This article is penned down by Pranjali Aggarwal of the University Institute of Legal Studies, Panjab University, Chandigarh. It elucidates different opportunities that can help a CAS to earn additional income.
Table of Contents
Introduction
Chartered Accountant (CA) is one of the flagship qualifications that enjoy a statutory monopoly in the audit of financial statements under the Companies Act of 2013, Income Tax Act, 1961, etc in India. The CA course was introduced in India in 1949 after the enactment of the Chartered Accountants Act,1949. The Institute of Chartered Accountants of India (ICAI) is the regulating body for the profession of CA in India. The CA course basically comprises education in the field of business, taxation, accounting, and auditing. The financial statements audited by a CA are presumed to meet the general principles of accounting standards.
Conventional job opportunities for a CA
After completion of the CA course, there are primarily the following opportunities that one might opt for according to one’s interests and suitability:
- Self-practice
CA can start their own practice and become a practising Chartered Accountant, it refers to the person who is a member of the ICAI and is holding a certificate of practice (COP) granted under the provisions of the Chartered Accountants Act, 1949 and includes any concern engaged in rendering services in the field of chartered accountancy. The COP authorizes CA to undertake audits on his own account.
- Join CA firms
Some CAs join existing CA firms rather than opting for self-practice. This will help the fresher CA to have clients at the initial stage of the career and build his goodwill in the market.
- Work in the corporate sector
CA can work in the corporate sector as well. They generally work at tip-notch positions of the accounting & finance department of the firm. There can be different roles for which they can be employed like accounting, auditing, planning of financial strategies, etc.
Various opportunities for a CA to earn additional income
Apart from working in conventional jobs, a CA can extend the following services to earn an additional income:
Tutor
One can impart services as a tutor after completion of CA. In these modern times, one can conduct classes from the comfort of their homes without obstructing their main jobs or practice. One can work as a tutor for online platforms that provide coaching for CA or even start their own academy to provide coaching for CA aspirants. They can even curate extensive courses for the students in specific subjects and sell them either themselves or in collaboration with any online platform. Thus, one can earn when any learner buys the courses. This can be a part-time opportunity to earn additional income for CAs.
CS with CA
CA and CS (Company Secretary) have many overlapping subjects and thus, makes it easier to pursue CS along with CA. After completion of CS, CAs have better knowledge and grasp of corporate law which is an asset for their job. The person can either apply for the CA plus CS position in the company or either impart the service as CS on an assignment basis.
Advantages of CS with CA
- Job prospects – Companies prefer to appoint one person with holistic knowledge rather than two individuals.
- Hike in salary – As one person is fulfilling the role of two, the companies grant a higher salary package because they need not pay two individuals. This is a win-win situation for both the company and the professional because for the former, it is cost-effective while the latter gets a lucrative package.
- Polishing skills – CS provides a CA with the new perspective of law and acquaints the person with the nitty-gritty of law. Thus, helping a CA to polish his practical skills which will yield benefits in the long run.
Average salary
The average salary after completing CA plus CS is around 25 lakhs.
CA and CFA
The person owning qualifications of both CA and CFA ( Chartered Financial Analyst) will be the expert in the finance sector with impeccable analytical skills and thus can be employed in managerial positions in the company. According to Mr. Yogesh Sakunia, an equity research analyst, “a CA might get you the job, but a CFA will keep you there.” CFA is like icing on the cake that increases one’s worth and they are remarked as ‘demigods’.
Average salary
The person after completing CA plus CFA and having experience of 3-6 years is entitled to get the salary of around Rs 1.2 lakhs to Rs 2 lakhs per month.
Book author
CAs who have an interest in writing can write books either for CA aspirants or for the general public. This is a great source for additional income as once a book is written, one can either earn through sales of books or can sell books to the publishing house earning a lump sum amount.
Average earnings
The author on average is entitled to 7.5% of the price of each book sold.
