According to the job portal, the average Salary: Chartered Accountant (February, 2022) stands as 8, 26,053. Chartered accountants getting opportunities in the public sector get ten to twenty lakh salary per month. The highest salary for a chartered accountant is twenty lakh per month in India. Fresh chartered accountants getting international offers get nine to eighteen lakhs per month. The average Chartered accountant or CA salary in India is seven to eight lakhs. Chartered accountancy is an eminent profession where multiple factors contribute to the salary. Apart from market demand, experience, skills, marks, several attempts and the country of the job play a vital role. The year 2022 is here and it brings lots of opportunities to chartered accountants. New start-up companies and capital markets fix the ground for a healthy economy. This blog clarifies the growth and opportunities in the year 2022 centred on the job nature of chartered accountants.
Value of accounting professionals in the year 2022:
Automation is dominating the junior level accountants post. The year 2022 decrease the number of junior-level professionals. Though technology is playing a big role, the documents, reports and analysis are the same. It is not about technical development but it is the competitive edge that is pulling the profession to the next level. The skills required in the year 2022 is quite different from 2021. Communication, technology, memory and manual dexterity are outdated skills for the accounting profession. Analytical thinking, innovative ideas, strategic planning, creativity, designing, problem-solving, leadership, emotional intelligence, social influence, system analysis, reasoning, and evaluation are the skills that lead the accountants in 2022. The book knowledge of memory and communication will not enhance the performance of an accountant in 2022. The business models and client expectations are moving the job industry.
Comparison of chartered accountants and cost accountants:
Financial statements and cost statements require specialised knowledge to understand business challenges. Standard costing, action-based costing, limiting the processes and cost volume benefit investigation are the research areas of cost accountancy. Chartered accountants take care of auditing and tax laws.
• Chartered accountants take care of core business processes and economic changes. Cost accountants work with resources and expenditure strategies.
• In India, the scope of a chartered accountant is high. Cost accountants job is in demand in India and abroad as well.
• Chartered accountants conduct a tax audit. Cost accountants conduct cost audits.
• The current market wants cost control and decreased competition for the products. Chartered accountants help for increasing tax revenue to the government. Cost accountants help for developing profits and reducing competition.
• Chartered accountants work in private, public and public practice. They can handle all fields of finance. Cost accountants work is demanded by the government sector, banks, finance sector, private sector, and research and education sector.
• CA has one elective paper with an open book exam pattern. Chartered accountants answer subjective and objective questions. Cost and management accountancy has objective and subjective questions.
Chartered accountants are needed for capital markets:
The savings and investments are diverted towards labour and capital market through capital markets. The capital markets get empowerment through operations, allocations, value and pricing. The pricing factor depends upon the representation of financial information by fair means. For this function, chartered accountants contribute to the capital markets. The determinants of value in the capital market are reducing the payback period, reducing debt load, assessing risk, and enhancing revenue. Chartered accountants engage the capital markets with efficient operations. Governance, transparency, reporting, and trust-building are elements that drive capital markets. Capital markets rely on the skills of chartered accountants.
Chartered accountants are needed to groom the start-up economy:
India is conferred as the third biggest start-up economy with 21 unicorns after China. USA, Israel and Britain also stay behind as compared to India. The chartered accountants help the start-up Companies to reach unicorn status. Oracle, Microsoft, Apple, Cisco, Google, and Facebook are the unicorns that created a wave to the start-up economy. Chartered accountants own the following roles in a start-up company: tax consultant, investment officer, chief financial officer, business structuration, business documentation drafting, and risk minimization, representation to the capitalist, marketing director, compliance check-up and mentor. The contribution of chartered accountants to start-up companies help to understand the demand, supply, legal requirements, investment options, data-driven decisions, and market research.
The demand of chartered accountants and cost accountants in foreign countries:
Cost accountants are more preferred than chartered accountants in foreign countries. At the domestic and international level, the cost control strategies and pricing decisions have a difference. The tax laws and auditing practices with different sectors differ in India and abroad. The business process and business challenges are country-specific ones. After getting vast experience, chartered accountants get the application knowledge to understand the international accounting standards. The basic knowledge of chartered accountants is helpful to understand the financial statements. Experience plays a vital role in applying knowledge.
Chartered accountants are paid based on skills in the year 2022. As like the previous year, this year the demand is high. Corporates need chartered accountants. Education with required professional skill become the breadwinner. The highest payment is for budget management skills. The salary is between 9.5 lakh to 11 lakh. Companies struggle to reduce expenses and get more profits. So, the second driving skill for a chartered accountant is strategic accounting. This skill gives eight to nine lakhs of salary to a chartered accountant. The sought after skill in the industry is management auditing. This skill gives 8.5 lakhs to 9 lakhs of salary. The primary skills of a chartered accountant are auditing, account management, tax consultation, and financial reporting. These skills render seven lakhs to eight lakhs salary to a chartered accountant. The primary skill is a common one and comes from education. The secondary skill is the tailored one that comes from practical learning. Bear in mind these skills take the student to the top management cadre. The average salary of a CA in India in 2022 and professional skills attract beginner level, accounting professionals.