Confused between what and how to choose between CA and CS? Let us discuss about what should we choose and which has better scope in the market. Two popular degrees in the Commerce discipline are Chartered Accountancy and Company Secretary. CA and CS are often chosen courses following 12 Commerce and are typically seen to be connected in terms of course content and professional career profiles. However, while they may appear to be the same, CA and CS are two distinct courses that focus on two distinct areas of an organization. They are also regarded as one of the most difficult tests in India. For those who are unsure how to choose between the two, here is a blog that explains the difference between CA and CS.
Who is a Chartered Accountant?
A Chartered Accountant, or CA, uses their accounting skills to advise their customers on their financial goals and to ensure that all tax activities are compliant with provincial and federal regulations. Their tasks include tax planning, account review, and accounting solution recommendations. Because of their accreditation, Chartered Accountants are frequently more sought after and have more responsibilities than regular Accountants.
Chartered Accountants are undeniably popular and well-liked members of society. They are the only professionals in India authorized to audit a company’s financial statements.
The training is provided by the ICAI (Institute of Chartered Accountants of India), ensuring a prosperous future and limitless professional options. Though Chartered Accountancy is only recognized in India, the course is tailored to meet the requirements of Indian laws and norms. As a result, a Chartered Accountant can contribute to the growth of a country’s economy.
The Importance of Chartered Accountants
Chartered Accountants are important for the following reasons:
- Chartered Accountants are welcome in many local, national, global, and worldwide enterprises.
- New legislation that have been enacted in our nation in recent years have greatly raised the need for Chartered Accountants, and it is expected that the next 5-10 years will provide an abundance of golden chances for newly qualified CAs.
- The chartered accountant is knowledgeable in the stock market, foreign exchange, regulation, and financial taxation. They assist everyone in comprehending the norms and regulations.
- The market demands a CA who specializes in stocks, IPOs, insolvency, mergers and acquisitions, and merger and acquisition assessments.
- It includes providing advice, developing plans, and auditing the organization; the CA must be familiar with reports and changing business conditions.
- Audit and accounting are concerned about data protection against cyber fraud.
- Another important reason organizations need Chartered Accountants is globalization.
The Role of Chartered Accountants in the Indian Economy
The Chartered Accountant’s Role in the Indian Economy is as follows:
- Chartered Accountants are essential not just for assisting businesses in keeping track of their finances, but also for the development of a country’s infrastructure.
- CAs, as an economic cornerstone, may aid the government in various financial and economic measures to improve the ailing Indian economy and boost industrial growth.
- A chartered accountant is in charge of a variety of responsibilities, including tax planning, capital budgeting, budget forecasting, finance, and bookkeeping.
- As a result of the adoption of GST, the function of Chartered Accountants has increased considerably in the current environment.
- The role and abilities of CAs were effectively used in the creation and implementation of GST.
Who is Company’s Secretary?
A company secretary is also assigned to the highest level in a business, the Managerial Level. This individual is in charge of the company’s seamless running and must guarantee that all legal criteria are met. A company secretary is a member of the Institute of Company Secretaries of India (ICSI) or has the required qualifications.
The Companies Act, 2013 has been changed to compel companies with at least 5 crores in paid-up capital to appoint a Company Secretary. Company secretaries advise a board of directors in these critical areas utilizing their extensive skill set in finance, corporate law, governance, and corporate secretarial practice. They assist the Chair, CEO, and non-executive directors.
A company secretary works in a variety of organizations across all industries, including commercial companies, government agencies (such as local government agencies and the NHS), and non-profit organizations (e.g. professional bodies and charities.) Some run their own businesses as sole practitioners, small partnerships, or employees of professional services organizations, providing corporate secretarial services for a fee to a variety of customers.
A company secretary is more than simply an employee; his abilities and in-depth knowledge of business regulations may propel a company to new heights. He specializes in corporate law and interpretation. As a consequence, he can grasp every legislation that a company must follow, such as labour, tax, banking, and others.
Importance of Company Secretary
The company secretary is an important component who must carry out his duties with care. He must ensure that all corporate operations conform to all legal standards, in addition to working as a legal mentor; otherwise, he may be held liable for wrongdoing and dismissed for deception or violating the company’s legal rights. A company secretary serves as a vital link between an organization and its owners, board of directors, regulatory authorities, and other stakeholders.
