Read More about - Chartered Accountant in Chennai
The important roles and responsibilities of a Chartered Accountant
You may consider a chartered accountant to be the one person you rely on at that time of the year – when it's time to file taxes. However, you can safely brush off this preconceived notion, as a CA in in Chennai do way more than just filing income tax returns. And don't think of them as mere number crunchers. See them as a consultant providing valuable insight with an aim to influence the day-to-day operations as well as long-term strategic decisions of any entity.How the profession of chartered accountancy came to be
In the early times, businesses were usually small and managed by the owner himself. The owner used to play the role of the financier, operator, seller, and purchaser, all by himself. But as the business grew, the need arose for keeping a tab on the financial aspects of the business. Businesses began to branch out and soon banks got involved in lending loans. Subsequently, the tax authorities and the government too got involved. As things got more and more complex, the involvement of a professional who could handle the financial efficiency of a business or organisation became the need of the hour. In in Chennai CA profession is considered as a prestigious one.CA in Chennai
Any aspirant wanting to become a qualified CA ought to complete the Chartered Accountancy course. The chartered accountant course, membership, examination and training is regulated by the body known as the Institute of Chartered Accountants in India (ICAI). The course has three levels and as a part of the qualifying aspect, aspirants need to complete at least three years of practical training. This tough-to-crack examination is held every year across the country. Divided into Foundation Course and Intermediate Course, the course covers an array of subjects such as Business Law, Corporate Laws, Cost and Management Accounting, Auditing and Assurance, Financial Reporting and Global Financial Reporting Standards. Once you qualify as a CA in in Chennai, you have the qualification and designation to file a business' tax return, audit financial statements and business practices, and offer advisory services to clients.
The recent phenomenon of the rapid growth and ascension of the accountancy profession and the vast changes occurring in the Indian economic landscape has placed a great amount of responsibility on the shoulders of every chartered accountant. As the country is progressing towards becoming a business and economic powerhouse, various financial and economic reforms are opening new avenues and opportunities for chartered accountants. It is the time for these professionals to infuse their knowledge and skill in their specialized fields. The roles and functions of a CA in Chennai are varied and quite significant.The various roles and responsibilities of Chartered Accountants
This is perhaps one of the key roles of any CA in in Chennai. In simple terms, an audit is an official inspection of an organisation's accounts, typically by an independent body. Through an audit, it can become clear whether the records are a fair and accurate representation of the transactions. The accuracy of the financial statements as provided by the organisation can be ascertained. This is a legal requirement for many entities. There are different types of audits that a CA in Chennai takes care of, namely internal audit, income tax audit, CAG audit, and forensic audit.
a. Internal/ Statutory Audit: In in Chennai CA as an internal auditor has to independently evaluate the evidence within the organisation. The key objective of this exercise is to assist the management of the organization in the effective discharge of its responsibilities.
b. Forensic Audit: Given the rise in litigations, scams and scandals, a CA having experience in forensic audits are sought after for this type of audit. This type of audit requires the use of investigation skills to situations that may involve legal implications.
Following are the instances where forensic audits may be necessary:
In case of a dispute between business partners, a forensic audit carried out by a CA in in Chennai can determine the profit share.
In cases of fraud where the investigations suspect illegal and unethical activities such as misappropriation of funds, money laundering, tax evasion and insider trading.
In case of insurance claims, this audit by a top chartered accountant can help quantify the amount of loss.
To find out whether the claim of professional negligence towards the accounting profession is valid or otherwise.2. Taxation
The assessment of taxes is closely linked to financial accounts. Tax information is vital for the effective economics of business management. A CA in Chennai holds an advantageous position in taxation matters, by carrying out the following responsibilities:
a. Preparing the income tax returns
b. Representing the clients/assessees before the income tax authorities
c. Rendering general advice on taxes to clients
In terms of PSUs and listed companies, the financial statements must depict a true and fair view of the operations of the company and the entities cannot window dress their financials. This is to make sure stakeholders such as shareholders, creditors, financiers and investors take an informed view and decision about the company.
The tax department may seek the expertise of a CA in in Chennai in the auditing of complicated cases that have a large revenue potential. The time and service of a CA is invested towards the maintenance of accounts of specific categories of taxpayers. An assessee with a minimum turnover of INR 10 lakhs in the case of professionals and INR 40 lakhs in case of business concerns, must get his/her accounts audited as mandatorily stated under the income tax laws.International Taxation
A CA in Chennai has a crucial role to play in the enforcement of cross-border transactions, transfer pricing and Double Taxation Avoidance Agreements (DTAA). Companies with an international presence or operating internationally ought to consult and seek the advice of a leading chartered accountant to be well prepared to answer any questions asked by the revenue authorities may have in regards to their international operations. In case of the amendments brought about in terms of tax on foreign remittances, you can consult a top CA in in Chennai and various CA firms offering 15CA and 15CB remittance certification services in the city.Goods and Services Tax (GST)
The introduction of GST in the country – deemed to be the biggest tax reform since independence - brought about a lot of initial frenzy and complications. The consolidation of various indirect taxes into a single tax did mean initial hiccups in tax compliance but is poised to bring about immense macro implications for the country's growth potential. A CA in Chennai can help businesses and professionals comply with the reformed tax laws, understand the legal structure of GST, maintain registers and documents, file returns regularly, and assist clients' in assessments and representations.3. Mergers and Acquisitions
In the dynamic world of business, corporate houses often undergo mergers and acquisitions. When two or more businesses combine into one, it is known as a merger, which is also known as amalgamation in legal parlance. Here, the company can absorb another company in its totality. Another form of a merger is consolidation, where a new company is formed in order to take over two or more companies. The term acquisition refers to acquiring a controlling interest in an existing company. Though in essence, a takeover has similar implications to an acquisition, the term itself exhibits a flavour of hostility, in most cases. Acquisitions, unlike mergers, do not involve liquidation of the company that has been taken over.
