www.insightssuccess.in October 2018
10
MOST ADMIRED
ACCOUNTING
& TAX CONSULTANTS IN 2018
Dhiren Shah Founder Member and Senior Partner
Nupur Shah
Karan Shah
Advocate
Partner & CA
Dhiren Shah & Co An Esteemed Firm Bestowing Stellar Performance
Editorial
A
significant change makes a world of difference and impacts the on-going momentum of an industry. The introduction of new laws and acts has brought some momentous alternations in the Accounts and Taxation industry. When such transformations are practiced and come into play, it influences its steps in the bigger picture. The GST is one such most hyped and talked about scenario, which has spread its word loud and clear. It is a source of major money spinner and has built its foundation for productivity gains. GST is a challenge which has also opened the door of opportunities for the tax and accounting professionals. Understanding the financial knowledge along with cloud, big data, analytics and business applications is the need of the hour. Realizing this, the professionals have meticulously worked to deliver utmost expertise and ensure a smooth transition to procure revenue and efficiency in the economy.
Boosting the Indian Economy for an Advanced Tomorrow
The 165 countries which have adopted GST in one or another form have still reintroduced the tax later with some salient modifications accordingly. As “one-size never fits all”, each country has different prevailing aspects in an economy so it has to adopt a suitable structure depending on political bargains and operational feasibility. GST is a major reform and no matter how prepared a country is before its introduction, it takes time to smoothen the rough edges and settle the unexpected issues. The introduction of GST is a noteworthy step in the field of internal tax reforms in India by merging a large number of Central and State taxes into a single tax, which is expected to significantly ease double taxation and make the overall process convenient for the industries. It has also made Indian products competitive in the domestic and international markets and holds a valuable promise in terms of sustaining growth for the Indian economy. Another such law which has generated a sudden storm in the nation is the Benami Property Act. As we know, the Real Estate sector is one of the major sources for generation and investment of “black money” in India. The notion behind this act is to eradicate black money transactions and ensure that all the real estate transactions are conducted in the name of the actual owner. This will improve the transparency and honesty and build a strong foundation in the real estate dealings. According to a survey, one-third of the country’s population of 1.25 billion resides in the cities and a huge number of people are migrating to cities. The government’s initiative “Housing for All” by the year 2022’ plan, works with an aim to create 20 million new urban houses and 30 million rural homes. And the Benami Property Act will help escalate this plan. The government has integrated such effective laws and acts to bring down the rolling ball of corruption and unfair trade practices. In addition, the accounting and taxation companies are working meticulously to fill in the diverse hitches and have put their best foot forward to adapt the new reforms for a brighter future.
e
Apurva Bhosal
Apurva Bhosale
Editor-in-Chief Pooja M. Bansal Senior Editor Shraddha Deshpande Managing Editor Rajarshi Chatterjee Executive Editor Apurva Bhosale Contributor Anmol Preet Singh Art & Design Director Amol Kamble Co-designer Poonam Mahajan Picture Editor Alex Noel Art Editor Mayur Koli Visualiser Asha Bange Business Development Manager Akansha Garewal Marketing Manager Dhruv Apte Business Development Executives Joan, Shraddha, Rutuja Research Analyst David Circulation Manager Vivek Bangade Database Management Prashant Chevale Technology Consultant Swapnil Patil sales@insightssuccess.com
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Cover Story 08
Dhiren Shah & Co An Esteemed Firm Bestowing Stellar Performance
Interview With Insights Success 26
16
B R Maheswari & Co. LLP
M. B. Nayak & CO.
An Esteemed Firm Offering Value-Added Services with a Holistic Approach
A Renowned Firm Offering Top-Notch Accounting Services
CONT ENTS
38
Leadership Thought
32 Professional Stance Applicability of GST on Housing Societies
CXO Standpoint
Internal Audit: The Paradigm Shift
Challenges and Opportunities Two sides of the Coin
Editor’s Pick Traits of Becoming a Chartered Accountant
36
42
Articles
Editor's Insights
20 J B Kadge and Co., Chartered Accountants Providing Expertise in wide variety of Internal and Management Audits, System Set ups and Allied Services
24 Jindal & Co. Blending Experience with Drive and Energy to Provide Quality Enhanced Services
THE
10
MOST ADMIRED
ACCOUNTING & TAX CONSULTANTS IN 2018
Accounting and Tax ConsultantsServing with Top-notch Services
T
he accounting and taxation industry has experienced a drastic change of events as new reforms are introduced every now and then. Incorporating these transformations and advising the clients expertly along the way are consultants, who guide them comprehensively to curb the stumbling blocks for a better project success. These consultants belong to leading accounting and taxation firms and work with a holistic business focused approach. We introduce some of the top-notch firms of the accounting and taxation industry and bring you “The 10 Most Admired Accounting & Tax Consultants in 2018”. This edition briefs about the firms that offer wide-ranging solutions with a principled work ethical approach and have also earned a position in the Accounting and Taxation fraternity. On the Cover Story of this Edition we have showcased Dhiren Shah & Co.: It is a solution oriented Indian Tax and Accounting firm having its existence since 1986 and is driven by the virtues of passion to learn, hard work, self-belief, innovation, perfection, and excellence. We have enlisted various other firms which are making a difference with their performance and creating a benchmark in the industry. Starting with, J B Kadge and Co.: J B Kadge and Co. is a Chartered Accountant firm which provides all sorts of Chartered Accountant services related to Internal and Management Audits, Systems Set ups, Accounting, Auditing & Assurance, etc. Jindal & Co.: It is a third generation firm with a distinguished team of chartered accountants, corporate financial advisors and tax consultants. B K Khare: A well-established leading and most prestigious firms in India in the Indian accounting and tax industry. Balakrishna Consulting LLP: It has over three decades experience in multidisciplinary chartered accountancy services. Dhruva Advisors: It offers a wide range of services in the tax and regulatory space to clients in India and around the world. Kamlesh Rathod & Associates: A Service Provider of audit and assurance services, advisory services, and business process outsourcing. P K Barman & Co.: It is a firm of chartered accountants over decade providing Financial Services across India and rest of the Globe. Taxpert Professionals: A firm providing concentrated services in accountancy, taxation, legal and corporate laws. Vipin Shalini & Co.: A highly acclaimed firm led by skilled and experienced Indian chartered accountants having industry experience of over a decade. Additionally, the edition consists of exclusive Interviews of B R Maheswari, Founding Partner of B. R. Maheswari & Co. LLP and Mayur B. Nayak, Founder of M. B. Nayak & Co. and CXO’s stated by foremost leaders conveying their insights on the industry. Also our expert editor narrates creative piece of write-ups entitled as “Challenges and Opportunities- Two sides of the Coin” and “Traits of Becoming a Chartered Accountant”. So, flip the pages and brush-up your accounting and taxation knowledge.
