Role of a Chartered Accountant in Nation Building

Role of a Chartered Accountant in Nation Building

Chartered Accountancy not only deal with debit-credit of the accounts but they play a very important role at a big level in nation-building. CAs are foundation base of the economy and utilizing the financial expertise, the nation gets right direction in various financial and economy related measures to enhance the decaying Indian economy and enhance the economy along with industrial growth.

Chartered Accountant contributes in fields of Tax planning, capital budgeting, budget forecasting, financing or any other activity, preparation of books of accounts, and in every field as well. In the current scenario, after GST implementation, the role of Chartered Accountants has become very important. From the drafting rules to provisions to implementation of GST, the role and expertise of CAs were utilized to the fullest.

Some of the practical roles which are played by the Chartered Accountant is here:

1. Accountability

2. Social Accounting

3. Taxation

4. Capital Formation

5. Economic Planning

Chartered Accountant is helpful in building a nation and here are some roles they play in the economy and finance-related concerns in a nation:

It was well said by Dr. APJ Abdul Kalam that Chartered Accountants are partners in the nation building.

A Rational person can see the participation of Chartered Accountants in every field. Whether it is related to budget forecasting, Tax planning, preparation of books of accounts, capital budgeting, financing or any other activity, need of Chartered Accountants are in every field.

Their expertise knowledge is required in every area. As we know that trending topic of current scenario is implementation of GST and Chartered Accountants are playing a vital role in its implementation. Starting from drafting rules and provisions for GST act till the implementation of GST, knowledge of Chartered Accountants is a pre-requisite.

Chartered Accountants play eminent role in various fields. The knowledgeable advises of Chartered Accountants are pre requisite in formation of any law relating to commerce, taxation or legal fields. While forming a law or any act Chartered Accountants are one of the most important committee members. They have comprehensive knowledge of various important aspects which is important in formation of any law.

Chartered Accountants role in taxation field is commendable. They are the masters of taxation. Due to their discernment, they help in tax planning. It is significant to understand the difference between tax evasion and tax planning. Tax evasion is illegal and it attracts penal consequences. On the other hand, tax planning is legal which is beneficial to a common man and to our nation both. Tax planning is the analysis of a financial situation or plan from a tax perspective. For growth of country, it is important for a nation that its commercial sector grows. Chartered Accountants provide requisite knowledge to business entities which helps in smooth functioning of business.

A famous business entrepreneur Ratan Tata has made a statement that “I need MBAs for running my business but Chartered Accountants to teach them how to run the business.” Chartered Accountant’s guidance helps in efficient running of business. They deals with company law matters, matters relating to taxation, helps in preparing and maintaining books of accounts and other documents as per applicable financial reporting framework.

In era of globalization, business entities and even government of our nation tries to join hands with foreign companies. When any business entity starts functioning on global level, many matters take place like complying with laws of Foreign Exchange Management Act or complying with rules and regulations of governments of every country where business is operating. Conducting business on international level also involves inflows and outflow of foreign currencies. A Chartered Accountant helps a business entity to deal with all these matters. A Chartered Accountant has expertise in these laws and he/she guides a business in all these matters.

They also helps in regulating the foreign currencies by entering swap contracts forward contracts, future contracts etc. which in turn helps to regulate foreign exchange inflow and outflow in the country. A nation’s growth is in direct proportion with growth of its citizens. Investment opportunities are gaining their charm day by day. A rational investor wants to invest in those stock portfolios which have chances of giving maximum return. A businesses as well as investors have to comply with laws relating to investment field like rules and regulations of SEBI Act, 1992 and SCRA Act. Government frames various laws and rules in this regard to protect the interest of investors and to maintain the economical growth of nation. Chartered Accountant plays an incredible role in this field also. They provide required knowledge to investors as well as companies. They even have a role in framing policies regarding laws of investment. We all know that e-commerce sector is also growing at an increasing rate. Google tax Equalization Levy, Various provisions of TDS, TCS attracts the e-commerce industry. A Chartered Accountant helps this sector by providing sufficient guidance and by handling their taxation matters.

Next important area in which Chartered Accountants role is important in nation building is preventing Corruption, malfunctioning, window dressing, detecting frauds in companies etc. A nation will grow only after the end of corruption. Chartered Accountants helps to minimize the corruption by following rules and regulations and by creating awareness in people about wrong practices and its penal consequences. In a company, auditor (Chartered Accountants) is required to express his opinion on true and fair view of financial statements. An auditor tries to search about wrong practices done by management or staff and it is his duty to express his opinion on it. As per orders of Comptroller and Auditor General (CAG) of India, Chartered Accountant also express his opinion on financial statements of a government company. Auditor’s opinion increases the trust of investors as well as it helps in restricting any malfunction.

A Chartered Accountant is an important pillar in economic growth of nation. The View of Chartered Accountant to solve the financial problem is different from others due to their knowledge and expertise in field of finance taxation, stock market, and company law matters, FOREX, etc. It helps even common man or residents of country in understanding the rules and regulations.

So it is rightly said that Chartered Accountants are partners in nation building.