Raj: Hey Rohan, can I have a look at this month’s accounts, I have to suggest the board of members about the areas where we can cut down our costs.
Rohan: Sure, I just audited the sheet. And my calculations tell me that we saved 20% of taxes this time.
Here Raj is a Company Secretary (CS) who has to advice the company for its benefit and growth, and he is asking Rohan who is a Chartered Accountant (CA) to have a look at the finance sheet.
Both Raj and Rohan are two very important professionals needed in the business world. One is an expert in accounting and finance, while the other is an expert in company law and corporate governance.
Despite this difference in the roles, the two careers – CA and CS are often confused between by people who don’t know the difference between the two. Being two of the most popular career options for Commerce students, they are often closely compared.
If you have landed on this article, surely you must too be puzzled by the exact differences between the two. So if you are having a hard time making the choice, let’s help you out by comparing CA vs CS.
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Who is a Chartered Accountant (CA)?
Chartered Accountants are professionals who minimize risks, losses and maintain accounts of firms and companies with their accounting skills. They work across various domains of business such as audit, taxation, investment, finance, etc. to increase the profitability of the firm.
Who is a Company Secretary (CS)?
Company Secretaries are professionals who act as consultants to the board of directors of companies on matters of management, administration, finance, accounting, taxation, etc. Their job involves giving advice on business and company laws, dealing with situations involving a conflict of interest, suggesting ways to prepare financial reports, developing corporate strategy, and assisting in planning.
Now, let’s look at the specific differences in their career path, nature of work and more.
Chartered Accountant (CA) Vs. Company Secretary (CS)
The corporate jungle is growing and it’s only going to expand with time. The concrete foundation of this jungle is the chartered accountants and company secretaries. These people offer their extensive skills for companies to assist them in their smooth working and development.
1. Differences in Career Path
The beginning of both their journeys starts from the commerce field but further divert in two different parts. Mathematics is not a compulsory subject for either of them, but you will have a harder time pursuing these courses without a solid foundation in Maths (especially for CA).
The primary institute for qualifying chartered accountancy is Institute of Chartered Accountants of India (ICAI), Bhawan. For CS, the qualifying institution is ICSI- The Institute of Company Secretaries of India.
How to become a Company Secretary (CS)
To pursue a career as a Company Secretary, follow these steps:
- Register with the Institute of Company Secretaries of India (ICSI).
- Pursue the foundation course for 8 months.
- Pursue the executive program for 1 year.
- Pursue the professional program for 1 year.
Alternatively, you can also go for the Company Secretary course after completing your graduation. The route is as follows:
- Pursue graduation in a commerce field for 3 years
- Pursue the executive program for 1 year.
- Pursue the professional program for 1 year.
How to become a Chartered Accountant (CA)
To become a CA in India, you need to go through the following steps:
- Register with the Institute of Chartered Accountants of India (ICAI).
- Clear the Competency Professional Test (CPT) and pursue Bachelor of Commerce (full time).
- Clear the Integrated Professional Competence (IPC) Examination.
- Pursue Articleship for 3 years.
- Clear the CA Final exam.
You can take the CPT exam right after class 12th to enrol into the course. However, you need to be a graduate to give the IPC examination. Alternatively, you can also complete your graduation and directly enrol for the IPC examination.
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2. Differences in Duration
Both CS and CA involve 3 levels, but the duration for the steps differs. On an average, CS is a shorter course, and takes about 2-3 years, while CA takes about 5 years to complete.
3. Differences in Subjects
The subjects you will study as part of a Chartered Accountancy course will focus on domains such as Accounting, Banking, Finance, Taxation, etc.
Some subjects include:
- Fundamentals of Accounting
- Cost Accounting and Financial Management
- Auditing and Assurance
- Management Accounting and Financial Analysis
- Direct Taxes
In a Company Secretary course, you will study subjects that will help you become an expert at company law. Some subjects include:
- Basic Economics and Business Environment
- General and Commercial Laws
- Tax Laws
- Company Law
- Economic Labour and Industrial Laws
- Banking and Insurance – Law and Practice
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4. Differences in Nature of Work
Company Secretaries organize and prepare agendas to oversee policies, maintain statutory books, deal with correspondence, collate information, write reports, advise members on the legal, governance, accounting and tax implications of proposed policies. They also take responsibility for the health and safety of employees and manage matters related to insurance and property.
On the other hand, Chartered calculate taxes; prepare tax returns, review account books and accounting systems for efficiency and use of accepted accounting procedures. They assess financial operations and make best-practices recommendations to management, suggest ways to reduce costs, enhance revenues, and improve profits.
CAs also review the company’s systems and analyse risk; advise clients on tax planning, tax issues, business acquisitions and mergers.
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5. Differences in Workplaces
Company Secretaries have the option of joining corporate sectors as they assimilate and maintain corporate laws, governance, administration, board and shareholders meetings, etc.
Keeping aside the option of the corporate sector, a company secretary can opt for independent practice as well.
Independent practitioners require a certificate from ICSI to practice independently. They can be employed by small firms on retainers for professional advice and support on issues such as licenses, registrations, loans, taxes and partnership deeds.
Chartered accountants have much more diversified options for selecting a workplace. These include government organisations, private organisations, business enterprises, the banking and insurance sector, law firms, civil services, etc.
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Conclusion
In a nutshell, Company Secretaries are in house legal experts who with their knowledge and wit, advice companies in decision-making. On the other hand, Chartered Accountants use commerce-related tools to maximise profits for a company. What they have in common though is hard work, dedication and the right analytical aptitude.
Hope this blog gave you a clear insight about both of the careers and makes your choice easier.
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