Careers and Courses – Page 10

The Institute of Cost and Works Accountants of India (ICWAI) name has been changed to The Institute of Cost Accountants of India (ICAI) with effect from 1st February 2012. The Institute is a statutory body under an Act of Parliament. A professionally qualified is called – CMA (for Graduate Member) , ACMA (Associate Member) and FCMA (Fellow Member). The Hyderabad Chapter of Cost Accountants have got ISO 9001:2008 certified chapter. Chartered Accountancy is another important career for Commerce students. You can get the comparison of CA and Cost Accountancy careers in another detailed article. Here are FAQs on Cost Accountancy:

1. What are the recent trends in ICAI training?

The Institute provides postal coaching and oral coaching in ICAI course, conducts examination and issues Certificate of pass. The syllabus undergoes changes periodically encompassing developments in industrial sector. ICAI syllabus is developed on four knowledge pillars – Financial reporting, Regulatory function, Management function, Strategic planning.

ICAI curriculum includes core subjects like finance, costing, taxation etc. Further, IT training & Modular training are imparted to students. Besides this, from 2008 onwards students have to undergo practical training under Practicing Cost Accountant or on the job training in industry. In sum, ICAI course is now a judicious blend of theoretical coaching and practical training in the field of Management Accounting.

2. How the employment opportunities are growing for ICAI candidates?

The opportunities galore for Cost Accountants in the areas of Cost Records maintenance, Costing System designing and implementation for manufacturing and service sector, Cost Audit assignments, Valuation services for indirect tax authorities, Certification services under compliance report, Faculties on Cost and Management Accountancy, Management Consultancy Services like management audit, energy audit, efficiency audit and environmental reporting.

3. What kind of aptitude and attitude is required for the students to succeed in the course and in the career?

Students should have logical, analytical and also technical skills as they need to understand various processes specific to the industry and their impact on cost so that correct cost is reflected in the price which includes perfect profit. The main attitude required for the ICAI students is that costing should be their intense area of interest, liking for numbers, studious studies.

4. What is the best time to start preparation for ICAI course? Why?

The best time to start preparation for ICAI course is after intermediate since students can go for foundation course along with their degree and they can complete their degree along with professional course. In 3 years a student can obtain twin qualifications i.e. Degree and ICAI.

5. Advantages and disadvantages for students with different academic backgrounds (Science, Maths, Commerce, etc)?

To put it categorically, Science students will find the course interesting due to the technical subjects like operations management wherein different machines and various processes are studied. Maths students find Business maths, statistics, operations research and project management subjects easier with their logical and analytical skill by ascertaining the logic of the impact of an activity on cost.

Commerce students, on the other hand find financial, cost accounts and taxation subjects easier due to their back ground strength in B. Com. course. To put in nutshell, ICAI course is a strategic mixture of accounting, taxation, technical and managerial subjects leading to proficiency in professional career. ICAI is not just a course but it is a career which any one can pursue in the competing professional field.

In a society that over values Engineering and Medical courses, Chartered Accounting and Cost Accounting standout as dream careers. The Institute of Chartered Accountants of India (ICAI) has consistently been churning out meritorious students since its inception in 1949. Around 9 lakh students have enrolled till now and out of that around 1.75 lakh have passed over the past 60 years. This would mean on an average around 3,000 Chartered Accountants join the profession every year. Of late the number of CAs joining the profession each year has moved up to 10,000 plus. As of now 4.5 lakh are still pursuing CA. There is a steady surge in the number of girl students opting for CA course in the recent past. Around a lakh new enrollments take place every year.

The Institute of Cost and works Accountants of India, which was recently rechristened as “the Institute of Cost Accountants of India“ is the only recognized statutory professional organization and licensing body in India specializing exclusively in Cost and Management Accountancy. The institute has 50,000 members and overseas training and qualification of 4,00,000 students aspiring to be Cost Accountants. The need for cost accountants too is growing making this profession also a dream career. You may have several questions and doubts on cost accountancy career, for which answers were given in another article.