Dhiren Shah Nupur Shah Advocate
Founder Member and Senior Partner
Karan Shah Partner & CA
COVER STORY
Dhiren Shah & Co An Esteemed Firm Bestowing Stellar Performance
W
ith the introduction of new reforms, the tax and accounting profession has seen commendable alterations in Tax Laws as well as Accounting Standards. Firms constantly work to keep up with the changing times and provide the best of services to clients. One such firm driven by the virtues of: passion to learn, hard work, self-belief, innovation, perfection, and excellence is Dhiren Shah & Co. It is a solution oriented Indian Tax and Accounting firm founded by Dhiren Shah, CA, as a proprietary firm in the year 1986. It was converted into a partnership firm when his highly qualified son Karan Shah, CA, joined him in the year 2011 to make it - a father-son duo. Joining them further along the way was Nupur Shah-Advocate, daughter of Dhiren Shah, with a team of 6 Advocates aim to expand the firm’s horizon of having full-fledged legal division. The firm has a dedicated team of fifteen chartered accountants, two company secretaries and more than sixty other teammates. The Leading Force The founder and Senior Partner, Dhiren Shah, is a diligent and ambitious personality. In his younger days, Dhiren Shah was always fond of sports and entertainment and was a mediocre student. Never in his dreams did he think that he would be taking up a challenging and complex profession of chartered accountancy. But, after pursuing a degree in commerce, he joined a chartered accountant course and in the succeeding years he became a chartered accountant. Though in the beginning, he joined his family business but decided to quit it together with the comforts of the fortune to be inherited as he wanted to discover new paths to excellence. Henceforth,
THE
10
MOST ADMIRED
ACCOUNTING & TAX CONSULTANTS IN 2018
“There is always a
place at the top that one has to dream of, and not give up
against all odds and difficulties coming in the path; as it is
only the odds that
make you reach new levels of success” he entered the chartered accountant profession in the year 1986 influenced by the mantra of “Be on your own” without seeking any family support and without penny in his pocket or work exposure with any chartered accountant firm or tax consultancy firm. Being an ardent believer of selflearning, Dhiren Shah drew inspiration from philosophical genesis of Arjuna, Dronacharya and Karna to resolve his challenges in the initial days of his career. He started his practice believing in his
ideology of the 3D’s which are determination, devotion and discipline along with hard work to achieve his aims. Dhiren Shah & Company made its humble beginning with a small office and a small team but within a span of less than ten years Dhiren Shah built an office of 7000 sq. ft. in the heart of the City of Ahmedabad and in 2015 December a three storied office space to his credit measuring 18000 sq. feet. With the latest infrastructure and updated technology, he also
incorporated one of the best libraries of its kind in his office. Dhiren Shah always values inputs given by his senior associates. The contribution of Bhavesh Shah, CA, a senior associate of the firm is highly admired. He is an expert in the areas of audit and taxation and has a rich experience of the same. P.P. Rawat, an advocate and another stalwart, has a wealth of experience in the field of corporate laws. His skilled legal advice is truly appreciated by the firm. The co-operation of the valued senior team
is thus of paramount importance in the success of the firm. An Excellent Service Provider The firm located in Ahmedabad, Gujarat, has associations in Vadodara, Rajkot and Anand, as well as PAN India with other associated firms at Delhi, Jaipur, Mumbai and Pune. Instead of practicing traditional methodology of auditing and taxation, the firm provides strategic, tax and legal specialized services to diverse sectors. The firm offers tax planning and advisory services, international taxation resolving multiple issues associated with it including but not limited to cross border transactions and transfer pricing, Inbound and outbound Investment Advisory, Foreign Direct Investment Policy, FEMA & RBI Guidelines, M&A advisory, Business Restructuring, Business Valuation, Statutory Audit, Management Audit, Internal Audit, Forensic Audit, Ind-AS Implementation, Succession Planning and Private Trust creation. The firm has also spread its wings in the field of litigation under direct tax laws, delivering litigation services for tax affairs before the CIT (Appeals), ITAT and Settlement Commission, High Court and Supreme Court and company law issues before NCLT High courts and the Supreme Court. The firm has been rendering professional services to its clients for indirect tax matters right from the beginning and continues with the introduction of Goods & Service Tax (GST) in India. From July 2017, Karan is actively involved with the GST ranging from advisory to attending the litigations before the concerned authorities. In the field of real estate matters, the firm provides consultancy in land revenue laws, Transfer of Property Act, The Prohibition of Benami Property Transaction Act and also in The Real Estate (Regulation and Development) Act, structuring of real estate projects and drafting of commercial documents for the real estate projects including joint venture and development agreements. The firm also caters to in the field of Prevention of Money Laundering Act, Arbitration matters as well as matters under the enforcement directorate. In the field of company law, the firm provides services from the stage of incorporation to liquidation as well as legal due diligence of the company and LLP. The firm specializes in Mergers and Acquisitions, Demerger, Takeover, Public Issue of shares (IPO) and also appears before the National Company Law Tribunal (NCLT) for the matters of company law and Insolvency Bankruptcy Code and litigation before the High Courts and Supreme Court through a team of advocates having profound knowledge and competence of the subject. Earning Prestigious Honors Dhiren Shah’s sheer contribution and principled work ethics has earned him the highest appreciation from the upper echelons of the Indian tax law practitioners. He has written papers and articles for various seminars and conferences held by the chartered accountants association of India. He has also been invited as a speaker to deliver a lecture on “Do’s & Don’ts for the Income Tax Settlement Commission Practice: Skill Development for the
“If you work hard and honestly with the key objective of securing the best results for your clients, success will not elude you. There are no short cuts to success”
Chartered Accountant Association Fraternity” in a seminar. He has shared his insights during his various talks on search and survey matters for direct tax and indirect tax for the different professional forums. He believes that awards and felicitation cannot be counted as benchmarks to measure professional success. Dhiren Shah firmly trusts that the true benchmark of professional success is achieving excellence in the practice and earning recognition from the clients, business communities and the professional fraternity. The professional gratification that has flown from this recognition has helped him establish a successful career of more than three decades. The firm feels honored and takes pride in having achieved proficiency across diverse service lines which includes banking and finance, capital markets, corporate and commercial dispute resolutions, FDI, investments funds, mergers and acquisitions, private clients, real estate, restructuring and insolvency and tax. “Our commitment to our clients and work, attention to details, transparent approach and formidable expertise in various areas of taxation, accounting and auditing has not only won us recognition but also earned respect in the sector we serve” adds Dhiren Shah. Tackling Hurdles Effectively Initially, as Dhiren Shah had no professional experience in any chartered accountancy firm, he had to deal with the competition of the Indian as well as international players. Toiling for 14 to 16 long hours a day he shaped his career and established his firm as one of the top reputed firms. Over the years, he has successfully steered through stiff competition from top players of accountancy and tax firms. In the year 2000, as multinational firms
To be a successful
Chartered Accountant an irreplaceable
quality that one
should have passion to be strengthened with constant reading, researching and
regularly updating
oneself with newer reforms. When a
client knows that his
Chartered Accountant's professional integrity and ethics are
unassailable he
rewards you with his confidence and trust. And, where there is satisfaction of
professional services,
there is no dearth of good work
started showing up in India, he adopted a principle of customizing his services to the clients in a personalized manner. He applied the technique of giving personal attention to solve problems of the clients in different sectors by offering a one-stop solution to the clients. Right from the beginning of his career, Dhiren Shah was always passionate to resolve the most complicated and complex cases under the Direct Tax laws. When he became aware of the fact that the Income Tax Settlement Commission was a forum where the most complex and high value challenging transaction matters were settled, this interested him the most and he started his practice at the Settlement Commission in the year 1994 and ventured to be the first Chartered Accountant ever from the State of Gujarat to appear before the Hon’ble Settlement Commission. Keeping Pace with Existing Times Dhiren Shah and the professionals at the firm believe in gearing themselves up by developing their deep understanding of the potential taxes and the consequent accounting and legal aspects, new reforms of the emerging global economy and their implications for clients so that before they face any issue the firm is ready with deep reading of the law / provisions and expertise to deliver the first mover advantage. The firm believes in updating their knowledge in GST and International Taxation, Transfer Pricing, Cross Border Transaction, GAAR, Double Taxation Treaties and Ind-AS Implementation entered by India. The Key Mantra Dhiren Shah & Co. believes that values and ideals are more important than
field of audit and taxation and didn’t restrict his area of practice to the traditional methods. Moving ahead, siblings Karan and Nupur Shah are furthering their father’s legacy by setting up the infrastructure of legal division with a talent pool of professionals under the able guidance of Dhiren Shah, Bhavesh Shah and PP Rawat. With the new reforms and changing laws the firm- a remarkable future awaits in the areas of accountancy, taxation and other laws of the country. The firm provides top-notch services to the clients with utmost transparency, breadth of experience, in-depth knowledge of the subject and qualitative performance maintaining professional integrity and dignity.
