If you're a fresh graduate or a young professional looking for a rewarding and well-paying career, becoming a Chartered Accountant (CA) could be the perfect path for you. With its potential for growth and high salaries, the field of chartered accounting offers numerous opportunities to excel.
In this guide, we will take you through the steps required to become a CA in India and equip you with valuable insights to kickstart your journey.
Who is a Chartered Accountant?
A Chartered Accountant (CA) is a highly respected and sought-after professional in India's economy. As a CA, you will play a crucial role in financial management, auditing, taxation, and advising businesses and individuals on financial matters. Your expertise will be instrumental in ensuring compliance with legal regulations and providing valuable insights for strategic decision-making.
Roles and responsibilities of a Chartered Accountant
- Conducting financial audits to ensure accuracy and transparency
- Providing tax planning and advisory services
- Preparing financial statements and reports
- Assisting with budgeting and forecasting
- Offering business consulting services for growth and profitability
Skills required to be a Chartered Accountant
- Strong analytical skills are needed to interpret complex financial data
- Attention to detail to spot discrepancies in financial statements
- Excellent problem-solving abilities
- Proficiency in accounting principles, tax laws, and auditing standards
- Effective communication skills to liaise with clients, colleagues, and regulatory authorities
Becoming a Chartered Accountant requires dedication, hard work, and the fulfilment of certain eligibility criteria. Let's explore these requirements in detail.
CA Certification Requirements
To become a Chartered Accountant in India, you need to meet specific eligibility criteria. These include educational qualifications, an age limit, and the completion of the registration process.
Education requirements:
To pursue CA certification, you must have completed 10+2 or its equivalent from a recognised board. Additionally, you need to possess a bachelor's degree from any discipline recognized by the University Grants Commission (UGC).
Age limit:
There is no age limit for registering for the CA Foundation course.
Registration process:
The first step towards becoming a CA is registering with the Institute of Chartered Accountants of India (ICAI). You can register after completing your 10th grade, but you can only appear for the exams after completing your 12th grade. The registration process involves submitting the required documents and paying the registration fees.
Structure of the CA certification programme
The CA certification programme consists of three levels: Foundation, Intermediate, and Final, along with a practical training period called Articleship.
1. Foundation Course
- Duration: 4 months
- Subjects covered: Principles and Practice of Accounting, Business Laws and Business Correspondence and Reporting, Business Mathematics and Logical Reasoning & Statistics, and Business Economics and Business and Commercial Knowledge.
- Average cost: ₹9,000 to ₹10,000
2. Intermediate Course
- Duration: 8 months
- Subjects covered: Accounting, Corporate Laws and Other Laws, Cost and Management Accounting, Taxation, Advanced Accounting, Auditing and Assurance, Enterprise Information Systems and Strategic Management.
- Average cost: ₹16,000 to ₹18,000
3. Final Course
- Duration: 3 years
- Subjects covered: Financial Reporting; Strategic Financial Management; Advanced Auditing and Professional Ethics; Corporate Laws & Economic Laws; Strategic Cost Management & Performance Evaluation; Risk Management; Financial Services & Capital Markets; International Taxation; Indirect Taxes.
- Average cost: ₹40,000 to ₹45,000·
4. Articleship
After clearing both groups of the Intermediate level exams or completing the Intermediate course's first year successfully, you become eligible for articleship training. The duration of an articleship is three years.
Exams and Passing Criteria
Each level of the CA certification programme has multiple exams that you need to clear to progress further. Here is an overview of the exam structure:
CA Foundation Exam (four papers)
- Passing criteria: Minimum 40% marks in each subject with an aggregate score of at least 50% in all subjects
CA Intermediate Exam (eight papers)
- Passing criteria: Minimum 40% marks in each subject with an aggregate score of at least 50% in all subjects.
CA Final Exam (eight papers)
- Passing criteria: Minimum 40% marks in each subject with an aggregate score of at least 50% in all subjects.
Tips for success in the exams
- Practice solving previous years' question papers.
- Time management is crucial, so practice answering questions within the given time limit.
- Devote sufficient time to each subject.
- Focus on understanding the practical application of concepts.
- Revise regularly and attempt mock tests to assess your preparation.
- Seek guidance from experienced professionals or join coaching classes for specialised subjects.
Career Prospects as a Chartered Accountant
As a CA, you will have a wide range of career opportunities across various sectors and industries. Some of the job roles available for CAs include:
- Auditing
- Tax consultancy
- Financial management
- Risk advisory
- Investment banking
- Corporate finance
In government organisations like the Comptroller and Auditor General (CAG), Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and various public sector banks, CAs are highly valued for their financial expertise.
CAs also play a pivotal role in small businesses and start-ups by providing essential financial guidance during crucial stages such as budgeting, forecasting, tax compliance, and capital structuring.
Salary Prospects for CAs
Salaries for CAs vary based on factors such as experience, industry, location, and organisation size.
- At entry-level positions, CAs can expect an average annual salary ranging from ₹6 lakhs to ₹10 lakhs.
- With experience and expertise, CAs can earn significantly higher remuneration, with mid-career salaries ranging from ₹15 lakhs to ₹30 lakhs per annum.
Upskilling to Improve Career Prospects
Continuous learning and upskilling are crucial for remaining relevant and competitive as a Chartered Accountant. Upskilling can not only expand your knowledge base but also increase your earning potential.
To enhance your technical skills, consider enrolling in advanced courses such as taxation law courses or specialised accounting software courses.
- Taxation law courses will provide you with a deeper understanding of tax regulations and enable you to provide comprehensive financial advice to clients.
- Specialised accounting software courses will help you become proficient in using software like Tally, QuickBooks, or SAP, improving efficiency in your work processes.
WIZR can assist you in your journey towards upskilling by providing expert guidance on suitable courses and financing options. With our support, you can choose the right professional development courses that align with your career goals.
Industry Growth and Job Opportunities
The demand for Chartered Accountants extends across various industries in India, offering diverse opportunities for career growth. Understanding the growth trends within each sector can help you make informed decisions about your career path.
Top Industries in India for CAs:
- Banking and Finance
- Manufacturing and Retail
- IT and Software
- E-commerce/Startups
- Healthcare/Medical Services
- Real Estate
Kickstart Your CA Career!
By keeping yourself updated with industry trends and acquiring additional skills through upskilling programmes, you can position yourself as a valuable asset across various industries. This will open doors to exciting job opportunities in sectors experiencing significant growth.
Remember that WIZR is here to support you throughout your career journey by providing access to a wide range of upskilling options and helping you stay ahead in your profession.
FAQs
1. Who earns more: a chartered accountant or a financial advisor?
Chartered Accountants typically earn higher salaries compared to Financial Advisors due to their specialised knowledge and skills in financial management, tax planning, and corporate compliance.
2. How long does it take to become a CA in India?
It generally takes around 4-5 years to become a Chartered Accountant in India. This includes clearing all levels of examinations and completing articleship training.
3. Can a chartered accountant in India apply for jobs abroad?
Yes, chartered accountants in India can apply for jobs abroad, as their qualifications are highly regarded internationally.
4. Is it mandatory to have a licence to be a CA?
Yes, it is mandatory for individuals to obtain a membership licence from the Institute of Chartered Accountants of India (ICAI) in order to practise as a Chartered Accountant in India.
