7 Things to Know Before Opening Chartered Accountant Firm
Amongst roughly 2.8 Lakh CAs registered under ICAI in India, around 1.24 Lakh are involved in full-time practice with a CA firm while around 8 thousand are involved in part-time practices.
Establishing one’s own firm ensures freedom of choosing clients, practicing according to specialisation, etc. While budding CAs can find the financial requirements to start a practice intimidating, lending institutions assure of assistance with their chartered accountant loans offering benefits crafted to suit an entrepreneurial CA.
Any CA with his successful firm always emphasises on the need of on-field training. With low number of practices in the country and a further less number of firms offering CA articleship, a successful firm assures of more opportunities for students. The underneath shows the low number of functional CAs and firms in India –
- Of 1.89 Lakh associate CAs under ICAI, around 55,000 are involved in practices.
- Around 75,000 amongst 90,000 of fellow CAs under ICAI have their own practice.
Considering the rising business opportunities across the nation, chartered accountant practice opportunities are immense. Ambitious students with the grit to establish their successful firms have enough scope of growth, though some basic issues must be planned beforehand. A step by step guide to starting a new CA firm encapsulates the things to know and consider before setting out on the venture.
The following are some factors to consider before opening a firm –
- Detailed business values: Every business venture is built on its core values, which define the functioning as well as services provided by that firm. While the basic functioning of any firm in this field will cater with similar services, these values define related services like those of holistic support, digital services, performance integrity, etc.
- Specialisation: A very crucial question before venturing forth is that of general vs specialised consultancy, which one should a CA firm choose.
While a general consultancy ensure clients from any and every field of business, specialised ones assure of expertise. Resultantly, it is imperative for a CA to know beforehand if the practice is to be general or specialised.
- Business strategy: Business strategy defines the qualities of an accountant which decide how a CA is to enter the industry with his or her practice. Generally, having specialised fields of expertise and emphasising on them aids in building up a client base. This can be further expanded over different fields with passing years of the firm.
- Client strategy: Clients, the base of any service, must be focused on before venturing into the business. Knowing the target clientele ensures formulation of related business strategies to acquire them. In this regard, online research as well as outreach works wonders. A guide to acquiring overseas clients along with online outreach can ensure regular contracts for a budding CA firm.
Client strategy also includes the aspect of pricing, which should be worked out beforehand as well.
- Establishing budget: Understandably, establishing the budget before diving into a venture provides estimation of financial aid that is required. This includes registration costs, location and office costs along with that of furniture, and client outreach, etc.
- Choice of financial assistance: Choosing the right financial assistance helps as much in the establishment as it does in repayment of the debt. There are numerous financial institutions with appealing business loans for CAs. NBFCs like Bajaj Finserv even brings you pre-approved offers that make availing loans straightforward and uncomplicated. Pre-approved offers come with numerous financial products like business loans, home loans, personal loans, and a list of other financial products. You can check your pre-approved offer by providing your name and phone number.
Establishing one’s own firm is almost synonymous with a solo business venture. While CA students are well equipped with logistics related to any firm or venture, the above provides a comprehensive list of issues to consider while establishing a CA firm.