success. The firm’s main strength has been its dedicated attitude, innovative style and always ahead of time approach, which creates comfort and confidence amongst their clients. “Discipline, Trust, Transparency, hard work and perfection are five pillars of profession. These traits with ethical work standards are of utmost importance as only intellectual ability will not serve in the long run and so if you honestly work with the key objective of securing the best results for your clients, success will not elude you”, says Dhiren Shah. This has been a key mantra that has driven the firm for the past three decades. Fast-tracking with Time Since the very beginning, as Dhiren Shah didn’t have any experience in law but he still handled cases pertaining to various laws. With every step he explored the
The firm keeps up with the current happenings and is prepared to face challenges that the market and new law reforms may hurt. It knows that the chartered accountancy profession in India is evolving with worldwide firms aiming to become a reputed name. But, this never became a problem for the firm, due to their expertise in the profession and for providing a ‘one-stop solution’ for all the problems to the clients.
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THE
10
MOST ADMIRED
ACCOUNTING & TAX CONSULTANTS IN 2018
Company Name
Management
Brief
B K Khare bkkhareco.com
Chaitanya Vinay Joshi CA
A well-established leading and most prestigious firms in India in the Indian accounting and tax industry.
Balakrishna Consulting LLP bclindia.in
Pavan Sharma CA
It has over three decades experience in multidisciplinary chartered accountancy services.
Dhiren Shah & Co. dhirenshahandco.com
Dhiren Shah Founder Member and Senior Partner
Dhiren Shah & Co. is a solution oriented Indian tax and Accounting firm having its existence since 1986.
Dhruva Advisors dhruvaadvisors.com
Dinesh Kanabar CA
It offers a wide range of services in the tax and regulatory space to clients in India and around the world.
J B Kadge and Co. jbkadgeandco.com
Jayant Kadge Founder
J B Kadge and Co. is a Chartered Accountant firm which provides all sorts of Chartered Accountant services related to Internal and Management Audits, Systems Set ups, Accounting, Auditing & Assurance, etc.
Jindal & Co. jindalandcompany.com
Akhil Jindal Managing Partner and CA
It is a third generation firm with a distinguished team of chartered accountants, corporate financial advisors and tax consultants.
Kamlesh Rathod & Associates krathod.com
Trupti Rathod CA
A Service Provider of audit and assurance services, advisory services, and business process outsourcing.
P K Barman & Co pkbarman.com
Pratap Kumar Barman CA
It is a firm of chartered accountants over decade providing Financial Services across India and rest of the Globe.
Taxpert Professionals taxpertpro.com
Vinay Bhushan CA
A firm providing concentrated services in accountancy, taxation, legal and corporate laws.
Vipin Shalini & Co vipinshaliniandco.com
Vipin Kumar Jain CA
A highly acclaimed firm led by skilled and experienced Indian chartered accountants having industry experience of over a decade.
M. B. Nayak & CO. A Renowned Firm Offering Top-Notch Accounting Services
T
he Accounting and Taxation sector has undergone a radical modification with the introduction of new acts and laws. With the client demand increasing overtime, the accounting and taxation firms are setting major goals to accomplish the client’s requirements with their core strengthens.
In an interview with Insights Success, Mayur B. Nayak, Founder of M. B. Nayak & Co. gave some insightful answers highlighting the influences made by his firm, service offerings, winning honors, tackling challenges, current and future perceptions. With over three decades of rich experience, Mayur B Nayak, is a prominent personality in the Accounting and Taxation fraternity. His principled work ethical approach and sheer contribution has successfully met the harbor of success. 1. Kindly brief us about the company. Established in August 1987, “M. B. Nayak & Co.” renders a range of services to its clients in three different verticals, each headed by competent professionals: i.
Consulting Practice Under this vertical the Firm renders consultancy services in
under the Companies Act, 2013 regarding Internal Financial Control System of a company. iii. Financial Services and Business Consultancy The firm is engaged in financial analysis for two leading banks in India for over 20 years. Other areas serviced by this vertical include “Project Financing and Venture Capital Funding”. The firm also undertakes consultancy in respect of business restructuring as well as turn around strategies. Mayur B. Nayak Founder
the field of International Taxation, Foreign Exchange Management Act (FEMA), Cross Border Structuring/Investments and Transfer Pricing, to Indian Companies, Multi National Enterprises (MNEs) and high net worth individuals. ii. Audit and Assurance Practice The firm provides services in respect of Statutory Audit under the Companies Act, Bombay Public Trust Act, etc., Transfer Pricing Audit, and Tax Audit. The firm also undertakes Internal Audit, Due Diligence Audit and implementation and/or documentation of the process and Risk Control Matrix as mandated 16
2. Please tell us about your Founder/CEO and his/her contribution towards the company and the industry. Mayur B. Nayak B.com, F.C.A., is the Founder of M. B. Nayak & Co. a firm of Chartered Accountants practicing for the past 30 years. Clearing B.Com.in First Class from Mumbai University, he is a Rank Holder in C.A. Final examination as well. He held the office of President of the Bombay Chartered Accountants’ Society (BCAS) for the year 2010-11. He was Chairman of the Human Resources Committee for four years. Presently, he is Chairman of the International Taxation OCTOBER 2018
Interview with Insights Success
Committee. He is trustee of the BCAS Foundation. He has authored a monograph on “Permanent Establishment” published by the Chamber of Tax Consultants (CTC), Mumbai. He has co-authored a book titled “Mauritius- International Business and Tax Strategies” published in 2002. He has co-authored a publication entitled “Tax and Treaty Guide” published by BCAS. Further, he is a co-author of the publication entitled “Comprehensive Handbook on Non-Resident Taxation & FEMA”. He contributes to the monthly column “FEMA Update” in the “Income Tax Review” published by CITC. He has jointly contributed to the branch report on “Source and Residence: New Configuration of their Principles” on behalf of India Branch, discussed at the 2005 Buenos Aires Congress of the International Fiscal Association and published in the CAHIER. He is regular speaker at the International Taxation Courses conducted by ICAI, Foundation for International Taxation and BCAS. He has presented papers, led group discussions and delivered talks at various professional fore including ICAI, chambers of commerce, as well as public sector banks and contributed articles to various professional journals and
OCTOBER 2018
newspapers in the arena of International Taxation, Domestic Taxation, Transfer Pricing, FERA and FEMA. He is an accredited trainer in “Spiritual Healing”; conducting regular courses on “Parashakti Chikitsa” with the blessings of Dr. Harish Joshi and Sri Sri Mahavatar Babaji. He represents Mumbai sub-chapter of the Indian Spiritual Healing Foundation, Rishikesh. He is a regular Runner participating in Half Marathon (21 kms.) every year at the Standard Chartered/Tata Mumbai Marathon event. He is Chairman of the MILT Charitable Trust, Mumbai which organized a successful national level convention, “Joyfest 2016”. He has served as a trainer at the Chinmaya Mission, conducting workshops on the module of “Emotional Transformation” for the benefit of fellow humans. 3. What intrigues you most about the account and taxation system? We are a partner in nation building in that we help government to raise resources and help tax payers in discharging their obligation through timely compliances. Accounts help a person to keep track of his earnings, plan his financial affairs and utilize his resources in the most efficient manner. There is a lot one can learn from accounting
17
in life: credits and debits remind us of good and bad karmas, profits and losses remind us of winning and losing in life and above all, the balance sheet should wake us up balancing between work and personal life. 4. Kindly mention the awards and accolades received by the CEO and the company? CA Mayur Nayak, the founder, is a co-author of “International Taxation” column in BCAS Journal for the over 20 years and was the recipient of the Best Feature Award in the year 19992000. On 16th July 2011 he was conferred the “Scholar of the Year” award by the Ness Wadia College of Commerce, Pune in recognition of his contribution to the profession of Chartered Accountants and in the field of International Taxation. He delivered 43rd Founding Day Talk at the Ness Wadia College on 16th July 2011 on the subject of “Good Governance and Accountability – A Perspective”. In 2015, he was featured in the Guinness Book of World Records, and was awarded the Certificate of Participation under the category: “The most people running up a single mountain” at the PNB MetLife Satara Hill Half Marathon on September 6, 2015. He has won national awards for writing essays in pscho-spiritual subjects at the MILT (McGrath
