BCAS President CA Chirag Doshi’s Message for the Month of May 2024

Professionals Role in Indian Economy

Dear BCAS Family,

This quarter the theme of the Society is connecting with Industries and members in Industries.

Chartered Accountants play an important role in the business ecosystem by executing functions like Auditing & Assurance, Tax Consultancy, Accounting Services, Accountants & Finance Outsourcing and Financial Reporting. Every business entity has to onboard a CA for managing tasks like Finance Manager, Financial Controller, Financial Adviser or Directors and also appoint for audit of its accounts.

Several recent news and surveys highlight the growing importance of the CAs in the Industry.

Recently the ICAI President articulated, “For everyone trillion-dollar growth in the economy, there is an expected requirement of 1 lakh chartered accountants.” Further he projected that by the time India celebrates its 100 years of independence, the nation would require over 30 lakhs new CAs to support its growth trajectory.

As per a report from CFA institute, Finance is considered to be the most desirable, stable sector to work in among 18-25-year-olds, beating tech, health care and education.

As per Times Now article, Just Dial, reveals a whopping 47% growth in demand of CA and Income tax consultants in FY 2023-24. According to the report non metro cities like Indore (72%), Chandigarh (71%), and Lucknow (59%) saw the highest growth amongst other cities.

As per another news report, the average annual salary of CAs in India works out to approx. INR 7.36 lakh in the campus placement programs by ICAI. The salary packages offered to Chartered Accountants ranges between INR 7 lakh to INR 30 lakh, according to the performance and skill.

Over the years there has been a changing trend of CAs moving from practice to industries. There is a need to understand not only what practice requires from a CA but also what the industry demands. Chartered Accountants play a crucial role in the Indian economy and industries across various sectors.

Here are some key areas where CAs contribute significantly:

Skill Development: CAs contribute to the development of a skilled workforce by imparting training and education in various fields, thereby enhancing the overall productivity and efficiency of industries.

Management and Leadership: CAs in management roles provide strategic direction, manage resources efficiently, and lead teams, which are essential for the growth and sustainability of industries.

Financial Management: Chartered accountants as financial analysts, and investment bankers play a crucial role in managing finances, ensuring compliance with regulations, and advising businesses on financial matters, which are vital for providing growth capital to the industries.

Legal and Compliance: CAs ensure that businesses operate within the legal framework, comply with regulations, and resolve disputes, which are essential for maintaining a conducive business environment.

Sustainability: CAs in today’s sustainability space, play a crucial role in ensuring industries operate in an environmentally responsible manner as well as guide enterprises to adopt social and corporate governance which are essential for sustainable economic growth.

Policy and Advocacy: CAs in policy research and advocacy contribute to shaping government policies and regulations that impact industries, thereby influencing the overall economic environment.

Overall, CAs contribute significantly to the Indian economy and industries by driving innovation, ensuring compliance, managing resources efficiently, and promoting sustainable practices.

Further during the last quarter, I interacted with various leading CFO’s and understood the expectations of Industry from Chartered Accountants whether in practice or jobs. Some expectations which Industry has are:

Technical Skills: CAs are expected to have a strong understanding of their field, including knowledge of relevant technologies, processes, and best practices. They should continuously update their skills to stay relevant in a rapidly changing business environment.

Problem Solving skills: CAs should be able to identify issues, analyse problems, and develop effective solutions. This includes the ability to think critically, creatively, and analytically to address challenges.

Leadership skills: Even if not in formal leadership roles, CAs are expected to demonstrate leadership qualities such as proactive approach, decision-making, and the ability to motivate and inspire others.

Continuous learning:  Industries are dynamic, and CAs should be committed to continuous learning and development to stay updated with the latest trends, technologies, and practices in their field.

Result oriented: CAs are expected to deliver results, meet deadlines, and achieve goals effectively and efficiently.

Teamwork and Collaboration: CAs are expected to work effectively in teams, collaborate with colleagues from diverse backgrounds, and contribute to a positive work environment.
In general, CAs work at leading positions in the accounting & finance departments in the industry. They also go on to lead the enterprises as CEOs and Chairmen guiding them with diverse knowledge gathered over the years. Apart from the fundamental roles, CAs also play an important role in planning & financial strategies, governing pension funds & long-term investments, providing portfolio management services, unification, or takeover, etc.

“The best accountants don’t just see numbers; they see the potential for financial transformation.” – Samantha Wilson