What you start thinking when you hear news of some foreign accounting firm taking over a small or medium scale CA firm or any other such professional firm. When you hear more and more chartered accountants are joining Big Four or Big Ten firms (most of them are foreign companies). Can you think of these incidences as wake up calls for our profession?
If no, then I am sorry, we are in grave danger. (First mistake is that we are not realizing it).
Even if you think it as wake up call, we are still facing that challenge ahead of us. We have to move mountains to face that challenge. Now, let me not puzzle you for longer and come to the point.
There was a time in history of developing India when multinational companies started coming to India and with their world class technology and work culture, they progressed in leaps and bounds. After a passage of time, somehow, we were able to insulate ourselves from the grave repercussions that lie ahead. (Don’t worry, we still have to face it now even if we have given deaf ears to the problems).
But, here I want to make a different case, I want to talk about the problem that lies ahead of Indian Accounting Profession. The probable victims are Indian Chartered Accountant practitioners. (If we don’t take steps at the moment, this moment, right here, right now).
Now, let’s analyze what is missing in our profession. First and foremost problem is that we are not building people oriented, people centric, people caring organizations (whether its small or large, whether it’s a service industry or manufacturing industry. Of course, you will find few exceptions).
Hence, the cycle of depression in our profession begins. Here we go. Let’s see what exactly happens.
Step 1. Dissatisfied employees lacks happiness.
Step 2. Unhappy employees cannot innovate or work full-fledged on creative work and bring around new ideas. (Happy employees are 12% more productive than normal employees – http://www.theguardian.com/science/2010/jul/11/happy-workers-are-more-productive)
Step 3. Lack of innovation and deficient employee morale leads to sub-standard services (Concept equally applicable in manufacturing industries)
Step 4. Step 1-3 leads to lesser satisfaction of clients and customers and results in lesser turnover and lesser progress of your organization.
Step 5. Your customers and clients start searching for better products and services. And eventually finds out that your fellows are suffering from same problems. And ultimately finds out that Big Ten foreign firms are very efficient and they charge hefty fees. But gives better services. (of course, who will be willing to take bath with an Indian soap when you get a Quality soap at a little higher price, people don’t think much about price when there is a quality concern). Stressing on selection of foreign firm’s services does not mean they are smarter than us. Who runs their firms after all? Are they all white people? No, they are like you and me. Foreign version of Indian people like all of us. We run the MNCs in India and all over the globe. Where you don’t find Indians working, just keep in mind their government is fearful about our presence (like Obama who did not allow Modi to come to United States, lol). We should be proud to have smarter brains than any other kind of people around the globe. (Sorry, am not sure about Japanese people, LOL).
Step 6. Results of above steps – foreign exchange outflows and slow growth of domestic players.
Step 7. Slow growth of domestic players makes them think to go for merger with a big corporation (I don’t know what must be the reasons and what they must be tempted by, but the discussion requires another write up. Will think and give it here for benefit of all). One of the reason they feel is they think they cannot compete big MNCs. It’s better to join hands and earn out of the association. (They don’t realize that ultimately who suffers? Our own business community which will pay hefty fees of the MNC professionals).
Step 8. Takeover by multinationals adds further problems in economy. (Of course, only if the MNC is optimistic about the takeover and expects to earn in millions, then only they will go for the takeover, don’t think you have made fool of them. It can be a reverse scenario.)
Step 9. Above all steps results in existing employees woes. Fears haunts them every now and then. They starts thinking that there are blink chances of progress here, let’s move away. But they will observe that all domestic firms and organisations are working on the same principles (profit centric principles, all for themselves, nothing for others). Then he will feel, let’s join hands with Big Ten. (Just like small and medium firms does), at least I will get a better paycheck if not satisfaction of work, if not recognition.
Step 10. We have been worrying about brain plight from India to Foreign countries (for last two three decades and at present also). And now, on this day, more and more MNCs are coming to India, hence we are giving deaf ears to the brains that joins MNCs day in day out. (I don’t know whether I am making the point clear but I feel, the same can be called as brain export. And the brain works for a foreign company. The difference is just that the brain is resident and not an NRI.)