Institute of Leadership Training) National Conventions in 2016 and 2017. In the 2017 national convention of MILT, called Loveall’17, he won a national level completion for delivering a talk on Principles of Human Relations. 5. What are the major challenges the company has faced over the years in terms of growth, and evolving new players in the industry? The profession of Chartered Accountancy has passed through many challenges over the past three decades. It has evolved in terms of sophistication and service standards. The major challenges in the recent past are with respect to (i) rapid changes in various laws: introduction of Ind-AS (Indian Accounting Standards, New Companies Act in 2013, GST Act, FEMA and so on; (ii) digitization of tax compliances, E-assessments etc., and (iii) growing expectations of all stakeholders. Arrival of Multi-national accounting firms in India has increased competition, but has also helped improving service standards. The firm has developed capabilities and bandwidth to deal with challenges posed by the continuing economic scenario. 6. What are your views regarding the current reforms and acts and what measures are taken to incorporate it in the company? The firm has geared up to face the challenges posed by the fast changing Indian economy. The
proprietorship firm got upgraded to partnership with induction of two young partners, namely, CA Hardik Mehta and CA Sanket Narolkar. CA Hardik Mehta was encouraged to do CPA from USA to service US bound clients. CA Sanket is equipped with DISA (Diploma in Information System Audit) from ICAI to carry out audits in a computerized environment. With these changes, the firm is equipped with varied skills. 7. Kindly share with your Vision and Mission of your organization. Vision “To create a value based organization which generates value for all its stakeholders, namely, partners, clients, government, staff and society.” Mission “To render the quality services in the most efficient manner.” 8. What is your key mantra that has driven you for the past three decades? The passion to make a positive difference in our clients’ lives, which is not only ecologically sound but also sensitive to societal needs. 9. What are your future perspectives?
honestly and on time. The dividing line between tax avoidance and tax evasion is getting blurred. Any structure perfectly legal in form will not be accepted unless there is an underlying substance. Compliances are on a rise, which will put further pressure on the profession. Availability of skilled staff will continue to be a challenge. The accounting firms has need to invest more in staff training, especially in technical areas and soft skills up-gradation, infrastructure, and practise management software to remain competitive, relevant so as to increase the service standards eventually. For this, they will have to increase their fees substantially. The firms also need to factor in rising expectations from government, banks and financial institutions, clients and various other stakeholders. Appropriate safeguards will have to be built in to withstand risks which are part and parcel of any professional endeavor. We are committed to make Indian Multinationals valid and effective players on the world stage. 10. Please share a quote that best describes your company. We are big enough to specialize and small enough to personalize.
Services of accountancy, audit and taxation are becoming sophisticated. Structures based on tax avoidance will no longer hold good. Businesses need to reconcile to pay their taxes 18
OCTOBER 2018
J B Kadge and Co., Chartered Accountants: Providing Expertise in wide variety of Internal and Management Audits, System Set ups and Allied Services Introduction
L
arge or small, newly set up or established, businesses struggle with mainly two things, increasing Profits and mitigating Risks. This is where J B Kadge and Co, Chartered Accountants (JBKCo) come into the picture, who are experts in Internal and Management Audits and Systems Setups. JBKCo was founded in 2005 and is successfully running for over a decade now. The firm has earned a position in the field of Internal Audits, mainly in Software Development, Event Management, Manpower Supply, Hotel, Media, Manufacturing, Trading and Service industry. It has helped more than 120 businesses to know their B2S Business-Score® and improve it considerably with scientific Internal Audit Systems. A Resourceful Leader A diligent personality, CA Jayant Bharat Kadge is the Founder of J B Kadge and Co., Chartered Accountants having a rich experience of 14 years. Being a CA, he is a meticulous and system oriented person, who deliberately works closely with the owners and their managements. Guiding the paths of the business people and helping them to expand their business is CA Jayant’s passion. He has based his foundation on the
virtues of integrity and strives for constant value addition which has resulted in long-term relationships with clients. His determined-self has taken many path breaking initiatives to change the thinking of business owners on aspects like driving efficiency, employee motivation and role of software. He has also been instrumental in turnaround of average companies into profitable entities and makes them grow manifold. He has been an efficient partner in making many entrepreneurs dreams come true and at the same time advises them to put their businesses on auto pilot mode and live a stress free life. He has worked with reputed companies and also mentored startups to take off and has worked on Due diligences for mergers and acquisitions transactions. CA Jayant has successfully built a motivated, qualified, well trained team which is always keen to learn and ready to face any business challenges. Having a set of great academic records CA Jayant has served on Leadership team of BNI SOL which is part of a well known international networking organization and been on the panel of GST discussion in various colleges. An Excellent Service Provider JBKCo specializes in Internal and Management Audits where it helps many potential companies with their 20
Profitability and Risk Management using Proprietary software, Business Brain System. It helps companies to optimize its resources, define systems & processes, control systems and define KPIs for its important business functions and making their employees competent. A number of owners are technocrats, who are depended on the JBKCo’s service offerings on a large scale. Being well versed in management concepts like COSO, COBIT and BALANCED SCORE CARD, the firm provides holistic solutions in Systems Development and Risk Mitigation. A Comprehensive Vision “The budgetary allocation to Finance and Accounting department are lower and its power is under-utilized. Many a times, it’s the most neglected part of an organization, whereas it should be one of the most important departments. There is constant flux in consultants as people fail to get right consultants, who will deliver measurable results and give them higher return on investment. People don’t understand the importance of softwares, building teams and working with systems. We try to define where a business stands in terms of their business-score & risk-score and work with business owners to improve on these scores which also reflect on their financials.” explains CA Jayant, who is one of the OCTOBER 2018
THE
10
MOST ADMIRED
ACCOUNTING & TAX CONSULTANTS IN 2018
The company conducts workshops, trainings on these for their employees and also for the clients. Software should be used more extensively as doing the same work manually wastes the valuable time. The mindset of owners needs to be changed as roles and work profiles must be properly defined.” Tackling Challenges Effectively “Lower budget by clients towards Internal Audits is an issue and providing with convenient services is only possible if budget is increased. A number of times clients get impatient and are unable to understand that systems take time to build. But once that investment is done it is applicable for a longer time span. The right Management Information Systems are needed.” concludes CA Jayant. A Broader Image
CA Jayant Bharat Kadge, Founder
“In client’s success lays our Success”
Mapping the Road Ahead CA Jayant opines that“the SMEs can perform better and compete with big corporates if given proper guidance. The cash-flows can be handled efficiently and the interest cost can be saved. There lies a lot of scope for improvement if the most basic mistakes are avoided. The Firm wants to educate businesse owners in delegation of work and considers outsourcing to be a great solution. It believes in focusing on watching business dashboard and cashing on core strength.”
