Every newly qualified CA faces this question : Whether to join a job in the industry or start CA Practice. While there are many CAs who, while they are pursuing CA course have a clear thinking about what to do in future, but most of the CA pass outs are not clear about what to do after qualifying. It is clearly evident that it is a very crucial decision as it is concerned about our future, personal life and professional life both are affected by this decision. So it is utmost important that this decision should be taken with a calm mind with all the factors considered and advice of all concerned, and our own interest and abilities whether to go for practice or take a job in industry.
Before taking any decision, pros and cons should be considered. There is no hard and fast rule regarding job or practice that once we chose a particular option, we can’t change that option later. Generally, who have a practice mindset, in the initial phase (4-5 years) go for job in industry, as fresher/average jobs are available in plenty and income is guaranteed and practice requires initial investment, making a good client base takes time, goodwill building in the market takes time. CAs from middle class and upper middle class background who cant wait for own CA practice set up time and investment, go for jobs which also gives them exposure in the industry and timely salary payments.
For those who go for own CA practice, the advantage is that you don’t have to report to somebody, unlike a CA in industry who reports to Department head/CFO or the Director, so there is a flexibility in your way of working. In practice, you have to continuously read and update your skills so as to give best services to your client, and for your mistakes/shortcomings you are responsible and will have to bear the loss, monetarily or in terms of reputation. Similarly, a CA doing job in corporate is also expected to be well versed with the latest skills but in a corporate environment, he has superiors and Directors and external consultants, so he is not accountable to larger extent for his mistakes and shortcomings, unless there is a bigger problem.
While, for a CA doing Practice and a CA doing job in industry, the various skills required are more or less the same, example : Communication skills, leadership skills, updating technical knowledge and latest IT knowledge (Computers, Software etc.), being proactive, meeting deadlines, creating win win situations with clients/customers, there are some differences specific to CA in practice and job. A CA in practice is required to get work done from article clerks apart from teaching them the subjects like Income Tax, GST, Auditing etc. As he is responsible for the work entrusted by the client, he has to check the final draft copy of reports and tax calculations etc. before submitting it to client or government authorities. He has to regularly attend seminars, read books, do networking to remain updated with the latest changes in the law. Besides, he has to ensure proper billing is done and dues are received timely, so that he can pay the office expenses such as electricity expenses, rent, salaries, stipend and other expenses. On the other hand, for a CA in job, receipt/income is not a problem, as in a corporate setup he gets timely salary. For a CA in job, his major work is to get work done through the staff and to see to it that the other outsourced work such as Tax consultants, Labour Law consultants, ERP Consultants, etc. are all properly coordinated and work is done as per the instructions of the Management.
It actually depends upon the inclination of an individual. Both options are equally better, CA practice and CA job. A CA who joins a Company as a Management Trainee at the age of 25 and has decided to pursue this career path till retirement, becomes a CFO, Director Finance etc. and thus we see that he has progressed a lot. Similarly a CA who starts CA firm at the age of 25 and works with full interest and dedication, after 2-3 decades, reaches a prominent seniority level as a CA professional and progresses by leaps and bounds. The decision whether to go for a job in industry or start own CA firm should be taken after a detailed analysis considering all the relevant factors. For example you have got exposure in small sized CA firm, where you learnt Income Tax Return Filing work, Balance Sheet preparation, GST, Tax Audit work and you are confident that you will handle this work profile, then if you are willing to face initial 2-3 years struggle, then it will be beneficial to you in long run to start your own CA firm, as this work is of your liking and you are expert in this work. But if you have a liking for statutory/internal audit of listed entities or PSUs, then you have to join a Big CA Firm and you cant start your CA practice in the initial phases of your career.
A CA in practice has a large knowledge base as compared to a CA in industry because he has clients in diverse industries such as retail, advertising, pharmaceuticals, real estate etc. unlike a CA in job whose knowledge is confined to the industry in which he works. This is also one of the criteria to decide whether to go into practice or job in industry. If a CA is not much academically inclined, then its better to go for job, because practice requires reading many guidance notes, auditing and accounting standards, case laws, latest amendments in law, meeting deadlines, interacting with Government Departments, tackling complex issues of internal control, statutory compliance of clients etc. Similarly, work of a CA in industry is also not less challenging, because he has to manage the whole accounts department, supervise the work of the juniors, check their work and modify/correct the mistakes, if, any. Apart from that, working capital management, monthly, yearly statutory compliance, such as GST, Income Tax, (including adhering to deadlines to avoid penalty or interest), Ledger Scrutiny, Accounts Receivable, Accounts Payable, Internal Control, Handling Statutory and Internal Auditor, Reporting to Directors about the Financial Statement Preparation and day to day functioning of accounts department, ROC Compliances, handling notices received from various government offices such as GST, Income tax, Labour Law, SEBI, etc. Both options are equally challenging and rewarding, but it depends upon the individual’s decision based on his preferences and areas of interest.
To conclude, though the decision is not easy to make whether practice is beneficial or job, it is general observation that a newly qualified CA has a general idea of his strengths and weakness, likes and dislikes, family requirements (whether there is emergency need of money in the initial 3-5 years after qualifying) and what is the prevailing state of economy, accordingly, he will be able to decide which is the better choice as per his particular case/circumstances. It will be highly useful if inputs are taken from seniors, principal, mentors, close friends, well wishers and parents, before deciding a particular course of action.
Author Bio
