Need Of Chartered Accountant In Business
Written by gkkedia Dt. October 16th, 2019
Delhi is the capital of the Republic of India and also a state for administrative purposes. It is one of the largest metropolises in the country. Delhi shares its borders with the states of Uttar Pradesh and Haryana. It is the centre of international politics, trade, culture and literature in India.
Delhi can be viewed as a cobweb of small businesses supporting larger organisations to run the economy.
Small businesses are the lifeblood of many countries’ economies. Because of this, governments like to encourage their growth. As a small business owner, accounting services in India becomes one of major headaches for the entrepreneur of such small businesses. It is where the need of a professional who can take the entire burden off the entrepreneur sprouts up and also where the term “Accountant” comes to mind.
In India, accountants are regulated by professional body ICAI which looks after accounting, taxation and several law qualifications and try to maintain high professional standards. In India these accountants are called Chartered Accountants. Chartered Accountants (CAs) are highly qualified professionals who have completed three degree-level study along with workplace experience and a professional competence program. Given the vast experience and expertise that a Chartered Accountant has, they can be highly able to add value to your business right from the start. And if you expect your company to grow and sustain in the market in the long run, it’s a good idea to hire a professional accountant (CA) at the beginning rather than later on.
A CA can become your income tax return consultant, can tackle all the hassle accounting services carry with them and obviously be a handy tax consultant/advisor. Of course, it is possible to use accountants who aren’t, Chartered, but it might an unwise business move. Tasks such as accounting, income tax returns and general financial management might not require a certified or chartered accountant. But you will almost certainly need one if your company grows to the point when you need a loan, or if you’re ever audited.
Reason Why You Need A Chartered Accountant
Suggest accurate and informed advice:
It is guaranteed, if you are using a chartered accountant, the advice provided by him would be confirmed to accurate and informed. Also, the aspect where your money is involved, you would love to know whether your money is in safe hands or not? ICAI Guidelines for a chartered accountant, he/she must follow professional development standards and must be up-to-date with the knowledge and skills.
A Chartered Accountant comes equipped with various bows and arrows up his sleeves such as:
- An expert in accounting services.
- A brilliant tax consultant.
- An advisor for income tax preparations and what not.
Supervised by professional community:
The benefit of working with a chartered accountant is that one will get services from a professionally qualified and refined individual who complies with a code of ethics and professional standards. Also, a CA remain blessed with certain policies, procedures, professional indemnity insurance, complaints and disciplinary procedures. Not even this, they have a look at compliance and quality reviews of their own professional practice.
Boosted with Experience:
Qualifying as a chartered accountant is not an easy task. It is possible that your accountant has worked with different clients across a range of industries. Have experience of working with businesses that are high performing to those under financial pressures. But the chartered accountant has acute business awareness and strong personal judgement. Also, they have specialization in a particular field or industry and it benefits you with expertise that relates to your scale and type of business.
Well, Honesty matters:
There are maybe some circumstances that your accountant is handling both of your personal and business finances, in such a situation you required to have faith that they can be anything trustworthy and discrete. The Chartered accountants are trained in a manner so as to follow a code of ethics to maintain a set of professional principles, always strive to put the interests of their clients above their own. For them, practising means showcasing a commitment to preserving and evolving professional norms, so that the financial interests of yours are always in the first place.
Demerits Of Using An Unregulated Accountant
In current times anyone can call themselves an accountant, even the ones who doesn’t really have any professional degree. So, how your business will be affected if your accountant is making repeated mistakes, providing dodgy advice and has violated the law? If you are a victim the same, your business maybe rotting inside and you wouldn’t have any idea , it might be at greater risk as with such personnel as you will miss deadlines, indiscrete practice and mistakes on reporting as well will burden you with a heap of unnecessary fines.
The goodwill of your business, which you have spent so much of time and effort on making will also tend to slip away. Also, if any business is caught in the activity of false accounting fraud i.e. with manipulated, destroyed or defaced accounts, ergo not displaying their true value considered as a criminal offence and can result in imprisonment of authorized personnel along with heavy fines. One of the famous scams which come to mind is the Satyam scam; sure you would have heard it somewhere. Giving excuses for not understanding accounting practices and standards, is not going to work in your favour for a fraudulent reporting, so you are more responsible for all that you think.
In a nutshell, a Chartered Accountant not only is a problem solver for various tax and accounting problems you might have, but also can be the saviour for your business in long run and can save you from all the hustle and bustle on might face in industry.
In a nutshell a Chartered Accountant being in you workplace not only solves your accounting and tax related problems but also works as a saviour for your business saving you from the intricacies of the legal system of the country.