Why trend of hiring Indian Chartered Accountants (CA) has become so popular these days in countries like United States, United Kingdom, Australia, Dubai
Off-late the qualification of CA has started getting global recognition considering the competitiveness and curriculum. ICAI, Institute of chartered accountants of India, is the central body which manages the profession of CA. Considering the potential and scope of the International Taxation and Accounting, IFRS, etc, ICAI has introduced many course on International tax and accounting practices, IFRS, International Taxation etc which CA has to undergo. Much recognition for CA Qualification is due to the fact that the CA course has been able to keep pace with changes in global industry scenario. CA has declared to be equivalent as CPA of US and ACCA of UK.
As professional employee Chartered Accountants work as Finance Managers, Financial Controllers, Financial Advisors or Directors (Finance), , Investment Bankers, CFO’s and oversee the finances in the day to day management of companies. Their main areas of work include Accountancy, Auditing, Cost accountancy, Taxation, Investigation and Consultancy, Internal Control, Financial Management, Compliance management etc.
3 Level Exams
There are 3 levels of exams before the get the degree.
- Common Proficiency Test (CPT),
- Integrated Professional Competence Course (IPCC)/IPCE,
- Final Exam.
Which in aggregate take around 4.5 to 5 years of time post the higher secondary education. Thus pursuing a rigorous 5 years academic course.
3 Years of Rigorous Internship in Public Accounting firm :
It’s is mandatory for each student pursuing CA to undergo 3 year of full time practical internship at an accounting firm, hence this allows students to work on real assignments and gives on job learning opportunities. So when a candidate become CA he should be considered as an professional of 3 years of work experience in accounting firm. There are a few pre-requisites (exams, orientation program, training) that a CA student should meet before starting the internship.
6%-8% of Exam Clearance Ratio
As per the statistics, CPA’s passing rates of 2015 on an average of above 50%, and when the same is comparted to 78,000 students appeared for CA final exam in 2014, only about 5,500 could pass. i.e. 7%. In 2013, it was about 4,000 students passed out of 60,000. i.e.6%. Hence the competitiveness is very high, so the talent which comes out has undergone tremendous amount of toil and hardwork. Also one another interesting statistics is that 98% Indian students appearing for CPA’s pass the exams as compared to the national US average of about 50%.
The CA course is designed to combine theoretical study with practical training. The Chartered Accountancy course is considered to be one of the most toughest, rigorous professional courses both in India and Worldwide. It covers subjects like Financial Reporting, Strategic Financial Management, Advanced Management Accounting, Information Systems Control and Audit, Direct & Indirect Tax Laws, International Accounting and Tax and 25 different subjects and modules.
Technology and Management Training
General Management and Communication Skills Course or GMCS is a 15-day mandatory course and was introduced in 2002 to improve business communication, presentation and interpersonal skills of Chartered Accountants. It is mandatory for everybody to complete and clear the course before obtaining membership.
Apart from this, there is 100 hours compulsory technology training which they have to undergo before appearing in exam.
Hence Indian CA are considered to be the most competitive Accounting professional in the world and hired for accounting across the world. Hence Indian Chartered Accountants are hired across the world in Middle East and Africa, Australia, UK and US.
CPAs hiring offshore part time or seasonal tax accountants
Over a period of time, CPAs have realized that hiring full time tax assistants results in increasing their costs in terms of having paid for sitting idle during non-tax season. They fail to utilize their skills and time which becomes a great loss to them. As a better workaround, they have started look around offshore part time or seasonal tax accountants. The biggest benefit that CPAs get is they have to pay only when there is an overload of work. Seasonal jobs help meet customer demands, increase revenue and maintain the company’s reputation. Employees may also be hired for seasonal jobs to prevent overworking permanent employees, which could cause them to quit.
But be Careful in selecting your Services Providers which is not that easy, please consider,
Local accounting firms whose main business is domestic accounting practices often lack talent and focus on US accounting nuances, and this considerably hampers the quality of work.
- Check the required certification and credentials.
- To the extent possible don’t outsource any of your work but hire dedicated professional from reputed service providers because it keeps your work under your complete control and at the same time makes the service providers responsible for their work.
- Check the technical and software know-how.
- Operations process.
- Security and Confidentiality measures.
- Experience in accounting business.