My dear fellow students and newly qualified C.A's. This is my first article on caclubindia and so please forgive me for any gramatical and editing mitakes. Although It was my second attempt in CA Final and despite not passing a single paper I am not worried about myself or my future. But many of you despite becoming C.A's are worried about the supposed decreasing value of our profession.
After reading many people on forums about the pathetic placements of ICAI campus, I was too worried. But worry doesnt solve anything an so I sat and got to thinking. What can and cannot a CA do??? well I am compiling a list of the different things and the money we get for those services as our C.A profession. Remember, I have yet to pass Ca final and these figures are generally applicable for a CA who is practicing for 1-2 years as the short term picture doesnt matter. anyways thats what i think:-
1.) Audits - even someone who has a turnover of 60lakhs has to get audited and there are tons of business' whose profit will be less than 8% of turnover. These Audits I am talking are of Individuals who come u/s 44 and so doesnt count in total no. of audits. These audits can be completed in around 2 hours each for 3 days and the avg. rate of the same is going in market as 7000/-
so lets assume we take these kind of audits around 15-20 people in whole year. so our income from that will be 7000x20 = 140000 avg.
2.) Certification works - We know that the certificates issued by a CA are compulsory in many areas such as excise and many Banks demands certificates signed by a CA. Now I dont have any idea how much these certificates go around for but even if the market doesnt believe in CA profession integrity everybody wants to cover their ass legally (mind the language, sorry) so these certificates are very necessary and never going out of demand.
So lets assume the average Income per year out of them be 30000/-
3.) Income tax filing - The rate for Income tax filing is going as 1000-1500 per file. around lets say 100 people you have filed for in whole year than the income is 1000x100 = 100000
4.) Taxation - The taxation work is enourmous and I am not even gonna go into details of it. But there is excise, customs, vat, service tax, tds returns, etc. Who do you think people comes to when they want their work done in any of these areas.
5.) Internal Audit - I dont know the Income but well the internal audit work is also required by many comanies.
6.) Tution - Now This is becoming very popular even amon CA's. Us C.A's can go and give lecture on Accounts, Audit, DT, IDT, FM,Costing. Lectures and tution on any of these are childs play for a C.A
A two hour lecture will earn around 1000rs and if we give avg. 10 lectures per month than
1000x10x12 = 120000
7.) Compliance - There is compliance work to be done in every company and many firms. well many companies prefer their compliance work to be done by C.As as they already need a CA for audit and well Its better to give the compliance work to that CA too. so these earn us a hefty amount each year.
8.) company audits - No Need to say anything as they are the biggest earners.
so friends I have enumerated from point 1-6 a income of 390000 that too earned in part time giving around 3-4 hours after office. surely we can do that. And for whoever thought that you just have to do hardwork in those 4 years of study and then puri zindagi aish then they are wrong. There is nothing like that anywhere in the world and it is just a fantasy.
But not including point 7&8 I have proved that a CA can earn 3-4lakhs per annum. and after Including point 7 & 8 the earnings go many times. These are only the ones I can think on the top of my head.
There are many more advantages of Ca Profession:-
1) If someone is CA and was doing job till retirement he can even earn after retirement by doing practice and will have to not invest anything. so your budhapa is secured as much as it can be.
2.) Demand of CA's outside India such as UAE(Dubai) & Australia is wild and our Institute has MOU with institute of many countries so practicing is very easy in many countries.
3.) Almost Nil investment considering the return not only in studies but also in practice too.
And those who dont want to practice you look at the salary of very prestigious Institutes like IIM and Xaviers etc and say their placement is very high. Well see how much MBA they are producing and look at other MBA colleges which are slightly less reputed. the less reputed colleges' pass out students dont even get 30000/month salary even in their second year of job. Thats the actual condition. The IIM's have very few students as compared to CA.
And even after that look at the salaries of CA who have experience in their particular industry for 3-4years. Their salary becomes 3 times by the third and 4th year and MBA's doesnt have that much multiplier. And really do u think after doing CA u are only going to earn a salary whatever it is.
Lets suppose one is earning salary of 240000
I think he definitely can take tutions. that add some money.
Also take a partial COP and become partner with a Practicing friend of yours. He signs and bring clients. you do the audit work after or before office. Its not like you are unqualified.
So This article may have become too lenghty and may seem like a Rant because it is one. Well pls. give me suggestions if anything is wront with my thinking.
P.S : India being in compliance with WTO has to by 2015 introduce GST and many other tax and audit and accounting reforms. and that my friends will surely replenish the demand of CA's if it ever Decreased.