Presented By Presented By Presented By Presented By

CA CA CA CA P.K.DHAWANP.K.DHAWANP.K.DHAWANP.K.DHAWAN+91+91+91+91----9208222222920822222292082222229208222222

6/14/2014 1Lucknow Branch of CIRC of ICAI

6/14/2014 2Lucknow Branch of CIRC of ICAI

Leadership & IndependenceLeadership & Independence

FlexibilityFlexibility

Master of your own – Time & EffortsMaster of your own – Time & Efforts

No major Capital InvestmentNo major Capital Investment

Multifaceted knowledge of subjectsMultifaceted knowledge of subjects

Continuous knowledge updationContinuous knowledge updation

Networking and Personality

Development

Networking and Personality

Development

Future growth is generally certainFuture growth is generally certain

6/14/2014 3Lucknow Branch of CIRC of ICAI

� Class IClass IClass IClass I Family VentureFamily VentureFamily VentureFamily Venture

No need to worryNo need to worryNo need to worryNo need to worry

� Class IIClass IIClass IIClass II Ones, from financially sound Ones, from financially sound Ones, from financially sound Ones, from financially sound � Class IIClass IIClass IIClass II Ones, from financially sound Ones, from financially sound Ones, from financially sound Ones, from financially sound families / can afford heavy families / can afford heavy families / can afford heavy families / can afford heavy investments / long gestation investments / long gestation investments / long gestation investments / long gestation periods. periods. periods. periods.

No need to worryNo need to worryNo need to worryNo need to worry

6/14/2014 4Lucknow Branch of CIRC of ICAI

� Class IIIClass IIIClass IIIClass III

� LastLastLastLast butbutbutbut thethethethe majoritymajoritymajoritymajority ofofofof youyouyouyou maymaymaymay bebebebe belongingbelongingbelongingbelonging totototothisthisthisthis class,class,class,class,

� EntryEntryEntryEntry intointointointo thethethethe PracticePracticePracticePractice forforforfor TINATINATINATINA factorfactorfactorfactor� EntryEntryEntryEntry intointointointo thethethethe PracticePracticePracticePractice forforforfor TINATINATINATINA factorfactorfactorfactor

� YouYouYouYou allallallall alsoalsoalsoalso NoNoNoNo needneedneedneed totototo worry,worry,worry,worry, asasasas youyouyouyou areareareare nothingnothingnothingnothingtotototo looselooselooseloose....

� MayMayMayMay bebebebe thisthisthisthis TINATINATINATINA factorfactorfactorfactor willwillwillwill compelcompelcompelcompel youyouyouyou totototo workworkworkworkhard,hard,hard,hard, workworkworkwork tirelesslytirelesslytirelesslytirelessly andandandand totototo waitwaitwaitwait longlonglonglong forforforfor fruitsfruitsfruitsfruits totototocomecomecomecome....

� FortunatelyFortunatelyFortunatelyFortunately IIII alsoalsoalsoalso belongbelongbelongbelong totototo thisthisthisthis classclassclassclass ofofofof youyouyouyou allallallall.

6/14/2014 5Lucknow Branch of CIRC of ICAI

� We always tend to misunderstand the role ofICAI.

� ICAI does not give us a guarantee to give jobsand even does not guarantee to provideprofessional opportunities.professional opportunities.

� It is the regulator of our profession, but at themaximum could be the facilitator. (Althoughsame can not even be termed as our right).

� ICAI is to provide opportunity of knowledgeupdation

6/14/2014 6Lucknow Branch of CIRC of ICAI

� YourYourYourYour successsuccesssuccesssuccess orororor failurefailurefailurefailure isisisis aaaa mixmixmixmixcombinationcombinationcombinationcombination ofofofof youryouryouryour variousvariousvariousvarious personalpersonalpersonalpersonaltraitstraitstraitstraits youyouyouyou carrycarrycarrycarry withwithwithwith youyouyouyou whichwhichwhichwhich maymaymaymaykeepkeepkeepkeep changingchangingchangingchanging asasasas youyouyouyou grow,grow,grow,grow, asasasas youyouyouyougaingaingaingain experienceexperienceexperienceexperience andandandand eveneveneveneven asasasas youyouyouyou facefacefacefacechallengeschallengeschallengeschallenges....

� NeedNeedNeedNeed totototo bebebebe humble,humble,humble,humble, coolcoolcoolcool headed,headed,headed,headed,TRAITS NeedNeedNeedNeed totototo bebebebe humble,humble,humble,humble, coolcoolcoolcool headed,headed,headed,headed,softsoftsoftsoft spokenspokenspokenspoken andandandand goodgoodgoodgood listenerlistenerlistenerlistener

� DiscriminationDiscriminationDiscriminationDiscrimination betweenbetweenbetweenbetween ACAACAACAACA andandandandFCA,FCA,FCA,FCA, aaaa futilefutilefutilefutile thoughtthoughtthoughtthought.... It’sIt’sIt’sIt’s aaaa justjustjustjustmattermattermattermatter ofofofof timetimetimetime....

