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Are CAs readily acceptable in Corporate finance

sachit (SA) (24 Points)

01 December 2010

Dear all,

time and again i have wondered whether CAs can gain ready acceptance in the field of corporate finance? Can they actually be encouraged to pursue careers in aspects like capital budgeting, working capital management, investment analysis, and funding decisions? I have browsed through several websites of Investment banks and financial consultancies and have time and again found that there is an unreceding foothold of MBAs finance in the same. CAs are generally restricted to profiles of accountancy or functional areas such as accounts receivable and payable.Can anybody help me? I would definitely like to pursue a career in the former mentioned areas and I am dying like to see light at the end of the tunnel!

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5 Replies

Sanjeev Sandh (Senior Manager - Audit) (309 Points)
Replied 03 May 2011

CAs are not generally preferred for Corporate Finance jobs. The expertise which a CA has for Corporate Finance is nothing compared to what an MBA has.

This is what many youngsters do not realise: ALWAYS decide what you want to be/do before you start your CA.

Anyway, the right way out for you is to do MBA (fulltime) and have a career based primarily on your MBA (CA is, for you, admittedly a mistake).

By the way, the IIM is the most extraordinary "club" to be a member of.

Manoj Gupta (Corporate Finance Professional) (124 Points)
Replied 20 July 2011

Hi this is Manoj Gupta owner of www.camanojgupta.com

There is immense scope for a CA in Corporate Finance. Why a CA is acceptable

-understand the balance sheet. Can easily present the case before the banks/financial institutions and even equity investor. They can prepare DRP and Projections easily

-Knowledge of Income tax and other tax matters which again open their scope as Corporate Finance professional being this area is a very important in management consultancy in today scenario.

-Good liaising skills, hardworking and honest

-Know the ground realty. They make the projections which are based on ligics and show the reality

-Accounting standards and IFRS professional is very niche area of expertise

Now we should think beyond the accounting job which is very tedious.

sumit sehrawat (student) (70 Points)
Replied 21 July 2011

hi i have passed this may 2011final exam n i think finance field is only what i m thinking about. So i need ur help whether its a gud field or not for CA n i understand tht if i think about finance then why i did CA. i should have done MBA. But i now realize that finance has so much scope. Please Help. Thanks in advance.

Manoj Gupta (Corporate Finance Professional) (124 Points)
Replied 21 July 2011

Hi this is Manoj Gupta owner of www.camanojgupta.com

Sumit ji, CA profession has such a vast field that involves accounts, taxation, law and finance. Let we should discuss finance only. CA can do what a MBA can do.

-CA can do project appraisal easily being good knowledge of Balance sheet. They can evaluate the ratios easily, can make justifications and do presentation better

-Can head the NBFC/Bank/corporate world due to rigorous training they do

- Have the knowledge of accounting standards, taxation, law which a MBA does not have

-In Indian culture whenever you will see only CA's are appointed as Account, Finance, Treasury head

-As CA has done training, they understand the ground realty which helps to make business model better and genuine

-A CA can practice both ways as CA and/or a MBA ie. mix beg taxation, management, accounting, law and finance

-people trust a CA

-CA are now being appointed by investment bankers also

Hence a CA is better in all the ways then a MBA. We need to just improve our presentation skills, improve our personality