pioneers in the field of measurable results in Internal and Management Audits. The On-going Movement CA Jayant states that “Data Analytics, Business Intelligence, Machine Learning are trends in Internal Audit on which JBKCo is investing a lot of time and attention.
OCTOBER 2018
JBKCo aims to change the fortune of 400 companies in upcoming 5 years by helping them with Profitability and Risk. Talking about the vision and mission about the firm, CA Jayant adds, “We will have to train and mentor accounting and finance field. We have to make them believe that they can add a lot of value. Educate people in finance field and make them enablers in making businesses more profitable and less risky. Contribute to life quality of entrepreneurs. Power of Data analytics should be explained to clients and it should be taken benefit of.”
21
Jindal & Co.: Blending Experience with Drive and Energy to Provide Quality Enhanced Services
A
firm with a vision to be one of the top ten financial, technical advisors and service providers of the century through a process of constant change with special importance being laid on knowledge creation is Jindal & Co. It is a third generation firm with a distinguished and dedicated team of chartered accountants, corporate financial advisors and tax consultants. Running successfully for the past five decades, it has achieved accessibility, efficiency, and superior client service. The firm is highly appreciated for its professional ethos, technical expertise, perspicacity, and highly competent professionals. It provides efficacious solutions to its client’s requirements by having a thorough communication to maintain healthy long-term relationship. The team at Jindal & Co. is highly experienced and equipped with successful strategies and tools to provide best in-class services to its esteemed clients across industries. It has a proven track record in improving operational efficiency to its clients. The Resourceful Duo A diligent personality Dr. B. S Jindal, Founder, Mentor and CA, established the Jindal & Co. in 1965. He continues to be the member and has a sound knowledge of finance, companies, and tax laws and handles large number of audits and tax litigations cases in front of various appellate authorities. He has been continuously writing with various
newspaper under the column of money worries. Dr. Akhil Jindal, Managing Partner and CA, has excellent work experience in Internal Audit, Statutory Audit, Tax Audit and Stock Audit of various types of companies in sectors like manufacturing, hospitality, entertainment, real estate, trading, banks and many more. His areas of expertise include investigation audit, market valuation, forensic investigation, joint ventures, corporate tax restructuring, tax litigation and representation. He has been practicing for more than two decades and has completed Ph. D in Taxation of Corporates along with other degrees such as ICWAI and DISA. Akhil's articles have featured in various newspapers like Economic Times, Financial Express and many others. He has been actively involved in Statutory Audit of various banks, educational institutes and fortune five hundred companies, CSR trusts, and Airlines. He is a visiting faculty in various institutes like ICAI, IILM and Apex Institute of Management Studies. He is a member of prominent tax forums and active as speaker in various forays. An Excellent Service Provider Jindal & Co. provides expert solutions in the field of Auditing, Account Consolidation, Tax risk Identification, Compliance Assistance, Advise on tax laws and exchange control regulations, 24
company law matters, preparation and review of tax returns, withholding tax return, and advance tax. The firm offers distinctive features in various categories. In the field of audit services the firm designs to comply with all relevant legislation and legal requirements which is very beneficial to the business. In the field of Corporate Taxation & Compliance Services, the firm provides Tax Risk identification, Advice on Tax Laws, Preparation & Review of Tax Returns, Transfer Pricing and Indirect Taxation. Apart from this it also offers advisory services like Ÿ Issuance of securities in India Ÿ Investment advisory services in India in shares, securities, mutual funds and properties. Ÿ Opening and operating banking accounts and any specific schemes for Non Resident Indians. Ÿ Application to Foreign Investment Promotion Board (FIBP) Ÿ Application to Secretariat of Industrial Assistance ( SIA) Ÿ Preparation of Loan Application Form for Working Capital from Banks and financial institutions. Ÿ Preparation of Term Loan Application for funding from Banks and financial institution. Wining Prestigious Honors Akhil has received various awards and OCTOBER 2018
THE
10
MOST ADMIRED
ACCOUNTING & TAX CONSULTANTS IN 2018
accolades which include receiving the respected Delhi Ratan Award in 2010, Paul Harris Fellow by Rotary International and the Triveni Ganga Award for outstanding and noble services in the field of tax and accounting. He was also awarded the best upcoming faculty by institute of chartered accountants of India. Arising by Thrashing Hurdles The main challenge faced by the firm is to find the time to keep up with all the new rules and regulations. Investors and other stakeholders are constantly raising the bar when it comes to what they expect from their financial statements. The integrated reporting concept has finally been accepted as a welcomed step in the right direction in the attempts to solve the challenge of producing financial information in just the right quantity. The clients look up to the auditors to provide specific observations and recommendations that can add value. Clearly, the auditors have to look at the total landscape and drill down on the issues that are most relevant and important to a given organization in order to add the most value.
Dr. Akhil Jindal, Managing Partner and CA
“ We are what we repeatedly do; Excellence, hence, is not an art, but a Habit ”
OCTOBER 2018
Cherishing a Principled Work Ethical Environment Jindal & Co. aims to develop strong business relationships by taking genuine interest in the clients by striving to understand how the client defines success. The firm constantly works to provide superior services in an effective manner by maintaining highest standards of professional integrity. It fosters an enjoyable working environment, based on open communication and mutual respect to encourage initiative, innovation, teamwork, and loyalty. It also focuses to achieve profitable growth and long term financial success for today and future generations. Strengthening with Time In order to meet the audit demands of the future, the auditors must stay ahead of the curve on evolving technology and the changing regulatory environment and have a futuristic view to provide insights on future challenges and opportunities. As going ahead will definitely come with challenges but, it is mandatory to rectify and properly address these challenges. The audit profession will undoubtedly continue to change, and only those who evolve and innovate will succeed.
