In a country with a population above 132 crores, there are around 6.8 crore taxpayers as recorded in the year of 2017-2018, with as many as 3 lakh active chartered accountants employed as finance consultants.
The year 2018 witnessed a slight decline in the number of full-time practitioners. Thus, establishing a CA firm in a hugely populated country yet to completely adhere to GST can be a prospective business option for individuals who are intending to build an independent entity.
Having your own CA firm would mean self-reliant working ethics along with direct dealings with the preferred clients and customized tax consultancy services in your expert domains.
Setting up an independent CA firm would require a substantial amount of influx from the licensee. Instead of liquidating their life long savings, individuals can recourse to CA loans offered by several financial institutes.
Apart from securing financial aid from reliable resources, an individual should pay heed to several other aspects to set up his/her accounting firm successfully and run it efficiently.
Guidelines to ponder on before setting up a CA firm
Every individual should be well informed about the complexities and the subtleties of running an independent accounting firm.
Given below is a step-by-step guide to starting a new CA firm to ensure smooth management of the same at an initial phase.
- Project your domain – CA firms are no longer limiting their operational spheres to just audit and taxation. New emerging trends for CAs beyond only tax consultancy services are outdoing traditional facilities like forensic accounting, risk management, international taxation, etc. An individual needs to chalk out their strengths and specializations to offer curate services. Such services are aimed at increasing the functional deliverables of a CA firm.
- Set up a price list – Every individual should be particular about his/her company’s objective and their provision of offered services. It is thus imperative for them to chalk out a pricing list for their services to be charged from the clients. The fees charged should be genuine and should adequately suffice your expenses to help you reach new targets.
- Develop a calculated financial analysis – Establishing a CA firm will allow an individual to discover several financing sources to acquire the capital needed to set up the office space, establishing infrastructure or integrating advanced software for seamlessly regulating client and business management. There are several project management software CAs should consider investing in to enhance error-free task management and improve process optimization. A structured outline for the probable expenses is an imperative step for individuals who are foraying into liaising as business management experts to avoid any financial predicaments.
Acquiring the necessary tools and framework is critical for a CA practitioner to ensure the smooth functioning of their firm.
To procure adequate funds for the necessary expenses, individuals can consider self-financing by liquidating their savings or they can opt for customized loans offered by lenders.
Reputed financial institutions such as Bajaj Finserv offer Loans for Chartered Accountants with tailor-made features to suffice varied financial needs, personal or professional.
They also provide pre-approved offers on loans to streamline a commonly arduous application process and saves ample time.
A self-operated CA firm incurs an equal share of personal satisfaction and anxiety. To ward off these hurdles effectively, an individual can refer to the guidelines mentioned above and set up their tax consultancy firm.
A CA firm today needs to offer a varied range of services to increase their portfolio of services provided.
Owners can easily refer to customized financial tools offered by leading lenders to meet the necessary finances and implement such updates in their operational setup.