Help a start-up
CA can play a huge role in the incorporation of a start-up. Following are some functions played by CA:-
- Help in the registration process of the start-up by preparing documents like Memorandum of Understanding, partnership deed.
- They even help in raising funding for the start-ups.
- They help in managing shareholdings, projections, and cash inflows of the start-ups.
Thus, one can earn a handsome income by providing such services with a full-time job.
Make videos on Youtube
Youtube is one of the leading social media platforms and is proving to be the golden opportunity to prove it big. Youtube can generate promising amounts. CAs can make educational videos or portray their passion through videos which can be an excellent source of income.
Average income
Youtube pays the Youtuber through the income generated from ads based on the views on the videos. For eg – if the video has 1000 views, one can earn Rs 200 to Rs 500 and if it has around 100 k views, one can earn Rs 2000 to Rs 5000.
Investment in the stock market
Investment in the stock market can help in earning through the thriving economy. A CA can study the financial status of the company and even know the factors that will help in its growth or downfall, thus, can recognize companies that will yield profits. One can invest in any company accordingly and thus earn additional income.
Become a partner in the business
CAs are well-acquainted with the working of the business and can help any business achieve heights. Thus, one can opt to become a partner in the business and can enjoy profits. The partners can divide their work according to the expertise and thus, can divide the shares in the business accordingly.
Work as fraud investigators
CAs after pursuing a course on forensic accounting and fraud detection can work as fraud investigators for the company. Many companies and governments appoint CAs to look into the books of the companies to investigate the fraud. In every sector, there is a possibility of occurrence of fraud and thus there is a huge market for fraud investigators. One can function either as a full-time fraud investigator or take up assignments.
International opportunities
Indian CAs are eligible to practice in various countries as the ICAI qualification board is recognized by countries like the UK, Dubai, Australia, etc. Thus, one can extend services internationally and earn additional income. Like in the year 2017, Indian CA helped UAE in the implementation of VAT. The earnings in these cases depend on the task as well as the experience of the person.
Portfolio management
Portfolio management helps in the investment allocation of the business by prioritizing the objectives of the business and studying the risks involved. CAs can offer the services of portfolio management after getting a professional license from the Financial Industry Regulatory Authority (FINRA).
Average salary
The average salary of the portfolio manager is around Rs 8 to 10 lakhs. Some take 1% of the total amount managed as their fees.
Information system audit
Information system audit refers to the examination and evaluation of the information technology infrastructure, policies, and operations of any organization. These are conducted to check whether the data integrity is maintained and the data of the clients is safe or not. One can function as an IS auditor after completing a Diploma in the Information System Audit offered by ICAI. Thus, CA can generate additional income by taking up Information system audits.
Tax return preparer
An Income tax return preparer is a professional who assists people in filing their tax returns and is approved by the Income-tax department. As per the Tax Return Preparer Scheme, 2006, CA can also act as a tax return preparer. CA in job can also extend services of tax return preparer.
GSP or GST Suvidha Provider
GSP refers to the exclusive entity that helps businesses, taxpayers, and firms in accessing GST portal services. GSP helps the people to comply with all the rules and regulations of the GST law. A CA can act as a GSP and assist people in using the GST web portal easily.
Online services
CAs can extend their services online and thus can earn more from the comfort of their home. The person can have access to international clients also. This will not only raise one’s earnings but will also help in increasing market value. The income usually depends on the fees taken by a CA per task.
Conclusion
CA to business is like a doctor to human beings. CA is one of the professional courses that have a guaranteed handsome income after its completion. The average salary for a fresher CA is around 6 to 10 lakhs and will increase over time with experience and skill. There are myriad other opportunities that can help a CA to earn additional income and not affect the present income. The only thing that should be constant is hard work which will surely lead to success.
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References
- https://cleartax.in/s/gsp-gst-suvidha-provider
- https://www.livemint.com/Money/h9fS6PMRoCXhYbEeA9qKmL/Dejargoned-Tax-return-preparer.html?facet=amp
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