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All About Accountancy: Part 1

In India, we have always added seriousness and gravity to the profile of a Chartered Accountant. In fact we also know that becoming one is a very difficult job that comes after taking  very difficult exams. However, a lot of what we think we know are myths and half-truths. In fact, Accounting is one of the streams pursued by a lot of students who take up Commerce as their discipline for specialization  and is in fact a fun thing for quite a number of students. Also Chartered Accountancy is not the only job that a study of accounting can provide you. Let us see some of the other profiles you can achieve and shed  more light on what these exactly involve doing.

 Career as an accountant involves reporting of company financials to different stakeholders, which can either be internal management or shareholders, lenders, creditors, debt holders, etc, and hence is a painstaking and even challenging one. But several people are cut out for it and handle the pressure pretty well.

As an Actuary

The course of actuarial science was first introduced in India in the year 2002 and since then it has been one of the most sought after courses. The governing body for training and educating actuaries in India is The Institute of Actuaries of India (IAI) that holds a common entrance test Actuarial Common Entrance Test (ACET) exam for selection of candidates for enrollment. An Actuary is a person who evaluates uncertainties and changes in future monetary developments and their financial impacts based on given information in the present or of the past. It requires a very strong command over mathematics, statistics and also business. It also involves  great communication skills. Commerce is quite often the apt background for pursuing this profile. You can earn up to  8-11  LPA with the top ten percent earning more than 50 LPA in India.

Most coveted Chartered Accountancy

Institute of Chartered Accountants of India (ICAI) is the regulating authority body that offers chartered accountancy course and certifies one as a Chartered Accountant after they have completed the CA course and are certified as one. Hence all practicing CAs are members of the ICAI.  CAs  are appointed as executor, company directors, and dispute arbitrators. The Companies Act in India mandates, in fact, that only a certified CA can be appointed to audit in any company of India.

In India, which is a fast growing economy, the need for CA’s every year is around 10,000. In actuality, it is a challenging job most definitely but also extremely lucrative and well paying. Average  salary is 7.3 LPA and the best earn more than 20 LPA.

The lesser known, Cost Accountancy

Costing is an important feature that most firms pay heed to in the face of heightened competition to maintain desired profitability. Cost and management  accountancies have therefore  ended up entangled in their demands in the management  environment. It is true that the profile was a lesser known one in previous times but with present day business techniques,  cost accountants are highly in demand. The Institute of Cost and Works Accountants of India (ICWAI) is the governing body that is responsible for regulating various professional courses and conducting  the exams for qualification as a Cost Accountant. Collection and assimilation of  financial information, followed by analysis and then report preparation for the management, all this comprises of a cost accountant’s  job. It is a purely internal job and much needed for framing corporate strategy. Median salary is in the range of 5 LPA with the best in the trade earning 10 LPA or more.

Follow our next article for the other professions  related to ACCOUNTING.  

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