Is it a good option to open a CA business immediately after passing the CA final exam or should we opt for a job in the early years and then open a business?

Updated on : December 3, 2021 by Ellis Murray



Is it a good option to open a CA business immediately after passing the CA final exam or should we opt for a job in the early years and then open a business?

In my opinion, if you have the slightest doubt, you should look for a job for a few years and then think about starting your own CA business. I have two strong reasons behind this.

The reason is;

  • First and foremost, when looking for a job for the first few years after clearing CA, you will learn how real life works outside the shelter of the article.
    I know that we have worked for almost 2.5 years as an article in some or another CA firm where we had gained the experience of how CA works in real life, but that is something different and opening your own CA firm right after becoming a CA it's a different thi
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In my opinion, if you have the slightest doubt, you should look for a job for a few years and then think about starting your own CA business. I have two strong reasons behind this.

The reason is;

  • First and foremost, when looking for a job for the first few years after clearing CA, you will learn how real life works outside the shelter of the article.
    I know that we have worked for almost 2.5 years as an article in some or another CA firm where we had gained the experience of how CA works in real life, but that is something different and opening your own CA firm right after becoming a CA it's a different thing. In articulation, we do not have much responsibility, which means that most of the responsibility falls on the director. He / she will sign the work and only he / she will be responsible for anything good or bad that happens. Our responsibility is to work only, the main responsibility is not ours. So, as we have not worked with much responsibility and when we suddenly opened our firm, That responsibility rests solely with us and then we have to face some challenges and ups and downs to make our firm a successful CA firm. Then,
  • Another reason is that when you do a job for a few years, then you will make some connections that will help you when you open your company. Seeing the connections and building client relationships is the key to making your firm a successful CA firm, because when you have connections, then somehow you will get clients easily and the growth of the firm will be that much better. Just by opening a CA firm, customers won't start coming in, so making connections is vital.

Therefore, I highly recommend that you do some work for the first few years and when you have enough experience to be able to open the CA firm then you should open. But if you have a sponsor in the industry, a local business, or are absolutely determined to practice, then go for it. There is no need to waste a few years on the business grind.

In general, people find it difficult to switch from job to practice after a few years. The extensive knowledge required in a broader spectrum of practice areas is not available at Job. It is as if you were a specialist, in a job, and you had to do the generalist task in practice. So the transition from work to practice is quite difficult. The reverse is equally true, as your practice experience (as a generalist) is not considered for specialist positions on a job.

Are you passionate about the practice? Are you prepared for lower cash inflows during the first few years? Then you can start practicing

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In general, people find it difficult to switch from job to practice after a few years. The extensive knowledge required in a broader spectrum of practice areas is not available at Job. It is as if you were a specialist, in a job, and you had to do the generalist task in practice. So the transition from work to practice is quite difficult. The reverse is equally true, as your practice experience (as a generalist) is not considered for specialist positions on a job.

Are you passionate about the practice? Are you prepared for lower cash inflows during the first few years? Then you can start practicing right away.

However, I suggest that you become a partner in an existing CA firm with multiple branches and multiple partners. Whether it is a partnership or a limited liability company,

The days of individual practice or practice in Sole Property are numbered. Unfortunately, most government tenders for internal audit, statutory audit, GST audit, compliance services, etc. favor multi-branch and partner CA signing.

You need a good mix of clients: private and government. You must offer a basket of professional services, and prequalification for many of these services will be more readily available at a multi-branch, multi-partner CA firm than with a CPA practicing on your individual behalf or sole proprietorship firm.

It is time for Chartered Accountants, especially younger ones, to realize this sooner rather than later, so that they can improve and accelerate the growth rate of their profession.

Candidates interested in becoming a partner of a multi-branch, multi-partner CA firm can submit their resume, membership number, and date of birth to the email id indicated in my profile.

Hi Harshit,

The fact is, I started my company immediately after becoming a CA. I spent my CA finals in July 2016 and then started a firm in December 2016, thus becoming the youngest CA in practice in our area, where there are over 500 CAs within a 100km radius.

However, many are not comfortable with it, so do not do anything you are not comfortable with.

It depends on many things.

I would say if you feel like starting practicing, do it right now.

The market is cool and good. GST and demonetization have been of great help to us. : P Customers are moving away from experienced CAs, so

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Hi Harshit,

The fact is, I started my company immediately after becoming a CA. I spent my CA finals in July 2016 and then started a firm in December 2016, thus becoming the youngest CA in practice in our area, where there are over 500 CAs within a 100km radius.