� RequirementsRequirementsRequirementsRequirements ofofofof auditeeauditeeauditeeauditee totototo choosechoosechoosechoose aaaaparticularparticularparticularparticular classclassclassclass ofofofof CACACACA cancancancan notnotnotnot ////shouldshouldshouldshould notnotnotnot bebebebe challengedchallengedchallengedchallenged butbutbutbut acceptacceptacceptaccept....

6/14/2014 7Lucknow Branch of CIRC of ICAI

� HowHowHowHow manymanymanymany ofofofof you,you,you,you, inininin practice,practice,practice,practice, ifififif offeredofferedofferedoffered goodgoodgoodgoodjob,job,job,job, howhowhowhow manymanymanymany ofofofof youyouyouyou willwillwillwill optoptoptopt forforforfor jobjobjobjob....

� GestationGestationGestationGestation periodperiodperiodperiod isisisis essentialessentialessentialessential andandandand cancancancan notnotnotnot bebebebe� GestationGestationGestationGestation periodperiodperiodperiod isisisis essentialessentialessentialessential andandandand cancancancan notnotnotnot bebebebeavoidedavoidedavoidedavoided....

� JustJustJustJust keepkeepkeepkeep inininin youryouryouryour mindmindmindmind thatthatthatthat theretheretherethere isisisis nononono exitexitexitexit doordoordoordoor....

� IIII amamamam suresuresuresure youyouyouyou allallallall wouldwouldwouldwould bebebebe aaaa successfulsuccessfulsuccessfulsuccessful practitionerpractitionerpractitionerpractitionerinininin CACACACA ProfessionProfessionProfessionProfession

6/14/2014 8Lucknow Branch of CIRC of ICAI

6/14/2014 9Lucknow Branch of CIRC of ICAI

� NONONONO

� how big your office is,

� how much staff do you have,

� whether you visit your client in two wheelers.

� YESYESYESYESYESYESYESYES

� how efficiently you render the desired service toyour clients,

� how your service is able to relieve your client fromkey problems relating to accounts and finance,

� how with your services, client has becomedependent on you and your expert advise andguidance.

6/14/2014 10Lucknow Branch of CIRC of ICAI

Traditional� Accounting

� Auditing

� Financial Management

� Financing� Financing

� Company Law matter

� Direct and Indirect Taxation

� eSupports eTDS, MCA,VAT, Service Tax etc

� Insurance & Investment Planning

� Surveyors and Loss Assessors

6/14/2014 11Lucknow Branch of CIRC of ICAI

EmergingEmergingEmergingEmerging� Service Tax and GST

� IFRS

� International Taxation

� Forensic Accounting & Auditing� Forensic Accounting & Auditing

� Valuations

� Systems Implementation & Consultancies

� Business Process Outsourcing

� Merger & Networking

You can opt to specialize in any of emerging fieldYou can opt to specialize in any of emerging fieldYou can opt to specialize in any of emerging fieldYou can opt to specialize in any of emerging field

6/14/2014 12Lucknow Branch of CIRC of ICAI

� Break Even Time / Gestation Period

� Temperament for success

� Code of Conduct

� Innovate and Evolve

Time Management� Time Management

� Create value of your time and knowledge

� Establishing Contacts and getting clients

� You should be easily accessible, not yourknowledge

� Avoid giving instant solutions

6/14/2014 13Lucknow Branch of CIRC of ICAI

� Competitive environment

� Increasing Costs

� Client’s loyalty not assured

� Overcrowded Traditional areas of practice

Lack of billing skills� Lack of billing skills

� Vicious circle of charging lower fees

� Simplification of Laws reduces opportunities

� Regulatory Pressures (Peer Review /Disciplinary Mechanism)

Its Its Its Its uptouptouptoupto you to convert challenges to you to convert challenges to you to convert challenges to you to convert challenges to opportunitiesopportunitiesopportunitiesopportunities

6/14/2014 14Lucknow Branch of CIRC of ICAI

� Fast changing laws & compliances

� Technological developments

� Skilled Manpower and its retention

� Lack of Proper Time Management

Expectation Gap� Expectation Gap

� Constant technical upgradation

� Constant knowledge upgradation

Challenges are what make life interestingChallenges are what make life interestingChallenges are what make life interestingChallenges are what make life interesting

Overcoming them is what makes life meaningfulOvercoming them is what makes life meaningfulOvercoming them is what makes life meaningfulOvercoming them is what makes life meaningful