Role of Company Secretary
The following are the responsibilities of a company secretary as defined by Section 205 of the Companies Act:
- To initiate and carry out incorporation procedures, such as authenticating papers and registration processes.
- Ensuring that allotment and registration information is delivered to the registrar
- Applying for a share capital increase and monitoring the delivery of allocation share certificates
- Maintaining a list of share warrant holders
- Following the law and filing yearly returns
- To get the beginning certificate, the statutory declaration must be released.
- Keeping track of the mandatory books
- Meeting updates and general meeting announcements are distributed to all members of non-banking financial entities.
- Financial statements and reports must be authenticated and signed (Balance Sheet and Profit & Loss Statements)
- Within 30 days, file a resolve with the registrar.
- Keeping detailed minutes of all board and general meetings
- Additional Act-mandated requirements, such as alerting the Board of the Act’s compliance, must be met.
- Making certain that the company meets all required secretarial standards
- To carry out other obligations as specified by the Companies Act, 2013
Let us discuss our point of concern that is How to choose between CA or Cs? For this we tried to simplify this by answering for you.
Why should you choose CA over CS?
The following are the reasons why you should choose CA over CS:
- Higher Salary and Incentives – Chartered Accountants are paid between 6 and 7 lakhs per year, but the average CS salary in India is around 3 to 4 lakhs.
- High Society Respect – Chartered Accountants are widely esteemed in society, particularly in areas where you practice rather than serve a company. They are consulted for numerous areas such as finance, cost, accounting, auditing, taxation, and so on, whereas a CS is only contacted for Company Legal Matters.
- Financial Auditing – Only Chartered Accountants are permitted to sign the Company’s Financial Statements. Only after the CA’s signature may financial statements be referred to as Audited Financial Statements and provided to the company’s shareholders.
- Opportunities Abroad – The scope of Chartered Accountants is not restricted to our country. The ICAI has collaborated with a number of international professional groups to expand the global reach of Indian CAs. There is a high need for Indian Chartered Accountants in the Gulf countries, as well as in Australia and Singapore.
- Produce True Professionals – As everyone knows, three years of practical training are required as part of the Chartered Accountancy curriculum. This instruction transforms CA students from raw diamonds to polished gems. They emerge from three years of practical training as real professionals, ready to lead the industry as soon as they become CA.
- Priority over CS – CA also maintains an excellent understanding of Organization Laws and is a specialist in numerous disciplines; so, CA is given priority over CS when the company makes a job selection.
Why should you choose CS over CA?
The following are the reasons why you should choose CS over CA:
- Easy Studies – CS is far simpler than CA, which has been deemed to as the most difficult degree in India. The CA course is simple to begin but difficult to complete. While the CS is not simple, it is not as difficult as the CA.
- Secretarial Auditing – Secretaries are the only people who may sign a company’s secretarial report. There is no one else who can handle the company’s legal matters better than a Company Secretary
- Legal Compliance – CS is responsible for the company’s corporate governance. Company Secretaries are held accountable for operating the company in accordance with Company Law.
- No Work Pressure – Because of their Article ship, students seeking CA must manage a significant workload while finishing their CA Final courses. CS students, on the other hand, can finish their internship after completing their CS courses.
Which one to choose CA or CS?
We may conclude from the preceding observation that CA offers many more potential than CS, however obtaining CA is not as straightforward as pursuing the Company Secretary course. As a result, if you work hard and become a CA, you can reach your desired success. However, CS is a better alternative if you are terrified of hard labour.
Endnote
Tax planning, capital budgeting, budget forecasting, finance, and bookkeeping are just a few of the services provided by chartered accountants. The function of Chartered Accountants has expanded in prominence after the advent of GST. As a consequence, CAs’ functions and skills were fully utilized in the creation and implementation of GST. A Company Secretary, on the other hand, is a critical component of the company, ensuring the organization complies with all legal obligations. Despite having a high standing equivalent to that of a corporate director, a Company Secretary is a member of the workforce.
Both CA and CS serve as economic cornerstones, assisting the government in different financial and economic activities to rebuild the ailing Indian economy and boost economic growth.
