Chartered Accountancy is indeed a professional who deals with your finances and taxes. But the role of a CA has more depth than that. A CA is very essential not just for the development of a firm or industry, but also for the building of the nation’s economy. The participation of a CA is noticed in almost every field like budget forecasting, tax planning, preparation of books and accounts, capital budgeting, financing or any other activity. The knowledge advice of a CA is a prerequisite for any information of law related to commerce, taxation, or legal fields and also, any Drafting rules and provisions of GST. The main areas where a CA’s expertise is required.
1. Accountancy: Maintaining various financial accounts and preparation of financial statements is one of the most important roles of a CA. From vast services like simple bookkeeping to complex financial analysis, all come under the responsibilities of a CA.
2. Taxation. The CA bears the responsibility of preparing the tax returns. The Business Management Assessment taxes is linked to financial accountability and hence, fall under the arena of a CA.
3. Auditing: Auditing is nothing but ensuring the users of the financial statements and the accounts presented before them for preparing them on the correct accounting principles. An accountant’s treasured skills, training, and power of judgment are required in this task. The goodwill of the company depends upon correct financial statements hence, to keep them fair and maintained, a CA is very significant.
4. Cost Accountancy. Cost Accountancy has become a newly introduced but very important role of a CA when it comes to manufacturing a firm or a service provider. He has to establish the cost of production and the costs which would be incurred at different levels of production. CA is essential to provide the cost information for the management. So, establishing a proper selling price and finding solutions to reduce the making cost is a task where CA’s expertise is required.
5. Directorship. Now that people have realized the significance of CA, His advice and judgment are required in every major financial decision. A CA is now included as a necessary member of the Board of Directors. This helps the firm to make better and more profitable decisions. Before making any final decision, the input of a CA is crucial.
6. Investigation. CA is often present during an investigation regarding the financial position of a business, especially during the new issue of share capital and purchasing or selling or financing of a business. Investigations also take place in concern with achieving better efficiency in managing or administering the fluctuations in profits.
7. Maintaining the books Whether it be a small business or a grand industrial firm, Bookkeeping is very important for stability and maintenance. Creating necessary amendments and regulating business income and expenses is included in book-keeping. With assistance from expert CAs, firms can have a perfectly professional and beneficial.