Are You A “Future Ready” CA?

The word “Chartered Accountant” conjures up images of a hard working professional, surrounded by files, and working on complex accounting, tax, audit, and compliance matters. But is this lingering image of a CA from the past, an indicator of a CA’s current or future role.  There is no doubt that business expectations from a CA have evolved tremendously in a volatile, uncertain and complex world.  Have you given thought to what changed expectations businesses have from a CA?  Is it adequate for a CA to just be a “Chartered Accountant” or is the new definition of CA “Change Agent”?

Let us look at some trends that call on CA’s to play newer, innovative, challenging roles.  Some of these career spaces are growing quickly, there is not enough supply, candidate experience is not necessarily a differentiator; all of which mean that you have as good a chance as anyone else to ‘make it big’.

Cheaper internet bandwith costs, lower data storage costs, emerge as Software as a Service (SaaS), open source as a ‘free’ technology platform, and an explosion in mobile usage, has led to two major developments.  One, opportunities for CA’s in e-commerce as an industry domain (eg: career opportunities in Flipkart, Amazon, Redbus, etc).  Two, emergence of IT risk management as a key risk for a CA to manage (opportunities in specialist IT consulting firms or in Big4 which have dedicated IT risk management teams).  And three, role of CA in deploying cost effective IT solutions as a key business driver (careers with large FMCG companies that are integrating their vendors and distributors with their IT systems).  The good news is that in all these cases, it is the CA who is looked upon by the CEO as the key ‘driver’ to deploy IT and not necessarily a ‘coder’ or an IT professional.  The other good news is that younger CA’s are preferred by companies to play this role, given the high degree of comfort that younger CA’s seem to have with embracing new IT practices.

Within the Financial Planning and Analysis (FP&A) aspect of a CA’s role, data analytics is a great career avenue for young CA’s.  The days of measuring performance using a simple Profit & Loss a/c or Balance Sheet at the end of the year is long gone.  CEOs need real time information, weekly sales flashes, monthly financial statements, plant level profitability calculations, rolling foreCA’sts, sales cuts by geography, product, sales person etc.  This is an interesting “business” role for a CA to get involved with.  The focus is not on post mortem of performance, but a future looking, action oriented perspective on what the company needs to do to improve business metrics.  It’s a ‘meaty’ role!

Enterprise Risk Management is another exciting functional area for young CA’s to look at.  Earlier, risk management started and ended with physical risks and insurance.  Those days are gone.  Today, the focus is on ‘new age’ risks like foreign exchange movements, interest rate movements, political risks, risks from market adoption (particularly for start ups), risks around changing and volative business drivers, key man risks, reputation/ brand risk, IT risks etc.  Companies need help in identifying, measuring and monitoring these risks and CA’s are ideally placed to do this job. 

As technology advanced, companies moved to more automated systems. As a result, more choices for CA’s are available now. However, to be able to make a choice, a CA needs to be aware of how he/she wants the growth trajectory to be like. Other finance related courses and MBAs have also evolved at a dynamic speed in last few years. Hence, a CA needs to be more careful while carving a niche. CA’s need to re-invent from time to time as the business environment has become very speedy and complex.

An example of this evolution is Outsourcing where a complete system solution is handed over to a different entity. From consulting point of view also, there are lot of opportunities that a CA can undertake. Further, these can be funneled down to Industry verticals and functional areas. 

Some upcoming industry verticals such as insurance, mutual funds, e-commerce have come up in few years. For instance, London Stock Exchange, which did not exist until few years back. While audit and tax as functional areas have become crowded, new areas have emerged. Newly passed lot of CA’s will find it difficult to find a footing in areas which already have many CA’s; hence, they need to find new avenues.

Another kind of evolution is visible in the form of age-gap between new and young CA’s and the positions they gold. Earlier, a CFO would typically be of 50 years and above. People could become partners in a consulting firm only after a certain age. The barrier now has been broken. The new average year for these positions is 35 years.

New CA’s can also bring more rational on the table. A young CA will be in a batter situation to valuate an E-Commerce venture than an old-school CA. Many such evolving models have brought in huge opportunities for CA’S and the new breed of CA’s need to capitalize on this and become more versatile.

Few functions like business planning and procurement are gaining attention of CA’s these days. Companies have become increasingly wary of budgeting, business forecast, complex MIS etc. as they make way to the path of a CFO. These are certain specialties that are hugely required by startups.

Another area where CA’s can make a mark is technology.  While they may not understand technology that well, they do understand business models. They have the ability to bridge the business requirements with technology core products. Any successful implementation of a business ERP has a smart business mind behind it.

For further value addition and up gradation, pick courses that will take you to where opportunities will come up and not where opportunities are now fading out. Organizations which have a role change policy and offer special projects and rotational responsibilities are always a great place to learn at and value addition.  These factors become defining when taking your career ahead.

-Contributed by S Venkat, Founder Director, MYCFO

About the author: 

S Venkat is a qualified Chartered Accountant, Cost & Management Accountant and Risk Manager by qualification and an entrepreneur and category creator by vocation.  S Venkat is co-founder of MyCFO, India's largest and fastest growing service provider of CFO’ing and finance effectiveness solutions.  At MyCFO, S Venkat has built and led a team of 130 persons in 7 cities, been involved in CFO’ing mandates at over 200 clients and with over 35 funds.