A road map to start your career after becoming Chartered Accountant..!! – Job or Practice
Whether to go for practice or job??
After passing CA final examinations, one question that gives sleepless nights to many is “WHETHER TO GO FOR PRACTICE OR JOB??” Your whole future depends upon making the right choice.
Remember one thing, when we prepare for exams we think it’s the most difficult part in the life of CA but in fact it is not. To be very frank it is the easiest part in the career of CA.
Why because, either to start your OWN practice or to get placed in a top company with fancy packages are more difficult than exams.
- First thing you need to do is talk to people –
Talk to people who are practicing, talk to people who are in industry, and talk to people who have started practice straight away, talk to people who have worked for a few years in industry and then set up their own practice.
- Job Vs Practice and difficulties in making choice
Even before you start your article ship one has to decide the career in terms of joining job or starting your own practice. The early you decide it is better. If one is keen to join practice then joining big four firms will not provide exposure in areas of small and medium practicing firm. Ideally a person should join small and medium size firm where he learns everything from audit to taxation from executing to handling client.
If you have decided to practice then First recognize yourself as a CA in your area
For all those who are opting for practice, initial period of struggle ranges from 2 Years to 5 Years only exception is joining an existing set up. If you are going solo in practice, first few months are nothing less than the nightmare, all you have to do is to roam around, meet the potential clients. There will be only expenditures and no income. Chances are that you may start feeling frustrated if you had not adequately planned the financial resources to sustain in the initial phase. After first few months and after developing good networks, things surely will change for good.
First you need to get out of the fear of doing works on your own. Then slowly the above people will start referring more people for you. First recognize yourself as a CA in your area Whatever work comes to you , be it getting PAN card, filing of simple salary return , take that and do it in a sincere manner.
- The Avenues in the CA
In the CA practice, believe me sky is the limit and there is no dearth of opportunities. You can practice in the areas of taxation both direct and indirect. Auditing is another area where you can excel. You can become Virtual CFO of many small and medium enterprises by helping them to manage their finances properly. Project finance is another area where you can try your hands. IFRS implementation consultancy is also a new area to practice. Implementation of GST will also open new doors of opportunity for members inPractice. There are many other avenues such as helping setting up of businesses, helping industries with grants and subsidies. With increased number in start-ups, CA can help them in getting finance.
- Every day Learning something new
There is a saying which is quite popular for members in Practice, “ If you are not updating yourself every six months, you are of no use to your clients” It is true, in practice learning never stops, every day you have to learn something new and unlearn something which you already knew. As you have to serve variety of clients, you have to keep yourself updated with the new changes and amendments.
Even ICAI mandates members in practice to attend Continuous Professional Education programmes.
- Creating Expertise Vs General Practice
Initially it is advisable to go for general practice, so that you learn and explore each area. No point when you are jack of all but master of none. So, in long run it is always better to specialize in some area. However, it comes with its own risk. Imagine government to abolish Income Tax Act! Then all those who has specialize in Income Tax Field will find it difficult to start something new.
- Pursuing your dreams by making your own boss
Do not forget in practice you are your own boss. You can always have a work life balance. You can always fulfill your dreams. Yes in beginning you have cash flow issues and may have to take monetary hit, however the self-satisfaction you get is immeasurable. I personally had that opportunities to explore many new desires which would have been difficult if I would have been employed, as you have to give at least 10 to 12 hours to job. In summary there are challenges to start your own practice but the real fruits you get only with patience and trusting oneself.
- Practice development activities
Among the worst mistakes a professional can make is under investing in marketing to existing clients. Existing clients are not only more likely to give you new business, but the business they will give you (if you work to earn) is likely to promote the value both of your skill asset and your client relationships asset.
No matter how busy you are, you still owe it to yourself and to your career to get involved with and take charge of your own practice development activities (marketing and selling). If you let others in your firm generate the business you work on, you are putting your career development in other people’s hands – a risky move at best. If you rely on business flowing to you unsolicited, then, with high probability, it is going to be “asset milking” rather than “asset building”. What marketing and selling are about is truly practice development: Influencing the qualitative nature of what you work on, so that you use your work experience to continue to build your career.
