Role of Chartered Accountants to Indian Economy

Apart from being involved in debit-credit accounts, CA's play a very important role in nation building on a large scale. CA is the backbone of the economy and with financial expertise the country is getting in the right direction in various financial and economic measures to strengthen India's economy and strengthen the economy as the industry grows. Let us read about the Role of CAs to Indian Economy.

A CA contributes in the field of tax planning, capital planning, budget planning, financing or other activities, preparation of accounting books as well as in any field. In the current scenario, after the introduction of GST, the role of the CA has become very important. The role and experience of CA's are utilized as much as possible, starting from the preparation of laws and regulations to the implementation of GST.

Some of the practical duties of an auditor are as follows

• Accountability
• Social accounting
• Taxation
• Capital formation
• Economic planning

A chartered accountant is useful in nation building, and here are some of the roles he plays in the economic and financial matters of a country:

Dr. APJ Abdul Kalam has been well informed that accountants are partners in nation building.

A rational person can see the presence of accountants in any field. Whether budget planning, tax planning, bookkeeping, investment accounting, financing or any other activity, requirements for auditors exist in all areas.

Chartered Accountants play an important role in various fields. Conscious advice from a sworn Chartered Accountants is a prerequisite for drafting any legislation in the commercial, tax or legal field. When drafting legislation or other actions, the Chartered Accountants is one of the most important committee members. They have extensive knowledge of various important aspects that are important in shaping the law.

The role of auditors in tax matters deserves thumbs up. They are tax experts. Based on their insights, they help with tax planning. It is important to understand the difference between tax evasion and tax planning. Tax evasion is illegal and has criminal consequences. On the other hand, tax planning is legal, which benefits ordinary people and our nation. Tax planning is an analysis of a financial situation or plan from a tax perspective. In order for a country to develop, it is important for a country to develop its commercial sector. Certified accountants provide companies with the knowledge they need to keep businesses running smoothly.

Renowned entrepreneur Ratan Tata said, "I need MBAs to run my business, but a Chartered Accountants to teach them how to run a business." Having an experienced management accountant helps to run the business effectively. They handle corporate law and tax matters, assist with the creation and maintenance of books and other documents in accordance with applicable accounting regulations.

In the era of globalization, companies and even the government of our country are trying to merge with foreign companies. As each business unit goes global, many problems arise, such as complying with the Foreign Exchange Management Act or complying with government rules and regulations in each country where the company operates. International business also includes the inflow and outflow of foreign currency. An auditor helps the company with all these questions. A chartered accountant has experience with these laws and runs the company in all these respects.

They also help regulate foreign currencies by entering into swap agreements, futures contracts, etc., which in turn help regulate the inflow and outflow of currency in the country. The growth of a nation is directly proportional to the growth of its citizens. Investment opportunities are gaining traction every day. Rational investors want to invest in equity portfolios that have maximum returns. Both companies and investors must comply with investment laws, such as the rules and regulations of the SEBI Act 1992 and the SCRA Act. The government establishes various laws and regulations in this regard to protect the interests of investors and to support the country's economic growth. In this area too, an auditor plays an extraordinary role. They provide the necessary knowledge to investors and companies. They even play a role in formulating investment law guidelines. We all know that the e-commerce sector is also growing faster. Google tax equalization, various regulations from TDS, TCS attract e-commerce industry. A chartered accountant helps this sector by providing adequate guidance and solving their tax problems.

The next major area where the role of Chartered Accountants is important in nation building is preventing corruption, malfunctions, cleaning windows, detecting corporate fraud, and so on. The nation will only grow after corruption ends. Auditors help minimize corruption by complying with rules and regulations and drawing attention to wrong practices and their criminal consequences. In a company, the Chartered Accountants (auditor) is required to provide an assessment of the truth and reliability of the annual financial statements. Auditors try to find wrong practices by management or employees and it is their responsibility to provide an opinion. In accordance with an order from the Comptroller and Auditor General (CAG) of India, the auditor also gives his opinion on the financial statements of state companies. Auditor reports strengthen investor confidence and help limit failure.

A chartered accountant is an important pillar of a country's economic growth. The opinion of auditors in solving financial problems differs from others due to their knowledge and experience in financial taxation, stock market and corporate law matters, FOREX and others. It even helps ordinary people or the people of the country to understand the rules and regulations.

So it is right to say that accountants are partners in nation building.