25
B R Maheswari
Founding Partner
26
OCTOBER 2018
Interview with Insights Success
T
he Accounting and Taxation firms work persistently on delivering the clients with utmost expertise regarding the tax laws and accounting standards. With introduction of new laws time and again, the firms have to be put their best foot forward to stand amongst all and make a name in the marketplace. Integrating effective measures, the firms have gained a fruitful momentum of client satisfaction, long-term relationships and project success.
BR MAHESWARI & CO. LLP
OCTOBER 2018
27
INTERVIEW WITH INSIGHTS SUCCESS
An Esteemed Firm Offering Value-Added Services with a Holistic Approach
In an interview with Insights Success, B R Maheswari, Founding Partner of B. R. Maheswari & Co. LLP gave some insightful answers highlighting the influences made by his firm, service offerings, winning honours, current and future perceptions. With over six decades of rich experience, B. R Maheshwari is an eminent personality in the CA fraternity. His dedicated-self has led the company to achieve many milestones along the way and made it a renowned firm. His sheer contribution and ethical work approach has handled numerous offices in his career profile. 1. Kindly brief us about the company. Established in 1964 by Mr B R Maheswari (Past President of the Institute of Chartered Accountants of India), B R Maheswari & Co LLP is now managed by 11 partners, and supported by a staff of over 50 persons across our offices at New Delhi, Gurgaon and Mumbai.
across industries like Steel, Textiles, Publications & Printing, and Entertainment etc. · Insolvency Resolution Services – a new practice domain under the recently introduced Insolvency Resolution Code 2016 with the objective of facilitating the financially stressed assets achieve a viable turn-around. Two of our partners are qualified Resolution Professionals under the Insolvency and Bankruptcy Board of India. · Business Advisory – We cover a wide range of services under our Business Advisory Services division like- Implementation of Ind AS / IFRS, Specialised compliance with foreign laws like Anti-Bribery, GDPR etc. and Forensic Advisory, IPO related work – assisting companies become IPO ready, Developing Business plans, India Entry strategy for multi nationals, Information systems audit, Business Process Solutions including, Design and Development of Accounting, Costing and MIS, Financial management and Outsourcing of Accounting, Corporate Secretarial services. We have advised clients across a wide range of industries including textiles, publishing, pharmaceuticals, manufacturing etc. · Tax and Related Services - We offer a full range of taxation advisory services including Representation in Assessment proceedings, Appellate proceedings etc, Advising on Innovative financing structures and instruments, Transfer pricing - policy formulation, risk management and audit defence, Compiling, filing tax returns and related advisory – both to corporates, as well as individuals, Other forms of trade and business taxes, e.g., value-added and turnover-based taxes, service tax, GST etc. · Risk Advisory Services to Financial Institutions - We are pioneers in the field of Bank process outsourcing, having teamed up with one of the largest private sector banks in India more than a decade ago to set up a system to enable early detection of NPAs. Our services include Credit monitoring, stock audits, pre sanction due diligence and ROC related matters.
2. Please tell us about your Founder/CEO and his/her contribution towards the company and the industry. Mr B R Maheswari (Founding Partner), 88, started his practice in 1954 with a different name. He set up BRMCo in 1964 and continues to mentor the Firm. With over 65 years of experience in the industry, he is regarded as an industry stalwart. He has held numerous offices in his illustrious career: · President of the Institute of Chartered Accountants in 1976-77 · Chairman of the Northern India Regional Council of the ICAI (1966-67) · Member of the Central Council member of the ICAI (1970 – 79) · Governing body member – Jawaharlal Nehru University (1978 – 81) · Has served on the Boards of numerous companies including New Bank of India (pre-nationalisation), Sudarshan Chemicals Ltd, JCT Mills Ltd, NBI Industrial and Finance Co Ltd, Jyoti Ltd etc. 3. Kindly brief us about your services and products? We are a full service professional services firm. Our main lines of business include: · Audit and Assurance Services – We have almost 5 decades of experience in providing Auditing and Assurance services to our clients. We conduct audits of all types, including Statutory Audits, Tax Audits, Internal Audits, and Concurrent Audits etc. We have also conducted special Investigation Audit for Banks, Financial Institutions and Regulatory Authorities like SEBI. We have deep experience in conducting Central Statutory Audits of some of the largest nationalised banks and public sector enterprises over the past few decades. Our private sector clientele includes some of the leading companies in their respective industries. We are empanelled with all major institutional and regulatory authorities like Comptroller and Auditor General of India, Reserve Bank of India, Securities and Exchange Board of India and National Commodity and Derivatives Exchange. · Corporate Finance Advisory – Our Corporate Finance division provides services like Debt Syndication, M&A Advisory, Valuations, Due Diligence, Equity raising etc. Our past deals range
4. What intrigues you most about the account and taxation system? India has one of the oldest accounting systems and one of the most complex and evolving taxation systems in the world. It is heartening to see the government doing a lot to simplify these and integrate them with world best practices so as to make India a better place to
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OCTOBER 2018
attract business and assist in economic growth. With the complete implementation of Ind AS / IFRS and GST, the Indian Industry will be truly part of the global economy.
the developed world. As a firm, we have a thriving Ind AS implementation business, and a GST team. We have also set up an Insolvency division with our Corporate Finance team to approach this business.
5. Kindly mention the awards and accolades received by the CEO and the company? Our ethos has always been to work with integrity and dedication. An accountant never covets or pursues awards or accolades. Our Founding partner has however been felicitated on numerous occasions by the ICAI and industry bodies for services to the profession. We have also been awarded the ‘Best Annual Report (2000-2001)’ award by ICAI as statutory auditors for Shree Cements Limited.
9. Kindly share with your Vision and Mission of your organization. Our vision is to become one of the largest and most respected Indian professional services firms that is capable of competing with the Big 4 in India. Our mission is to reach to that stage within 5 years.
6. What are the major challenges the company has faced over the years in terms of growth, and evolving new players in the industry?
10. What is your key mantra that has driven you for the past three decades? Integrity above all else – even if it comes at a cost.
The biggest challenge Indian accounting firms have faced in the last 20-30 years is the advent of foreign players (Big 4) into India. Coupled with the fact that our professional ethics do not allow us to advertise or solicit business, competing with the might of these MNCs is a huge challenge for midsize firms like us.
11. What are your future perspectives? Our business is interlinked to the evolution of the Indian economy at large. We are positive on the future of the Indian economy and hold great expectations from the government to continually improve the business environment and make India a preferred investment destination.
Having said that, we do see the larger and better run Indian firms re-emerging of late, specially into new areas of practice like Insolvency and Financial advisory.
12. Please share a quote that best describes your company.
7. Being one of the leaders in the accounts and taxation industry how do you integrate settlement commission advisory and service tax audit advisory in the company?
Delivering solutions reliably and with integrity.