A CA in in Chennai having due expertise in mergers and acquisitions can help a business determine the following:
a. Tax concessions to the amalgamating company
b. Tax concessions to the amalgamated company
c. Tax concessions to the shareholder of an amalgamating company
d. Valuation of shares of public and private companies
e. Cost of diversification4. Accountancy
This is perhaps the most basic function that any CA in Chennai carries out. This professional has two-fold responsibilities when it comes accounting.Finance and Bookkeeping
In in Chennai CA also helps in maintaining the records of the financial transactions carried out by a business. He/she regularly maintains and updates the common books of accounts which are purchase books, sales books, payments books and receipt books. The records in these books are used to generate the income statement at the end of the quarter, which is ultimately collated with the final balance sheet.Analysis
The mere preparation and maintenance of financial record books are not enough as a CA in Chennai has a more strategic responsibility on his/her shoulders. Under the guidance of the consulting chartered accountant, the data in the statements and balance sheet is analyzed to understand various business aspects. The income statement can be analyzed to understand the top-line and bottom-line growth of the company. Whereas analyzing the balance sheet will help in understanding the standing of the organisation.5. Management Consultancy
The role of a chartered accountant grows in scope when he/she acts as a management consultant. The role of a CA in in Chennai is invaluable in helping businesses to utilize their resources effectively, increase their efficiency and check whether their business is growing in line with their larger goals and objectives. The bouquet of consulting services a CA in Chennai can offer are:
1. Design of the system to manage the budget and its control
2. Installing a system to manage the cost accounting functions
3. Development of a management information system
4. Implementing measures that effectively utilize capital
5. Assisting with effective utilization of working capital in order to boost productivity
6. Advising the management for effective delegation, planning and streamlining work activities
7. Giving advice on matters of international taxation, foreign collaborations, joint ventures, double taxation agreements
8. Reviewing the operational control procedures
9. Reviewing financial planning methods and policies
10. Offering secretarial services and rendering advice on corporate law matters
11. Assisting in preparation of feasibility studies in terms of expansion and new project undertakings
12. Acting as a registrar in terms of transfer of shares/ other securities
13. Advice to the management team on the outlook of amalgamations, reconstructions, takeovers and expansion
14. Act as an advisor or consultant to an issue. A CA in in Chennai can also advise on matters that involve drafting the prospectus and memorandum, and preparing publicity budget
15. Act as an investment counsellor with respect to securities
16. Advise on the system analysis and design, including selection and development of software and feasibility of incorporating computer applications for accounting and commercial activities6. Business Investigation and Special Company Work
CA in Chennai is sought after to carry out certain investigations in terms of the health of the business. This professional is consulted for his/her foresight, in terms of achieving greater efficiency in management and administration, finding out the lacunae in the financial governance, and the reasons behind the increase or decrease of profits. In in Chennai CA also investigates the financial position of the company in matters such as a new issue of share capital, the purchase or sale or financing of a business, reconstruction and amalgamations.
In in Chennai CA is also consulted in matters related to the formation, financial structure and liquidation of limited companies. Besides other company work, secretarial and registration work and duties of a receiver are also undertaken by a CA in in Chennai. He/she can also act as an arbitrator towards the settlement of disputes.
Frequently Asked Questions
1. What services does a professional CA provide?
There are multiple services like budget preparation, accounts preparation, book-keeping services, cost accounting services, financial statement auditing, etc. provided by a professional CA.
2. Are there specializations for CA?
Audit & Assurance is what every CA professional specialize in. Other than that, there is a CA for commercial taxation, digital signature certificate, finance and corporate advisory, individual taxation, registration and license consulting, and so on.
3. Why should I hire a professional CA?
Since accounting plays a key role in any business, hiring a professional CA will ensure a smooth financial operation for your business. They can help you manage your business expenses, offer investment advice, provide tips on audit and legal issues, etc.
4. Can I hire CA services online?
Yes, there are several professional companies offering online CA services.
5. Will the CA in in Chennai come to my home and file the I.T. returns?
No. Filing I.T. returns is an online process. The CA will ask you to email all the necessary documents and will file your returns from his/her office.