- Collaboration with expert
You need to understand that you can’t be an expert in everything when you are into practice. You should try for collaborations with other professionals so that faster services are provided to your clients.
- Some important key points to be taken care before your go
- In early stages don’t expect too much fees. It’s like filing return for 3 guys for 1500rs is better than filing return for 1 guy for 1000 rs. The point is you have 2 more clients and he could bring some more
- If you want to be prudent, join in a practicing firm as an employee after you have become a CA so that a regular income is assured, then start doing the above activities parallely. But you should manage both
- Always try to add value to clients. As much as possible advice your client as to how to run business effectively, how to manage funds effectively. If possible arrange him some loans and tell him that he can claim interest as an expense (tax savings on that) instead of running business on his own funds. Like that I
- If you want to establish the name of your firm or proprietorship in the society , just put an article assistant under you. He will take care of the rest. The moment he starts learning, he will tell his friends about his office and in many cases he recommends people for professional works to your office.
- Wherever you go, whomsoever you meet , shake your hands confidentially and give your visiting
- Attend as many social functions as possible. Don’t speak unnecessarily anywhere and try to make as many new friends as possible. Never underestimate anyone. Even a car driver could bring his wealthy boss as client to you.
- To the extent possible wear dress formally. That adds value as a professional.
- Approach banks for concurrent audits, start registering in empanelment sites for audits of C and AG , banks
If you have decided to JOB
Note- ICAI campus placement will help you in finding the available Job opportunities for yourself.
- The Initial Struggle: For all those who are opting for job, your struggle is for very short period and ends with finding the right company to work for. Generally it takes 2 to 3 month time for a fresher CA to get a good job with handsome remuneration. Even ICAI conducts campus for placement of newly qualified CAs. In these 2 to 3 months, sometimes companies reject you and sometimes you reject the But once you finds the right company, your struggle ends and you start earning from the Day 1. Unemployed CA is still a myth and you have to be an idiot of highest level to remain unemployed after passing CA final exams.
- The Avenues: There are so many avenues to work for CA in job. Those who are going for job, can join Banks as Credit managers, Government Companies as well as Private companies as Manager Finance & Accounts, Finance consultancy firms as consultants, Big 4s as audit manager or taxation consultants etc. You should choose the job keeping your long term goals in
- The Learning: If you are in job, your learning and knowledge will be limited with regard to the work you are doing. Training sessions will also be limited. If you are working with Big 4s, chances are that you might get regulars in house training sessions where as for others chances to get training about new topic and updating themselves are very
- The Financial Aspect: The financial security and stability are must for both CA in job as well as for CA in practice. As I discussed in the “Initial Struggle” , CA in job gets financial security and stability form the Day 1 whereas CA in practice have to struggle a lot to achieve financial stability and security.
The Switch from job to Practice and the other way around:
Many people think that, they will switch from job to practice after few years. But it is easier said than done. If you want to go for practice, go for it now. Many says that they want to earn moneyinitially so that they won’t face any issue while setting up their practice, it is a good reason , but reality is that you won’t able to save much.
Conclusion from the article
-During initial struggle phase, CA in Job is better than CA in Practice initially.
-Long term opportunity wise, CA in Job and CA in Practice are at par.
-Learning wise CA in Practice prevail over CA in Job.
-Financially CA in Practice will be better than CA in Job on long run, and vice versa in short run.
-Independence for CA in Practice is more than CA in Job.
-For a second generation CA whether in Practice or Business, following the work of first generation is any day better to go for Job.
One should keep all above points in the mind before choosing one of the alternatives. The views express above are my personal views and readers should keep their personal goals in their mind before opting anyone or the alternatives.
CA Rohit Ruwatia chartered_ruwatia@yahoo.in