As per a report presented by The Times of India, there are only 2.82 lakh chartered accountants in India as of April 2018, out of which around 1.25 lakh CAs are practising full time.
During the same fiscal year, the number of taxpayers in India reached around 6.8 crores, creating a significant demand for financial guidance.
As per the data, only 44% of the demand can be met considering the actively practising chartered accountants in India.
In this regard, chartered accountants are encouraged to practice CA full-time so that India can easily meet the scarcity.
However, the reduced number of chartered accountants, who are not actively practising accountancy can be a result of a fewer number of CA firms across India.
Consequently, establishing a new CA firm will not only cater to the needs of customers but also will create greater opportunities for those pursuing the field.
Financial companies also provide a business loan for CA to help them acquire the much-needed funding to establish such firms.
Important things to know before opening a CA firm
Before establishing a CA firm, there are certain important pointers that individuals must plan and design personal budget with strategies before so that they meet success in their business endeavour.
- Business plan
This is the very first point of a step-by-step guide to starting a new CA firm that leads individuals further in their entrepreneurship course.
Chartered accountants should first form a proper business plan that answers fundamental questions about their business.
To do so, they should define the motive and aim of their business in the first place.
Once done, individuals should focus on forming –
- Client strategies,
- Market entry strategy,
- Pricing strategy,
- Define ethics and values for business,
This is the planning stage wherein customers must form a business plan that foresees how they as a unit are going to perform in operation.
- Financial plan
Once the chartered accountant has formed a business plan and strategised the goals, he/she needs to concentrate on the financing part.
Establishing a CA firm will need substantial funds; CAs will need them to look for sources to avail finances. While they can choose a convenient option of utilising their savings for the business, it can be risky as well.
Another alternative to this situation can be a business loan for CA. Individuals can avail a loan that can help them meet their business demands.
Availing a business loan for chartered accountants will help individuals with the funds needed to put their business plan on the operation.
Moreover, financial companies like Bajaj Finserv simplify the loan application procedure for professionals with their pre-approved offers.
Moreover, these loans are offered at competitive CA loan interest rates so that customers can easily repay it.
Organisational skills, professional skills, time-management, and technological skills are a few qualities that an ideal chartered accountant must have to operate their business successfully.
Making sure they are well versed with the skills will help them in delivering satisfactory audit and consultancy services to clients.
Subsequently, here are some tips that will help entrepreneurs set their CA firm efficiently –
- Chartered accountants should focus on offering a quality solution to customers so that they earn goodwill in the long run.
- In the initial days, providing services on a cost-effective price can help one avail more clients and build a network. It is also essential to create goodwill in the initial days of business so that it sustains the competitive market.
- Stay up to date with the latest trends and technology updates that are needed by chartered accountants to work upon their services efficiently.
- CAs can also look for collaboration to expand their business and extend its range of services to serve customers efficiently.
Subsequently, a business loan for CA is required for them to finance their business operations and focus on customer satisfaction.
Focusing on these pointers, chartered accountants will be able to establish a fruitful business venture.