If you think that the role of Chartered Accountants in India confines in calculating the credit and debit of any company, then you are wrong my friend. There are so many responsibilities that a CA has to execute and many of them directly related to the development of our country. They play a very important role to improve the economy of a country. Moreover, you can consider them as the foundation base that decides the direction of the growth.
The responsibilities of Chartered Accountants include capital budgeting, Tax planning, budget forecasting, preparation of books of accounts, financing and other activities. Apart from these, the role of the CA has become very important since the GST implementation. From rules drafting to the provision of implementation; all the steps were executed by the team of CA while forming GST.
Following the role of the Chartered Accountants in India in nation-building:
- Social Accounting
- Capital Formation
- Economic Planning
To know more about their responsibilities here are the details of the roles that are related to the economy and finance of the nation played by the Chartered Accountants in India.
-> Auditors’ Role: For any enterprise, an audit is much important to understand the reports and tax compliance. The CA conducts the audit for the company and contributes to tax revenues along with national development. It is the duty of the Chartered Accountant to ensure that the necessary taxes are deposited before the money sets off from the country.
Along with that, the correct tax payment must happen within the timeline set by the government. The CA performs all the government audits like Service Tax audit, CAG audits, forensic audit and Income Tax audit with utmost care.
-> Tax Revenue Contributor’s Role: The audits of entity and tax compliance are conducted by the Chartered Accountant to submit a report to the government. The CAs render the tax revenues of the government that directly reflects the development of the nation. They ensure that every entity must pay the correct tax to the government. They work as the first layer of vigil mechanism.
All the financial statements of the corporate house should be audited by the Chartered Accountants according to the applicable laws before presented in front of the general public.
-> SME Consultant Role: The CAs suggest SME in their legal matter and everyday operations. In this way, they help in the nation-building and GDP.
-> Business Consultant Role: The Chartered Accountant regulates the rules and regulation drafting of the Auditing and Accountancy of the ICAI which is the regulatory body of the Accounting Standards in India. The financial reporting of all the entities of the country is reported under the framework. In order to do so, they ensure the equability in reporting so that the people of the country know where the money is running.
It is the duty of the ICAI to advise the government regarding different aspects of taxation so that they can establish the strong taxation framework of the country. They also guide the government regarding corporate affairs so that they can make the right decision in nation-building.