Note:- Very serious note from me, my personal views – Presence of MNCs or MNC service providers like big ten firms does not mean we, small and medium practioners are not capable to provide world class services. Of course, we can.
But
“kuchh paane ke liye kuchh karna padta he, kuchh khona padta he, kuchh an-dekhe sapne dekhne padte hai, kuchh mushkile jelni padti he, kuchh anchaahe kadam uthaane padte he, kuchh naye khwaab sajaane padte he, Insaano ki kimat samajni padti he”
Inputs should be world class in order to match outputs to the world class. Our inputs are our people, our employees and our ideas, our employees’ ideas and creativity and innovative capabilities.). When we start recognizing them, valuing them, the days are not far when we will soon become world class and Chartered Accountants will join the small and medium firms leaving behind the glamorous MNCs. (I hope, you are not facing a situation at this moment where some of your young chartered accountants are joining big four and waving you good bye)
Before the situation goes out of control, we should work towards solving it. I think it’s late, but its better late than never. We can make a difference, if we think we have to. You can contact me anytime for a detailed discussion about the possible solutions for this. Presently, I am not charging anything for sharing my ideas. Lol. It’s a social project for me, I feel it’s my responsibility to save my profession. Will surely think on possible solutions and will give a detailed article on taxguru.in once again.
Thanks to Taxguru Team. The pioneers for creating a change.
(Written By CA Rajesh Pabari. Contacts carajeshpabari@gmail.com for feedback and sharing your view
Read More Articles from CA Rajesh Pabari
Author Bio
Kindly read me in proper shade !
All you people are fools !
This is a profession of deceit !
Here the law of jungle applies or the law of big fish eating small fish !
Do not expect anything gr8 from the govt. of the day . the current and all the previous govts. and the future govts. of bharat are impotent to fight with the foreign invasions .
This modi govt. is made by foreigners to protect and proliferate their notorious interests like FDI in retail , 100 smart cities , land acquisition , GST , DTC , FDI in insurance etc. etc . Modi sarkar is only the puppet of MNCs . There is no hope , the CA profession will be doomed !!!!
Only hope is from the street not from the parliament !!!!
Rebels required , not C.As (C.A is not more than a book-worm !!!)
Am planning to write a detailed article for staying away from home loans.
Awaiting for time.
Thanks all for nice response. Its giving me better ideas to fight out the situation. Keep going.
I think ICAI AND our members are in euphoria that they are best and want to dictate each and every terms. I think this situation has comes because we have stretched rubber band too much. I think this movement has to be from top bodey to realise and face the situation and try to solve one by one. For example if it is tendering why not ICAI asked every body to make request of auditors to them and ICAI provides them list this are persons/firm who have experience you select them on basis of that. Second could be restrict MNC firms to first get registered in india (But Question Can icai do that as max members at council will be from this firms), There are many small steps but hard hit to be made but sooner we realise it better for all of us and profession otherwise end is near
Nicely written words : “Foreign version of Indian people like all of us” and Stay away from Home Loans 🙂
Thanks for sharing such wonderful thoughts!!
Thanks a lot all for frank and fearless expression of your ideas.
I will fight tooth and nail for changing this scenario.
We can work together for fighting this situation.
Dear Rajesh,
You have very nicely presented the issues getting faces by small & medium practitioners. And the biggest thing is … each of us professional is aware of this issue. But very few are bothered. Problem is that people are fearful. People are afraid to lose. looking for change might steal their existing earning capabilities. Though being aware, they are not ready to fight, or bring any change. It needs great determination to fight big giants. People are stuck in their life’s day to day issues. People need money for their regular living, and they end up working with MNCs and sacrificing their dream / ultimate goal. People needs to be made aware about importance of Working with Indian Firm. Good leaders are needed. our senior professional should think on these matters. Senior Indian CAs working in these MNCs should think on this. we as professionals should come together and share our capabilities. Thanks. CA Shobhit Jain +91 9220955615
Very True Sir. Today nearly average pass put of last 3 years do not have jobs. The value of CA education perceived at the time of education/study is loosing or infact lost. In an industry marketing / HR professional turn out and paid well compared to hard studied CA. Working in big 4 is call of individual as after some years he experience difficulties in decision making and actual hard technical topics. An introspection required why CA?