However, many are not comfortable with it, so do not do anything you are not comfortable with.

It depends on many things.

I would say if you feel like starting practicing, do it right now.

The market is cool and good. GST and demonetization have been of great help to us. : P Clients are drifting from seasoned CAs, so don't miss out if you can push too.

Because the practice is hard. Sometimes I lose clients. I don't get paid for my fees within 3 months most of the time, but overall it's fun. You need to study hard, work hard (I was working all day on Diwali too), network, and even enjoy your work. And you will love this more once you can learn the trading tactics.

By the way, I already have earnings within a year. :)

I hope this helps.

All the best.

Greetings,

Aditya

Once you've tasted the much higher earnings from a job, it's doubtful you're in the mood to start a practice and suffer from the much lower earnings and associated uncertainties.

If your ambition is to be alone and if there is someone to support you during the first 4, 5 years of gestation in private practice, in my opinion it is better to start the practice immediately after qualification.

To gain experience, I suggest you accept senior CA assignments, many of which outsource a large amount of work. It's best to start networking from day one after joining CA.

It is n

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Once you've tasted the much higher earnings from a job, it's doubtful you're in the mood to start a practice and suffer from the much lower earnings and associated uncertainties.

If your ambition is to be alone and if there is someone to support you during the first 4, 5 years of gestation in private practice, in my opinion it is better to start the practice immediately after qualification.

To gain experience, I suggest you accept senior CA assignments, many of which outsource a large amount of work. It's best to start networking from day one after joining CA.

It is not so easy to start your practice when you are older and have a family of your own to support. It is better to suffer low income when you are alone!

A2A

Honestly being a CA student this question haunted me as well and there were plenty of answers telling me why I should choose internship or job and the pros and cons of both sides.

However, there was a GMCS speaker who gave a nice and compelling train of thought for this. What he said was:

If Practicing is what you just want to do, do it. If you dream of doing a job to the end, do it.

If you are confused, ask yourself this question: "Do I or my family have financial problems?"

Now, what is a financial problem? Or rather, what is not a financial problem?

If you and your family don't want

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A2A

Honestly being a CA student this question haunted me as well and there were plenty of answers telling me why I should choose internship or job and the pros and cons of both sides.

However, there was a GMCS speaker who gave a nice and compelling train of thought for this. What he said was:

If Practicing is what you just want to do, do it. If you dream of doing a job to the end, do it.

If you are confused, ask yourself this question: "Do I or my family have financial problems?"

Now, what is a financial problem? Or rather, what is not a financial problem?

If you and your family will not be greatly affected financially if you do not win in the next 2-3 years and will be happy to continue as you are today, then you are not in financial trouble.

So if you don't have a financial problem, try practicing, but if you are in one, you need to get a fixed income job and put yourself in a stable position because practice is just like any business with ups and downs. If you have a stable financial position, you can survive even a bad phase and also be able to provide better quality services.

So, find your needs and decide accordingly, but make sure that whatever form you choose, you will be earning good sums.

I don't like to beat around the bush and prefer to share my views directly. It is a bad idea to implement directly after clearing. Work in a CA company for a couple of years, first create a network of people. More preferably, join a medium-sized company rather than a large one4. Big4s only have companies as their clients and the network you build will not be of much help because companies that have big4s as auditors would never appoint a start-up company for any service. Work for two or three years, create a network of potential clients, learn how things work in a CA company outside of your work area, as an administrator.

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I don't like to beat around the bush and prefer to share my views directly. It is a bad idea to implement directly after clearing. Work in a CA company for a couple of years, first create a network of people. More preferably, join a medium-sized company rather than a large one4. Big4s only have companies as their clients and the network you build will not be of much help because companies that have big4s as auditors would never appoint a start-up company for any service. Work for two to three years, build a network of potential clients, learn how things work in a CA company apart from your area of ​​work, such as administration, human resources, recruiting, customer relations, etc. good amount of capital by then. Once 2-3 years have passed, you will find out if you see yourself doing the same job for the next 20 years. Then decision making will be easier and you will be more informed. Period.

If you have done your article in a good company and you have good connections in the market, as if you could bring 6 to 7 clients first time, then you can open it.

It also depends on the money requirements of your family side, because in the company you will have problems for the first year and a half, then you can understand a lot if you work.

Other than that, initially marketing and business development are necessary components to do.

