Role of Chartered Accountant In India: Chartered accountants need to equip themselves understand how the procedure works and accordingly serve as an interface for the promoters and the venture capitalists. Undoubtedly the promoters understand more and will always continue to know more about terms of their business but chartered accountants know the numbers better than anyone else does and thus can always be back ending service for such promoters to give a good presentation and a good grasp of the affairs of the organisation with a possible investor.
The concept of virtual CFO
Chartered accountants along with other professionals like company secretaries are experts in the situation of secretarial compliance. As startup generally are in the kind of a documented company ensuring that the compliance’s of businesses behave 2013 is of high significance. Now the companies behave 2013 is an Act full of complexities and jargon’s that are changing daily and the alarms are coming very frequently that are leading into shifting of the legislation each next day or two. The penal outcome is that the act are important and start-ups cannot afford to overlook the compliance which are relevant to be duly complied with.
The simple fact that taxation is one of the main areas that are startup faces beyond the basic regions of finance and fundraising is just one of those criteria why chartered accountants play an important and crucial role to help smoothen the company operations.
The income tax advantages, the tax holiday period benefits, the freedom from inspector raj, the reduction in the price of patenting, digitalisation, smoother incorporation and number of other things will require a clear due diligence before it is implemented in the start-up.
The role of professional chartered accountants in the startup scheme launched by our Prime Minister is very important, comprehensive and vast. Since the partners in nation building it is definitely not only a chance in specialist domain but it is also a responsibility for curiosity about large. As we see that the rising complexity has made the business atmosphere comparatively difficult concerning identification of potential grey areas in which most of the start-ups may find themselves in. The main reason is the start-ups which we are speaking about are conventionally not Involved in normal routine trading activities but are largely involved in e-commerce activities.
His role will be to understand the regions of both non-compliance and ensure successful addressable of the issue if so demanded.
We are aware that lately our Prime Minister have established a start-up scheme for promoting and developing start-ups in India. A great deal of tax benefits and other important liberalizations have been provided these start-ups to make sure the nation booms with start-ups and the economic growth following it.
The majority of us know the concept of virtual CFO. For those who do not know I’d love to talk here. Now, why is this relevant for all of us. The relevancy is because the start-ups are generally coming from people who are not of finance background. They may be engineers or doctors or some other professionals having a brilliant idea and the fire to convert this idea into a prosperous start-up.
So today it’s crucial to measure and understand how can chartered accountants justify and assist entrepreneurs in making sure that the venture results into a profitable and successful experience. So, let us begin with few points which are relevant for our discussion.
We all know that a large part of the transactions in start-ups specially from the startup is the e-commerce participant demands a complete an exhaustive structuring in terms of the taxation and the relevant events that an provider faces. Hence the relevancy of a person well equipped with all the taxation laws whether it may be direct taxation, indirect taxation or any other tax involved.
Being professionals it is the part of chartered accountants, company secretaries and price accountants to ensure the start-ups are able to comply and adhere to the standards laid down by the businesses act 2013.
In such a situation there are extremely important areas to handle when it comes to the working capital and also the core seed capital of the start-up. Now here how can chartered accountants play a crucial role is very important to comprehend. I see that there are two key areas that to look for, one that one has to manage the banking affairs of the organisation in regard to monetary needs such as the banking etc, second is wider activity of raising capital by venture capitalists, angel networks or by banking systems.
Each and every impact and every single assessment can be clearly moves by chartered accountants domain and should be readily dealt with them. By way of instance, if a start-up is qualified to enter into this startup scheme shall be a chartered accountants domain. Next, if the start-up is accessible then the certification needed to input into this start-up scheme should be an additional domain. And the list persists.
Chartered Accountants are trained professionals who work in the finance area. For start-ups undoubtedly among the most key places still remains to be fundraising and controlling their capital. It is a difficult job to guarantee the vital expenses are being met off in precisely the same time the startup remains in a situation that’s manageable concerning financial profitability.
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