one more i wish to add to your views!! its a real experience of me!! As we are aware we CA’s are not permitted to advertise for our professional work “professional Ethics” says so!!.
But few months ago i gave a proposal for a audit of a Netherlands based company in bangalore which is into mail management services!! it was all through. After many appearance before and several presentations At the time of fag end of the approval of our firm as Auditor, we were told that one of the international firm who is performing audit of the parent company has made a compulsion to appoint as auditor for the indian subsidiary. We lost an for MNC who is paid fees of 3times more what is charged by us and also which works out to 10% of the turnover. Is this not advertisement!!?? this also will add to your views!!
a Superb analysis!! its true!! all the small and medium sized firms to join hands and contribute for the professional development culture & ” knowledge based work culture” which will solve all the limitations which you have mentioned in your Valid article!! Hats off!!
Thanks pals, lets work towards the same.
A better future awaits for the smart brains.
Stand out from the crowd and write your own destiny.
Stay away from Home Loans. They will kill you from bottom. It will kill your entrepreneurial capacity and thinking.
An Awesome Article and Comments at above.This article helps to boost up new and existing CA to save their profession form white man again, which is going to surrender in their hand.
Adding this in my opinion as CA Rajesh Pabari and other CAs raise their voice on this grave danger and also suggest their solution our institute ICAI has to also take strong & qualitative necessary steps for existing and newly qualified CAs.ICAI should conduct a programme for newly qualified CAs and Existing small and medium firm “how to overcome shortcoming for providing services to client” as CPE hours. In which the programme should based on for providing qualitative services,Documentation and presentation to client and sharing ideas between our CA family which most of CA-Student not able to learn in articleship and from text book also.
Monopolistic attitude and fear of competition will lead to this type of situation.
TOO MUCH PROTECTION OF MEMBERS BY ICAI (FINANCIALS) WILL LEAD TO SUCH SITUATION ON THE PRINCIPLE OF ACTION & REACTION OF EQUAL & OPPOSITE AND THE LAW OF DIMINISHING RETURNS. AFTER ATTAINING MAJORITY A PERSON DOES NOT NEED AID FROM PARENTS. THEREFORE ICAI (FINANCIALS) SHOULD STOP BEGGING BEFORE GOVT. AGENCIES WITH THE MANTRA OF PROFESSIONAL OPPORTUNITIES. IF IT IS CONTINUED THE MEMBERS WILL STICK ON TO RS. 100/- & RS. 50/- JOBS BY WAY OF ATTESTING BANK ACCOUNT OPENING FORM. HENCE, IT IS SUGGESTED TO ICAI (FINANCIALS) ALLOW THEM TO GROW ON THEIR OWN BY EXHIBITING THEIR CAPACITY. YOU NEED NOT PROPAGATE THE CORE COMPETENCE OF CAS. PUBLIC SHOULD RECOGNISE SUCH COMPETENCE
I am agree with you. But as of now, we don’t have an option in near future (as young chartered accountants). Majority of the people are not happy with working for big accounting firms, but in this competitive world and rising inflation, they have no option but to join Big accounting firms. I have seen people working for small and mid-size Indian accounting firm at a discount of 40%-50%. He will also see peer group’s earning and growth year after year and he may be forced to join the big firms.
But I must say “Change begin with an individual”. We see many news coming for irregularities (foreign aid, scandals, etc.), but accounting and regulatory bodies are not investigating much (at least result of Investigation/actions are not generally being published).
gr8 article an eye opener n waking call for ca fraternity
Hats off sir.