I feel that if your financial conditions allow you to go with a low level of icon in the early years and you have done articles in a true way and you are good at interacting with people and you would love to develop yourself.

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If you have done your article in a good company and you have good connections in the market, as if you could bring 6 to 7 clients first time, then you can open it.

It also depends on the money requirements of your family side, because in the company you will have problems for the first year and a half, then you can understand a lot if you work.

Other than that, initially marketing and business development are necessary components to do.

I feel that if your financial conditions allow you to go with a low level of icon in the initial years and you have done articles in a real way and you are good at interacting with people and would love to develop business relationships, then you should go ahead with the CA firm. . .

It is a very complicated situation after qualifying as a Certified Public Accountant.

I suggest that you make this choice based on your background. If you come from a business family, you better get into the practice, as you will have enough capital and clientele.

But, if your parents are not in business, I strictly suggest that you look for a job at first and after you've built up your capital and clientele, go into practice.

But of course this is just a suggestion and there are many exceptions. You have to do an audit of your own abilities and decide.

Practice Vs Job is a big question mark for CAs. Especially if you come from a non-CA family.

Considering the risk and opportunities at stake, it would always be best for a newcomer to put together a healthy work experience, whether in industry or in a consulting firm.

However, if you have a strong appetite for risk taking and a strong financial position, you can always choose to practice, but make sure that practicing is equivalent to a start-up where the cash flows are uneven and indirectly proportional to the amount. hard work you put in. they are investing.
On the other hand in ca

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Practice Vs Job is a big question mark for CAs. Especially if you come from a non-CA family.

Considering the risk and opportunities at stake, it would always be best for a newcomer to put together a healthy work experience, whether in industry or in a consulting firm.

However, if you have a strong appetite for risk taking and a solid financial situation, you can always go for the practice, but make sure that the practice is equivalent to a start-up where the cash flows are uneven and indirectly proportional to the amount. hard work you do. they are investing.
On the other hand, in the case of a job, the growth opportunities are limited but the cash flows are permanent.

Do a SWOT analysis before making any decisions, the most successful startups are the ones that thought of Start Up.

In the US, you will unequivocally need relevant work experience and a reference base, among other things. Starting a business is not simply a matter of being able to do some work of value individually.

I will become anonymous to hide my identity.

I am a qualified public accountant on the fifth attempt in 2010 and started practicing after working for a qualified CA firm position for the first 2 years. In these 2 years, I had few contacts with CA, clients and tax officials.

Later, I started my own practice, although at first I struggled for 1.5-2 years and was able to do 2-3 lac per year, but later I started taking risks (an unethical way, although I do not recommend it) and contacts that I built. able to do 14 lac in 3rd year, 19 lac in 4th year, 28 lac in 5th year and after that there was no look

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I will become anonymous to hide my identity.

I am a qualified public accountant on the fifth attempt in 2010 and started practicing after working for a qualified CA firm position for the first 2 years. In these 2 years, I had few contacts with CA, clients and tax officials.

Later, I started my own practice, although at first I struggled for 1.5-2 years and was able to do 2-3 lac per year, but later I started taking risks (an unethical way, although I do not recommend it) and contacts that I built I was able to do 14 lac in 3rd year, 19 lac in 4th year, 28 lac in 5th year and after that there was no going back. Now I earn an average of Rs 1.12 crore a year just from practice and also have another source of income. Now everyone is happy around me.

I have gone from the category of middle class to the upper middle class. I remember the teasing I used to get from my relatives when comparing me to other CAs who were able to break in very few attempts, they had a good organization to work with a decent package, I remember the various girls I met in marriage sites who were waiting for decent package and property to marry as a condition of marriage. This kind of ridiculousness and rejection motivated me to work harder and take risks, which ultimately resulted in what I wanted in life, namely "financial freedom."

Now I am financially free, but I had hired two CAs who had solid knowledge to take care of GST and income tax. I started learning from them and a few other CA friends and now I am phasing out all the unethical work and moving forward to acquire decent clients.

So for a cooler CA it would be a struggle for the first few years, but if you are determined and have a decent knowledge of field work and how to promote yourself, then you will be able to generate more than the amount you would otherwise earn from your job. I know few friends who started practicing as cooler CA earns around 12-30 lac annually in 5-6 years after practice.

Edit:

I practice in one of the metropolitan cities and pay a stipend of 6k, 7k, 8k in the year 1,2,3 respectively.

I cannot share these things openly as it would be risky for me and the clients I work for.

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