I am starting a new Knowledge series from today, where in you will get to read expert views from professionals from various fields. Here is the first one! By Nikhil M. Shevade a Chartered Accountant.
Myth busting CA profession
The profession of a practicing Chartered Accountant is having a romance with Taxation (pun unintended), since its inception. In early days of our Independence, tax rates were very high and there was a dire need for professionals like CA for tax planning.
But, 60 years hence, the CA is still viewed as a Tax consultant and expert. Taxation though influences Management decision making even today, is not the sole criteria to start, shut or run a business. There are other areas where a CA proves to be of vital importance. There is a galore of untapped areas waiting there in the wild to be harnessed, especially in a city like Belgaum.
The object of this write up is to break a myth or two about a CA and make the public aware of the type of services a CA is equipped to provide. The various areas, which are illustrative only, where a CA can be helpful, are:
- Information System Audit: In this era of technology, a CA well equipped with IT skills (and it is part of the CA curriculum!), combined with his in-depth knowledge of internal controls, can help Management to strengthen their IT structure to protect their organisation’s assets.
- Internal Audit: Adds value and improve an organisation’s operations. It is a valuable addition to an Enterprise’s internal control. Includes Management audit, Operational audit, Compliance audit etc.
3. Consultancy and Advisory services: In the areas of Foreign Trade Policy and procedures; setting up or developing 100 % EOU, SEZ, etc; compliance with various national rules and regulations including but not only restricted to Taxation like FEMA, labour laws etc; Finance Management and many other multifarious areas.
- Corporate Governance: Design code for the same, design Risk Management framework, Internal control framework
- Business valuations: like for Mergers and Acquisitions and takeover of another business.
- Forensic accounting: Which deal with Financial Fraud detection and investigation, misappropriation of assets, conflict of interests where a CA acts as a financial detective.
- ERP implementation and design: where a CA is an indispensable professional who can be relied right from the system design stage up to post-implementation.
- Various Audits: Environment Audit, Health and Safety Audit, Business Process Modeling and many others.
- Knowledge Process Outsourcing (KPO)
The above are a few areas which I can muster up at the time of this writing. The sheer scope of services provided is breathtaking.
Aspiring and existing CAs should aim at providing such services and not only restrict to Taxation and traditional audits.
The business community of Belgaum, irrespective of size or nature, who avail the services of a CA or not at present, should view the above services provided by a CA as a value addition and indispensable and benefit from the same.
About the author:
Nikhil M. Shevade is a practicing Chartered Accountant under the name M/s.P.G.Bhagwat
10 thoughts on “Knowledge series Myth busting CA profession: Nikhil M. Shevade”
Informative matter for all those who are in the field of Finance.
Keep it up. An experience gained at different places of audit will help in
preparing more & more writeup in future. Good luck in your new venture.
Thanks for your encouragement.
Knowledge series is a very much innovative. Mr.Nikhil Chartered Accountant has thrown a light on new areas where the businessman should look in to. Now in Belgaum we have many young chartered Accountants like Mr.Nikhil who will help the businessman to grow in a systematic way.
Thanks a lot!!
Very Good Nikhil !!!!
Right from the Heart !!!!!!!
Keep it up !!!
I must say that the article by Nikhil Shevade is not only surprising but also disappointing.
Who does not know the importance of CA’s that too in Belgaum – which has had some of the most senior chartered accountants some still going strong (and even above 80-85 years old some no more) – to name a few DB Kulkarni/NS Shivangi/CS Halappannavar/Marathe/Vinod Kulkarni/AD Deshpande/Kittur/Huigol/Ankhinde/Avinash Dixit etc.
But the real issue in Belgaum was not of what services CA’s can provide but where and for whom – the economic development of Belgaum being very slow for well known reasons – hence the services could not and even today are of not much use in the light of SMEs existence only….. though I hope that things will change due to IT developments and pioneering efforts of like Uday and his team.
IMPORTANT THOUGH IS:
If one talks about “Knowledge Series” that one must get the facts correctly – it cannot be and is not knowledge without fundamental research!
Dr. Neeta Baporikar
Dear Neeta Madam,
I have read a lot about you and very proud that my City Belgaum has intellects like you. I am not a writer and also not a critic. In fact I am humbled that you have criticized my “write up” titled “Mythbusting CA profession” published in AllaboutBelgaum.com. I am just a practicing CA who is doing his job. I respect the fact that many senior Chartered Accountants are existing in Belgaum and I have very deep respect for each and every one of them and their practices. They are doing their jobs and helping out the business community in Belgaum grow in a big way despite the problems we face. Hats off to all of them!! Here’s also a big thumbs up to all the business entities in Belgaum to collectively come up against all the odds! The object of my writing is not to criticize the services provided by existing CAs nor the availing of type of services provided by CA by the business community at large. It is only a presentation of the type of services that a CA can provide not only restricted to taxation, to make the business entities understand the gamut of services they can avail from CAs.
Over the past few years, though I am dwarfed by the experiences of your stature and respected CAs in Belgaum, I have observed the following:
1.If for example, a new ERP or software system is implemented by a business unit, there is no involvement of CAs who have indepth knowledge of Internal control systems and procedures which can protect them against frauds, errors, misappropriation, inaccurate MIS among other things. If his services are availed, there can be a smoother transition from legacy to the new system. Many system loopholes can be gapped before implementing the same.
2.There are so many frauds taking place in the business entities, Forensic accounting comes to the rescue.
3.Many of the business organizations view at CAs as only tax consultants. In fact, if you read any of our Institute’s monthly journals, you will see that they concentrate on things I have mentioned including but not restricted to Taxation laws and they encourage the business community to avail these other services.
I understand that the write up I have made out may not be / are not the only problems concerning the business entities at present in Belgaum, who are already bothered about other known problems in Belgaum mostly the retarded developments as you have rightly pointed out in your comment. My intention was also not to highlight all these problems faced by businesses in Belgaum as I am not the right authority to do so. However, you can contribute to the same highlighting these problems and not me. I can just write about what difficulties during my short span of practice, I have faced and also my clients have been facing but not aware of.
You might ask that the services mentioned in my post are mostly not applicable to Belgaum. But my intention was to provide just an insight into the services, just to give an idea of the scope. Whichever is applicable to an entity, they can think of the same. It is equally applicable to SME’s as it is applicable to all big entities like Tata, Birla, if that is what you are trying to bring out. I have undertaken some of the mentioned services in SMEs in Belgaum and they are happy with it!! The major bulk of myself and my father’s practice is SMEs as all the CAs in Belgaum.
This write up, I would also like to make it clear, is not for advertising a CA nor advertising my own practice. I know that is professionally bad ethic to do so and I have taken all due care in the post.
I cannot make out what is the point in calling this post a disappointment. I don’t understand the reason for the angry tone in your comment.
I request you to be a regular contributor to “allaboutbelgaum.com”, concerning the industrial scenario in Belgaum, which people like us and the business community at large, can hugely benefit from the same.
With all deepest respect to you Madam,
Ca. Nikhil Shevade
Proud to be Belgaumite.
Thank you for the reply, At the outset let me clarify that I expressed what I genuinely felt – there is no question of 'tone' either angry or otherwise, since it is a written comment …….
Nevertheless thank you for the reply and I do appreciate your point of view.
Hope to meet you in near future.
Dr. Neeta Baporikar
It would be my pleasure to meet you in near future!
Way to go mate..