout. However, the only criterion is that you have to score at least 55% in commerce graduation/Post-graduation or at least 60% if you are not a commerce graduate or post-graduate. 

If your graduation or post-graduation results fulfill the eligibility criteria, then you need to follow the below steps to become a successful CA.

Step 1: Register in the CA Intermediate Course

Step 2: Complete the month-long Integrated Course on Information Technology and Soft Skills. This course needs to be wrapped up before your 3-year training.

Step 3: Register for a 3-year Articleship/ practical training.

Step 4: Appear for the CA Intermediate Examination after 9 months of your Articleship/training. 

Step 5: Clear both groups of the CA Intermediate Examination.

Step 6: Once you clear CA Intermediate, register for the CA final examination. 

Step 7: You can complete 4 weeks of Advanced Integrated Course on Information Technology and Soft Skills (AICITSS) in the last 2 years of your Articleship.

Step 8: Appear for the final examination either after completing the Articleship or during the last 6 months of the practice. 

Step 9: Complete your 3-year practical training

Step 10: Pass the final examination and be designated as a “Chartered Accountant”.

2. Skills Required To Become a CA

To become a Chartered Accountant you need a good blend of both skills and qualifications. While you can qualify for the requisite examinations to prove your academic expertise, it is necessary that you also work on a specific skill set to keep yourself fitting into the current business landscape.

  • Strong Business Acumen: As a CA, you must have a strong understanding of data interpretation, financial concepts, and accounting principles. You should be able to analyse financial statements thoroughly in order to make well-informed decisions.

  • Analytics and Problem-Solving Skills: Having a strong analytical and problem-solving skill really counts when you are a Chartered Accountant. As a financial expert, CAs often deal with business challenges and complex financial situations and it becomes really helpful when you are good at analysing the situation and offering effective business solutions.

  • Communication Skills: CAs must have good verbal and written communication skillsas they often need to explain financial matters and scenarios to their clients, colleagues, and non-financial stakeholders.

  • Time Management: Managing time well is an integral part of the professional life of a CA. As an expert in the financial domain, Chartered Accountants often need to work on multiple assignments and meet deadlines, so they need to have strong time management skills. 

Roles and Responsibilities of a Chartered Accountant

The roles and responsibilities of a Chartered Accountant revolve around a diverse range of activities, such as tax planning, budget forecasting, capital budgeting, creating books of accounts, and more. Chartered Accountants not only help businesses keep track of their finances but also proactively take part in decision-making and economy-related actions to boost industrial growth.

The following are the most essential responsibilities of a Chartered Accountant:

  • Accountancy: Chartered Accountants keep track of any company’s income and expenses by preparing financial statements and accounts, bookkeeping, and doing complex financial analysis to make informed decisions.

  • Auditing: A successful Chartered Accountant also plays the role of a responsible auditor where he has to ensure that all the financial statements presented to the public are prepared following accepted accounting norms. 

    The goodwill of a company is based on its financial statements and a successful CA knows how to accurately assess a company’s assets through in-depth analysis and maintain transparency in financial reports.

  • Taxation: In the current business scenario, knowing about ongoing tax information is of paramount importance and financial accounting is an important aspect of tax calculation. 

    The role of a competent Chartered Accountant is to prepare tax returns, represent clients before tax authorities, and offer tax advice to his clients. Additionally, as a meticulous tax advisor, a CA also audits complex situations that have the potential to generate a large sum of revenue and optimise financial performance for best results. 

  • Cost Accountancy : When you consider cost accounting for a manufacturing or a service-providing company, Chartered Accountants play a critical role in estimating how much it will cost overall as well as at each stage of production.

    A CA is held responsible for offering the relevant management along with the costing information. His responsibilities include cost control measures and analysis of competitive sale prices. 

  • Executors and Trustees: A Chartered Accountant often collaborates with a lawyer or a legal firm and is called an Executor or Trustee. CAs assist solicitors and attorneys to aid them in their accounting jobs and provide expert financial insights regarding business transactions.

  • GST Compliance, Audit, and Training: Chartered Accountants have a detailed understanding of the GST-compliant process, the auditing of the relevant laws and regulations as well as the compliance for the management of clients’ accounts. 

Chartered Accountant Salary in India and Future Scope

The average Chartered Accountant salary is INR 11,50,000 in India. The salary of a Chartered Accountant is like any other profession that depends on the years of experience. Here’s a list of the salary range for a Chartered Accountant.

Experience  Annual Average Salary
0 – 4 Years  3 lakh- 9 lakh
5 – 9 Years 5 lakh – 18 lakh
10 – 13 Years  20 lakh  – 25 lakh

Conclusion

Being a CA is genuinely rewarding in terms of work versatility, exposure, and salary, but it takes a lot more than just qualifications and good communication to become a successful CA. At times, the journey of a CA can be both challenging and demanding, so it is better to set realistic goals, have an eye for details, and remember the long-term benefits of becoming a skillful Chartered Accountant.

FAQs

Q1. Is Chartered Accountancy a good career option in India?

Chartered Accountancy is a demanding career option both in India and in other countries of the world. After you have a CA degree in hand, you are guaranteed to land a decent job with a respectable position and a good pay scale. As a skillful CA, you can significantly contribute to financial planning, bookkeeping, accounting, etc.

Q2. What are the best institutions to study Chartered Accountancy in India?

The following are the top-tier institutions to study Chartered Accountancy in India:

  • Institute of Cost Accountants of India, New Delhi

  • Navkar Institute, Ahmedabad

  • Indian Institute of Finance and Accounting, Greater Noida

  • CMS For CA, Hyderabad

Q3. What is the average salary of a Chartered Accountant in India?

The average salary for a CA in India is ₹11,50,000 per year.

Q4. What are the career options in Chartered Accountancy?

You can find some great career options in Chartered Accountancy such as:

  • Cost Accountant

  • Investment Banker

  • Financial Analyst

  • Tax Manager

  • Internal Auditor

Q5. How many years does it take to become a CA?

The duration to become a CA is typically 4.5 – 5 years. The entire time involves completing the CA Foundation Course, CA Intermediate Course, a minimum of 3 years of Articleship, and the CA Final Course. 

Q6. What is the difference between Accountant and Auditor?

An accountant is one who maintains and analyses financial data, whereas an auditor reviews the accuracy of financial records and verifies if all the data comply with the tax laws.


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