6/14/2014 15Lucknow Branch of CIRC of ICAI

Gradual Shifting Gradual Shifting Gradual Shifting Gradual Shifting

FromFromFromFrom ToToToTo

ComplianceComplianceComplianceCompliance ConsultingConsultingConsultingConsulting

VolumeVolumeVolumeVolume ValueValueValueValue

Protection Protection Protection Protection CreationCreationCreationCreation

Service ProviderService ProviderService ProviderService Provider Solution ProviderSolution ProviderSolution ProviderSolution Provider

6/14/2014 16Lucknow Branch of CIRC of ICAI

. Human CapitalHuman Capital

Existing ClientsExisting Clients

Client’s SatisfactionClient’s Satisfaction

Own Investment & Fund Management

abilities

Own Investment & Fund Management

abilitiesabilitiesabilities

Knowledge & SkillsKnowledge & Skills

Professional NetworksProfessional Networks

Health and HappinessHealth and Happiness

6/14/2014 17Lucknow Branch of CIRC of ICAI

. � Image & Brand Building – Must tag yourself

� Small beginning – A base for Big Future

You can gradually and eventually grow from� You can gradually and eventually grow fromsmall to medium and then big!!!

� Gradually move from All and Sundry toSpecialization

6/14/2014 18Lucknow Branch of CIRC of ICAI

� Initially, one may have toprovide all services for gettingnew clients…, howeverspecialization is the need ofthe hour!!!

Select your area of expertise� Select your area of expertiseand provide specializedservices pertaining to that area

� Even small firms in the marketproviding core businessservices to a large number abigger firms

6/14/2014 19Lucknow Branch of CIRC of ICAI

� “Put-service-first” is an attitude which createswealth. Put service first and money takes careof itself.

� Money-first attitude cannot help you to grow.

� First plant the seeds that grow the money, i.e.� First plant the seeds that grow the money, i.e.Service

� You don’t get an increase in fees on thepromiseof better performance, you get it onlyby demonstrating better performance.

6/14/2014 20Lucknow Branch of CIRC of ICAI

. � Lesser charging fees – never a solution

� Specialized Skills of the CA

� Nature and Type of Job / Clients

� Seniority in the Profession

Overheads of CAs� Overheads of CAs

� Expected Remuneration

� Quality & Service Levels

� Peak season / non peak season

� Must have Cost Sheet

6/14/2014 21Lucknow Branch of CIRC of ICAI

. Networking with like mindedprofessionals for rendering differenttypes of services to prospective clients.

Discuss serious issues with peers andseniors to get different angles of theseniors to get different angles of thesame problem

� Remove the perception of being a “Necessary evil”in audit and taxation in the minds of the client.

� One needs to add value to clients on an ongoingbasis and document value added to client.

6/14/2014 22Lucknow Branch of CIRC of ICAI

. � Job assignment should be clear to the CA and the

client by documenting it in the quotation /engagement letter to avoid unpleasant expectationgaps

� Do Proper Client Appraisal- whether he has theability & willingness to pay proper/ reasonable feesability & willingness to pay proper/ reasonable fees

� Quote fees for work only after proper analysis ofwork, time & man power required

� Increase delegation of work as practice startsgrowing

� Plug Revenue Leakages (Certification, Oral advisoryon phone / meeting etc.,)

6/14/2014 23Lucknow Branch of CIRC of ICAI

. � Improve office area – good furnishing, good work

ambience� Office timing, system of appointment, record of

time at each assignment, time for introspection,time for physical fitness, time for family.

� People – Train people including Articles (clients areobservant)

� People – Train people including Articles (clients areobservant)

� Technology – use technology effectively improvingquality, productivity, management, knowledge,research, tracking work etc

� Rendering Personalized Service with a more broaderexposure covering Audit, Income Tax , Service Tax,VAT etc)

6/14/2014 24Lucknow Branch of CIRC of ICAI

� To start with, every assignment is important but asyou grow, it also becomes important to identifyclients which have the potential to add value toyour practice

� Try to avoid Clients who knows the price ofeverything and the value of nothing

Never Consider Low fees a criteria to gain client� Never Consider Low fees a criteria to gain clientand even the client who has decided to leave you,must say good bye with all humbleness

ABC Analysis of Your Clients and Assignments with ABC Analysis of Your Clients and Assignments with ABC Analysis of Your Clients and Assignments with ABC Analysis of Your Clients and Assignments with correlation of time & feescorrelation of time & feescorrelation of time & feescorrelation of time & fees

6/14/2014 25Lucknow Branch of CIRC of ICAI

6/14/2014 26Lucknow Branch of CIRC of ICAI

CA P.K.DHAWAN+91-9208222222