Stages in completing Chartered Accountancy and Cost Accountancy:

There are three stages in both Chartered Accountancy and Cost Accountancy. The stages in Chartered Accountancy are Common Proficiency Test (CPT), Integrated Professional Competence Course (IPCC) and IPCC Final. There are two groups in IPCC. After passing Group – I of IPCC, a candidate must undergo a rigorous 3 year on-the-job training as article or audit assistant, articleship. Only members in practice are entitled to engage such assistants. IPCC Final also has two groups. The three stages in Cost Accountancy are Foundation, Intermediate and Final. Intermediate and Final stages have two groups each.

Both the Institutes are integrating skill development courses such as IT Training and Communication skills in these professional programs to meet the corporate requirement for computer and soft skills. It is generally perceived that Cost and Management Accounting is more difficult to qualify than Chartered Accountancy. However demand for Chartered Accountants is more than the demand for Cost Accountants.

Examinations:

The foundation course examinations are held in June and December every year in both the programs. The IPCC and IPCC Final examinations are conducted during May and November every year. In the case of Cost Accountant the examinations are conducted during June and December every year.

While both Chartered Accountants and Cost Accountants are high profile career paths, the market pays higher compensation for CAs. Because of the statutory role that the Chartered Accountants have in certification of Company accounts, they can also have thriving private practice. The growth in the industry during the post-liberalization era has led to high demand for both Chartered Accountant and Cost Accountants. There was no corresponding growth in the qualified professionals. Hence the demand for these professional is here to stay.

A Chartered Accountant usually starts his career with a package of around Rs.6-8 lakh. For successful Chartered Accountants the sky is the limit for their earning potential. The Cost Accounts do have good earnings package, but may be marginally lower than the Chartered Accountants.

Differences between CA and CMA:

1. The Chartered Accountancy course equips the student with in depth knowledge on every aspect of accounting, auditing and taxation where as the Cost Accountant would focus more on cost and financial management leading to a fine balance between expenditure and the available resources.

2. Chartered Accountants are involved in the core accounting work that is a part of day-to-day business. Cost Accountants concentrate on the costing of the financial transactions.

3. Chartered Accountants analyse risk and design of effective financial systems, work on optimizing taxation and undertake auditing work and are authorised to certify the annual reports and balance sheets. On the other hand the Cost Accountants assess the feasibility of projects, design cost controls and management systems for effective cost cutting measures.

4. The skill requirement for Chartered Accountant includes logical and methodical approach in work, attention to details, patience and confidence to handle responsibility. A Cost Accountant needs analytical mind to interpret facts and figures, logical approach in work, attention to detail, ability to communicate expressly and clearly.

5. Those who are extremely good at accounting and number crunching should opt for Chartered Accountancy. For those who are comfortable with accounting and interested in cost management part of it, Cost Accountancy is the right course.

6. In terms of earnings potential, CA is considered to be better as it has got more scope for employment. A Cost Accountant is eligible to undertake Cost Audit under Sec. 233B. But a Chartered Accountant can undertake Cost Audit as well as Statutory Audit. Chartered Accountants are preferred for Tax Audit. Despite continuous efforts to increase the awareness on Cost Audit, many companies are still not implementing this for various reasons.

There are many career opportunities for commerce students. But the dream careers are offered by Chartered Accountancy and Cost Accountancy. Those who want to reach top positions and would like to get involved in high level decision making should pursue these programs. For the hardworking and intelligent students moving away from Engineering and Medicine and pursuing courses like Chartered Accountancy and Cost Accountancy are more lucrative. These professions are promising and success is within the reach of the students. Let a million dreams come true in this fascinating world of accounting and finance. But in the end it all depends on your Dedication to Studies and Experience. Earnings grow automatically.

Cost Accountancy Career – Questions and Answers

CA or Cost Accountancy – Which is Better Choice