Scope of CA By CA Mukesh Solanki

Scope for CA – Part A

Someone aspirant to be CA asked me this question today might be with hope to get the answer from a newly qualified and practicing CA – like 3 years baby of this degree, who might have ascertain how he is going to crawl and what is the path ahead. I do not know whether I satisfied him or not but my answer was something like with this thought:

There used to be scarcity of the literate people in around 1950-60, and those who were metrics passed (without considering the grades and marks) were recognized by the society and were given preferences to the Jobs, than scenario has changed from metrics to graduation and now this decade is at the final point where professional degrees had some values. What I mean to say is as metrics lost its value- professional degree has lost its value, Value which was driven by its scarcity not by its knowledge or caliber of degree holder or professional.

So coming to the point, Now this is the decade and coming era when all degrees are loosing this market driven (demand & supply value), there are sufficient degree holder in every area i.e. doctor, engineer, lawyer, CA etc. even shortage of that is being covered very well by the professional of those fields.

Second, when there was education spreading, a breed of non-educated successful people have been proved in the area of innovation, science, arts, enterprising. Example – Bill Gates, Steve Jobs, Dhiru Bhai Ambani, and many more who are successful with their life living.

Therefore, What I feel is, Scope for degree has become very less now there is scope for Talents which comprises of knowledge from the degree, personal traits like being innovative, enthusiastic, patience, team worker, learner and many qualities. As much qualities talent you have your success scale will go that high. Now getting jobs Only on the base of Degree will be difficult, that is what I perceived.

Part B – Scope for CA

Now same question was debate point with a senior CA, with the passing percentage and increasing number of CA. His question was CA’s are not getting Job, they are working for half of the value for which they were working earlier. So does CA profession loosing its value.

While we debate at informal forum such as get-together, office or chai-wala stand, we put our points without exact data base or survey report but with the logics, earlier I wanted to put this article with through R&D and data but I think my logics will suffice to buy the my point of view on the same for the reader.

To start with, CA were getting good packages in around 2003-04, their salaries in the industries got hike like anything, never before and…(unfortunately after than till date) But was that because scope for CA was increasing ?? or was that due to market boom and other factors.

·         It was heard that Government and other authorities has estimated there were requirement of CA’s 10 times than its present professionals. They hold some statutory powers like audit report, certification, attestation which can not be done by other profession, but there were lack of such members to fulfill the market demand.

·         Out of 125 Crores population there are 0.1 percent super rich and 0.1 percent are rich and 0.1 percent are rising rich, and these all approx 40 Lacs persons requires CA for assistance in the dominant are of profession, which is financial advisor, auditor, tax planner and many more verticles.

·         Are these 40 Lacs rich people nos. decreasing or increasing, which may cause worry for required supply of professional members in coming years.

·         These 40 lacs clients, which is pessimist approximation by me, includes public limited companies, private limited companies, FDI, Share Markets, Other Non-Corporate Tax Payers.

·         New Acts and Laws are taking shapes as unborn babies, which will be having their futures, they are called

Ø  New Companies Bills – Companies Act for Financial presentation and audit report

Ø  Merger of Indirect Taxes in the form of – GST

Ø  New Direct Tax Code – Replacing Income Tax Act

Ø  Changes in the Accounting Standard & Financial Reporting in synchronization with IFRS and International Reporting.

Ø  Development of SME Sector & Related Government Schemes

Ø  Increasing value perceiving importance of Internal Audit by the entrepreneurs

Ø  Increasing reporting requirements of SEBI.

Ø  Increasing Certification requirements of Banks.

Ø  XBRL Reporting

Ø  Foreign Companies – FDI, FEMA, RBI Compliances

Ø  And many more……CHANGING WORKING STYLE – ONLINE AND COMPUTERISED

·         This is like there are many new area emerging and existing area calling for expertise and skilled professional where, CA are best suited for (another point)

·         Earlier above area which were existing were not taken up so widely by CA members being filled bellies with other work and over burden with only one Act – Income Tax Act.

·         Acts are increasing, professionals are increasing, professional service provider – working style is changing, that’s all on positive note.

·         Now the time has come where acute professionalism is required and base of any corporate / entrepreneur working will be required with accuracy and best presentation. The time will come when the middle level management will be required to be done by HIGHLY skilled and Professionals only (both qualities) in any area of professional stream, these will be the positive effects of increasing education base over the coming decade.

·         But the question goes unanswered – CA are not getting jobs and placements – Hmmm

Basically, this profession has started with motto of imparting Expert Knowledge in the field of Commerce, and on the same path its leading. With above analysis of increasing area of work – where a CA professional can work, there will be huge requirement of professionals (If economy survives and Laws are implemented) which will not be possible to produce when required. (On an average 20,000 students are becoming members every year for last couple of years, that is maximum no. of passing students, with this speed it will take next 10 years for 2 Lacs new professionals (Out of this 10% does not make any use of their degrees, 10% are entrepreneurs, 50% goes for Jobs, rest are into practice of profession – where 10% goes on changing the concentration to real estate or investment businesses or more rewarding areas). Now this is again the question whether supply of professional is really sufficient ??

A CA professional when comes out as a member is require to polish his knowledge with practical environment and sharpen his skill, which takes time so with this imbalance of demand and supply will lead to breath and nurture other talent skill – like patience, marketing, survival tactics and many more (as I said, only Degree Scope will end and Talent Scopy will survive) of new professionals embarking to the practice whether by choice or by force (non-availability of jobs).

·         Salaries and Fees can be one parameter but not the only parameter to derive value of any profession, since professional bodies spreads knowledge not the remunerations.

·         Last but not the least – Profession does not derives its value by the Demand-Supply or Salary being offered to its fraternity members, because that is driven by many other factors too. But A profession has true value and scope – in the area where it can provide its services with best skill and practices and expertise, Where the members are considered the expert of area for taking any opinion or to lead any related task.

With this point I guess area of skill where CA can work and excel are increasing day by day and definitely scope for them is expanding its horizon.

Disclaimer: These are solely opinion without much of data but logics, and perceived with market notions. Therefore users of this are advised to use their prudence for deciding Scope of CA / other Profession.

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This Article has been shared by CA Mukesh Solanki. He can be reached at ananta.finserve@gmail.com

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