Gone are the days when clearing the entrance examinations for a CA was considered the most difficult phase. Today, expanding CA firms has become more challenging. The lack of advertisement risks the growth of every CA firm. Additionally, the enormous referral commissions directly impact the profitability of the firm.
The obstacles faced by CA firms limit their expansion. If you’re unable to understand, how to start a CA firm and expand it, go through the following tips mentioned below.
Tips to expand a CA firm
1. Form active networks
A majority of CA firms work on the basis of referrals. The referrals act as a strong base of reputation and network management. A chartered accountant must connect with his close friends, family, and regulatory bodies like Comptroller and Auditor General of India (CAG), National Highways Authority of India (NHAI), and so on.
2. Provide qualitative service
The biggest challenge faced by a majority of CA firms is gaining clientele and retention. Therefore, these CA firms must provide value-added services like helping the clients to procure loans, draft their feasibility reports, manage their cash flow, and so forth. If a CA firm offers qualitative services, their clients will depend on the firm for multiple functions, which in turn, increases their retention.
3. Hire a professional
Seeking expert or specialized services determine the success of your firm. With professional services, CA firm delivers outstanding services to their client. Moreover, one can meet the tight deadlines with the right support from specialists. It will lessen your burden during the peak filing seasons.
4. Partner with the right people
Bringing in new people in your venture is an ideal way to diversify the offerings of your firm. The new partners not only gain visibility but also provide expertise in different genres. While adding partners, prepare a revenue-sharing model based on the nature and experience of your work. The revenue-sharing agreement plays a significant role in profit sharing amongst the partners.
5. Stay updated on the current trends
Updating yourself about the latest market developments is as essential as expanding your CA firm. When you stay updated, you’ll eventually find out your competitors and the effective ways to tackle it. Moreover, a CA must also understand the current technological needs. You can sign up for various post qualification courses like information system audit, a concurrent audit of banks, and so on.
6. Specialize in various fields
According to the 68th annual report of the Institute of Chartered Accountants in India (ICAI), there are over 2.7 lakh CAs in India. A majority of CAs can grab this opportunity to enter into new markets or segments for providing services. One can start by serving for audit, taxation, and financial reporting.
7. Offer GST consultancy
Due to the recent indirect taxation system, there is a rise in the tax-paying businesses. The constant revision in the tax rate labs has garnered more work for the CAs. The clients look forward to seeking financial advice in matters of compliance and reporting. Hence, every CA must increase his indirect tax practice as well as offer clients with GST consultancy.
8. Emerge as a leading practitioner
Focusing on the area of specialization helps CA firms in the long run. However, a majority of CAs provide multiple services to increase the clientele. Diversifying services in varied areas turn you into a go-to person for every financial concern. If your firm serves its clients with numerous service, see to it that you don’t lose focus on your area of interest.
To sum up, the expansion of your firm is possible with the right services and guidance. However, capital is a crucial requirement for the growth of your business. Business loan for chartered accountants is the most common solution for the expansion. A CA loan aids to you by boosting your Return on Investment (ROI). Bajaj Finserv business loan provides every CA with uninterrupted financial support to grow their firm. You can also check you EMIs with the help of easy to use business loan EMI calculator for chartered accountants.
In case you are starting a new CA firm, you should also know the meaning of SME Loan and its benefits.
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