Our taxation practice is focussed on Income Tax and GST Advisory, and we have created separate teams that specialise in these fields. 8. What are your views regarding the current reforms and acts and what measures are taken to incorporate it in the company? The 3 biggest reforms to impact our sector over the last couple of years have been GST, Ind AS adoption and Insolvency and Bankruptcy Code. All of these progressive reforms are designed to integrate India with
OCTOBER 2018
29
Applicability of
GST Housing
on
Societies
G
ST is applicable to the societies as the society is offering services to its members in respect of collection of common charges and payment to contractors/ different agencies. The service it was offering was earlier falling in the category of club or association service. As per GST act GST is applicable on supply of goods and services. The deďŹ nition of supply as per the act is given below:All forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. Society is already included in deďŹ nition of person and therefore falls within the ambit of GST. Now the question arises which are the types of charges levied which are taxable and which are not covered under GST and also which are the societies which will come in ambit of GST and which will be exempt. First condition to fall in ambit of GST is the aggregate turnover should be more than 20 lakhs in previous year. What would be included in
About the Author Anil Nagpal is the Founder of A. P. Nagpal and Company. Initially, he started his career by working with top-notch and reputed firms and gained a hands-on work experience. After his succeeding years at the firms, he decided to take a new step in his professional journey by setting up his own firm. In the past few years, including his period of employment with his vast experience he was involved in statutory audit of public sector banks, internal audit of banks of public sector and private banks. He has also handled various assignments including tax audit, statutory audit and taxation of various types of entities from proprietorship concerns to limited companies. 32
OCTOBER 2018
Professional Stance
aggregate turnover?
following:-
1. Taxable Sales 2. Exempt Sales 3. Export Sales 4. Interstate Sales 5. Sales by Agent of Principal (Amount of taxes not to be included). In case of society the taxable sales would include all contribution from members ie. Service charges, Water charges, NOC, Interest charged to members, property taxes etc. Exempt sales in case of co-operative society would include interest received from banks and fixed deposits.
1)
Now we come to the question- What would be the value for the purpose of aggregate turnover? It has been specifically provided that “transaction value is the price actually paid or payable for supply of goods and services.” Transaction value will include all taxes other than GST related taxes. Considering these property taxes will fall in the ambit of transaction value. However it has been specifically provided that expenditure or costs incurred by the supplier as a pure agent of the recipient of supply of services shall be excluded from the value of supply subject to certain conditions. Since property taxes comply with the conditions specified in relation to pure agent the Property taxes are to be excluded from value of supply. Thus it is not to be considered for the purpose of limit of 20 lakhs aggregate turnover. In addition in the FAQ of GST website they have specified that GST is not attracted on Water charges, Electricity charges and NA tax collection. To sum up the aggregate turnover includes the OCTOBER 2018
Maintenance charges by whatever name called i.e service chgs, water chgs, electricity chgs etc. 2) Sinking Fund 3) Repairs and Maintenance fund 4) Major Repairs fund. 5) NOC 6) Parking charges 7) Interest charged to members 8) Interest on Fd ’s ( though it is exempt supply on which GST is not be levied) 9) Rental income from towers, hall rentals etc. 10) Other miscellaneous collection from members 11) Transfer fees and share transfer premium 12) Any other sum levied by the society to its members by whatever name called. Also if the sum total of 1 to 12 exceeds 20 lakhs the first condition is satisfied and society will fall in the ambit of GST. However the co-operative societies take the benefit from one more notification which is applicable to all clubs, resident welfare association which is notification no 12/77 dated 28th June 2017. The entry no 77 of the said notification reads as under: “Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution – (a) as a trade union; (b) for the provision of carrying out any activity which is exempt from the levy of Goods and service Tax; or (c) up to 33
an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex.” This limit of Rs 5000/- per month is now enhanced to Rs 7500 per month w.e.f February 2018. The clause C which is specifically applicable to housing societies clearly states sourcing of goods and services from a third person for the common use of its members in housing society. If this is the activity / business carried on by the society than those members who are contributing less than Rs 7500/- per member per month will be out of GST. The first sentence of the said notification reads it should be service by a non profit entity. (Housing society satisfies this condition) to its own members by way of reimbursement of charges (say property taxes) or share of contribution (say all other maintenance charges). Considering this definition it will be very difficult for following to fall within the ambit of share of contribution for sourcing of goods or service from third person for the common use of its members: 1) 2) 3)
Share transfer premium Non occupancy charges Charges towards rental of any Ground or hall for events.
Thus above amounts are not to be included for counting the limit of Rs 7500/- per month per member. In other words if the first condition of 20 lacs aggregate turnover is satisfied but all the members are paying less than 7500
per month ( excluding municipal tax) than also on the above types of receipts the society will have to levy GST. Also the point to be noted is the benefit of this notification is only for residential societies. In other words in case of commercial societies; if the first condition of aggregate turnover is satisfied GST is applicable. The same would apply to shops in a residential society. Once the registration will come it will be required to start charging GST on applicable services @ 18 % in case of members and rental of property like tower income etc. It can in turn claim input set off of GST on the purchases and input services it will consume. The GST payable will be the net
amount after setting off. Also to claim input set off there are certain conditions to he complied with including the fact that the tax invoice cannot remain outstanding for more than 6 months. Periodic Compliances by Society in Respect of GST: 1)
The society will have to file the three monthly returns of GST: a) Return in respect of sales called GSTR-1 b) Return in respect of purchases called GSTR2-A ( which will auto populated but will need a reconciliation of input tax credit) c) GST return for net liability
34
payable i.e GSTR -3 which needs to be filed with liability for payment if any. In addition the society will have to file an annual return called GSTR-9 which needs to be filed by the end of 31st December of next yr. i.e for 2017-18 by 31st December 2018. The above monthly returns have to be filed between 10th and 20th of the following months. The societies do not have the option to go under composition scheme under GST as the composition levy option has not been provided to the service providers.
OCTOBER 2018
Challenges A
ccounting is a challenging profession and often demands a ton of work that is neverending. The way to define accounting is the language of business that talks about the variations of financial growth. To be more specific, accounting involves the process of recording, summarizing, analyzing the financial transactions of a business. This is complex in itself, but there are also other financial obstacles that accountants go through. Here are some of the accounting challenges accountants deal with and the ways to tackle them. Accounting Software The internet is flooded with a number of options of different software. Every day there is new software launched which is suddenly the talk of the town. Hence, it is confusing to select the right one from a bunch of emerging options. In order to tackle this challenge, the accountants must choose the software that is best suited for their company and covers the key features required. Also working with a CPA (Certified Public Accountant) firm will help identify the right solutions and get an appropriate setup, so as to use the software to its fullest potential. Staying on Top of the Cash Flow The biggest asset of a successful
&
Opportun ies Two sides of the Coin business is the cash flow. Managing cash flow is a big problem for startups and businesses. According to a survey, an enormous percent of businesses that fail are majorly because of the cash flow problems. To juggle between customers, vendors and to ensure on-time payment is a very important aspect. Hence, the right accounting professional is the need of the hour and comes very handy in unexpected situations. Professionals can helped by introducing a payment platform for consistent cash flow and also offer ideas for tracking unpaid accounts. The more money is invested in bank, the more it is less stressful and creates more opportunity for the growth. In order to stay at the top of the pyramid, it is essential to analyze the bills carefully and be thorough when pursuing payments from customers. Hiring the Right Professionals Running a successful business needs a team of potential members, who are committed to their work and contribute to make a difference. In the 36
competitive market, it is often difficult to find professionals who are capable for the job. The key is to find someone, who fully understands the industry and type of business. This professional will be able to address the specific business needs, offer tips and advice to improve the workflow and keep the business running smoothly. Keeping a Check on the Business One of the accounting challenges, accountants face is not being well aware of the real health of the business. Just having a well-defines cash flow system doesn’t summon up the entire financial scenario. It is mandatory to take out time to understand all of the components of the business and to figure out how it works together. Also it is necessary to perform regular reviews of the financials and take into account the key drivers which include growth, profitability, cash flow, assets and liabilities. In order to be consistently succeeding, OCTOBER 2018
Editor’s Insights
it is essential to know the Key Performance Indicators (KPI) and critical success factors for the business. As the business evolves and expands, the accounting needs will also increase.
and to be well aware and attentive for the long run. One of the ways to maintain the system is by jotting down the loopholes within the business and to hire a potential business advisor, who can recommend solutions.
dates, order, and days. With proper research, one can find the right software that best suits the business needs.
Creating Efficient Systems
Tracking the Expenses
To run a business is difficult and as one figures the system, either there is an introduction of new laws and acts or the business starts increasing. Hence, keeping track of current happenings is a must for every accountant. This is challenging as being updated is a meticulous process and often involves looking at the bottom with details. It is important to regularly review the present accounting and bookkeeping systems
Handling the receipts and recurring expenses can be a tedious process. But, maintaining records of expenses are very important for businesses to process and stay ahead in the competition. With such advance software, there is no longer a need to stock all the paper of receipts in a planner. There are many accounting software options available in the market to maintain the bills in a sequential order with proper details of
Accounting firms have to be active to effectively tackle the challenges and come up with solutions that are a quick fix. As the market is changing and growing every day, there will be a new set of challenges with each step. In order to achieve an eminent name in the industry, accountants have to put their best foot forward to make a difference in the upcoming times.
OCTOBER 2018
37
Keeping an Eye on the Future
Internal Audit: The Paradigm Shift Rahul Nahata Chartered Accountant
R
ANK Group is an established financial consulting group whose main areas of concern lie in advisory services and debt syndication. In the last five years, it has been successfully able to deliver innovative structured financial solutions. The company has fruitfully expanded over the years due to their immense knowledge, business acumen, keeping regular updates on industry trends and deep understanding of the client’s requirement. It offers independent and insightful support at each stage of business.
vital resources i.e. time and money by examining the areas prone to inherent business risks.
In today’s Global economy wherein ownership and management are separate, operations of business are wide spread and conducted remotely, Internal Audit (IA) is not just another statutory requirement but it is an approach towards risk based internal assessment. IA has become an implementation tool for achieving organizational goals.
Over the period of time Internal Audit has evolved from a reactive model to a proactive model
IA is an independent management function which involves continuous and critical appraisal of the functioning of an entity with a view to strengthen the overall mechanism of the entity including entity’s strategic risk management and internal control system. Evolution of Internal Audit
Internal Audit function is expected to add value by highlighting leading industry best practices, acting as independent advisor to all stakeholders & actively participate in enterprise risk management.
IA helps you identify areas where your business can save
Traditional (Reactive) M odel Audit in silos
New Age (Proactive) Model Risk based (Integrated) audit
Auditing around the system
Auditing within the system
Bottom–up approach
Top-down approach
Act as an internal control
Controls embedded within the process & fixing process owner accountability for continuous monitoring
Focus on limited principals such compliance as and assurance.
Concurrent focus on multiple principals such as risk assessment, compliance, cost reduction, etc.
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OCTOBER 2018
Leadership Thought
About the Author Rahul Nahata, is a Chartered Accountant by profession having an extensive experience of more than fifteen years. He is the Co-founder of RANK Group having the motto of “Addiction of value Addition�. His determined self always strives to add value with the solution-oriented exceptional ideas and approach while catering to the clienteles. He strongly believes that organic growth of all the stake holders will ensure growth of an organization and is easily approachable to all in the organization lending a peaceful ear to everyone around.
New Age Internal Charter
OCTOBER 2018
39
Purpose of Internal Audit
40
OCTOBER 2018
Traits
of Becoming
a Chartered Accountant
C
hartered Accountancy is one of the toughest and challenging finance professions and clearing the examination is definitely an achievement in itself. The people who are willing to pursue this career, should certainly examine the required strengthens and weaknesses, as the course is complex and demands investment of time. It is evident that being an established chartered accountant involves consistent hard work, efforts and must have a key personality that makes a level-headed, detail-oriented and innovative individual. Having this approach with a proper skillset leads to a successful path in the accounting profession and also builds long-term career goals. Here are some of the measures that one can incorporate to become a good chartered accountant.
to be preserved in order to fetch any data that’s required and been able to find it easily and quickly. This system can be defined by using advanced apps, programs, planners, calendars, which will help one stay highly efficient in the longer run. They have a set of responsibilities like managing portfolios, handling transactions, keeping in account of important meetings, and to make sure to meet the deadlines without any unnecessary interruption. Accountants should be hands-on in organizing their work to maximize productivity and make time for further research and analysis. It is must for them to keep up with the current happenings in the market and be well aware of introduction of new laws and acts.
specific amount of time for a task and get it done by the end of that time period. This will give the chartered accountant an idea to handle the work load and also set priorities to manipulate between varied tasks. Accountants are also playing a vital role in contributing to strategic decision-making and this makes their timetables full to the brim. Not only do they conduct financial management but also have many tasks beyond that. To be able to complete all the work within deadlines and to continuously be on the go will successfully take a chartered accountant far. Having all these skills, will set a good impression in front of the boss, colleagues and respected clients and will also maintain a healthy work and personal life balance by making efforts towards productive day.
Time Management Skills Communication is the Key
Maintaining a Well-defined System The accountants should keep up with the figures, data and paperwork in their day-to-day jobs. A precise system needs
Having a set of good time-management skills goes together with strong organizational abilities. Every accountant makes it a habit to allot a 42
Having strong a communication skill is incredibly valuable as that makes an instant good impression. This is an OCTOBER 2018
Editor’s Pick
digital age, where companies are changing at an accelerated pace, the accountants must adapt and take advantage of the necessary alterations. Being at the Forefront
important trait as it helps to grow professionally and achieve greater heights in the career path. Communication develops successful long-term relationships with clients, builds a good team-coordination and helps socialize. Having well-developed interpersonal skills will come handy for networking. An accountant must be able to communicate and collaborate with colleagues from different sectors. They can use different data visualization form to support their communication effort and confirm that their insights are properly understood. Camouflaging the Environment The accounting industry is very dynamic and the accountants, who are OCTOBER 2018
able to adapt to its surrounding simply will survive in the game. Tackling the challenges effectively and responding to the changes in the working environment will make up for a valuable member of the organization. These individuals deliver top-notch service offerings to the clients due to their ability of learning new lessons every day and implementing it to analyze the output. Seeing every challenge as an opportunity can work in flavor as every challenge is a lesson to go and grow further. It is imperative to be always active and adding extra efforts to be aware of the salient modifications happening in the company. This is win-win situation, as it will earn an individual respect from colleagues and clients. Hence, in this 43
A good leader is the one, who knows how to mentor and teach and should be approachable and available to the members. The right blend of balance is required in being a role model and a colleague of the team. It also requires confidence, patience and the ability to make a difference by raising a voice for the team and the company. To reach the top of the pyramid, one needs to be attentive to all the minor details and diligently work to accomplish any task set forth. In the field of accounting, leadership skills also include strategic thinking and long-term planning. Some of the accountants also offer consulting services, which means giving advice and business solutions for the company’s betterment and improving its key operations. The top players in the accounting field are often known for being visionary and taking important logical decisions with a pinch of creativity. The above scenario highlights a wide-range of qualities and other aspects needed to become a good chartered accountant.