Why Do Companies Need A CA Firm In India?

Over the last couple of decades, businesses have witnessed multiple disruptions. Apart from the conventional challenges that a company might face, from time to time. It would also face black swan events like the COVID-19. A single business caters to a variety of stakeholders, and hence their focus should be on their own business. And doing the best they can be regarding the same. With a complex environment and evolving regulations, a company would need a CA firm in India to tackle the challenges associated with the land laws.

Here are multiple reasons that justify the requirement of a CA firm for companies:

·       Tax Planning:

Tax planning can enable a business owner to increase the bottom line substantially. A CA firm in India can work closely with a business owner to explore tax planning activities. Tax planning involves reducing tax liabilities as much as possible while conforming to tax-related regulations.

·       Compliance with laws:

A business may have to deal with a plethora of laws depending on the industry they operate in. Even the most essential sector has to handle and comply with Income Tax, Goods and Service Tax, Companies Act, Provident Fund, etc. A CA firm in India can ensure compliance with different laws to avoid any penalties or default. The company and the management can focus on their business, whereas the CA firm would handle the compliance.

·       Expertise in a variety of fields:

A CA firm can provide a variety of services that may not be limited to taxation alone. Transaction advisory services are an aspect of a CA firm in India that is often underrated. A CA firm in India can provide advisory services concerning due diligence, valuation services or even partake. And assist in the negotiation aspect of a Mergers and acquisitions deal. The company can take advantage of the variety of services provided by a CA firm. And allow them to avail all services from a single place.

·       Risk Management:

Risk is an inherent part of any business being conducted by an organization. A risk-free business is a myth, and risk management is one of the most critical tasks for a business organization. Depending on the type of risk being undertaken, risk can either be mitigated or management techniques can be implemented. A CA firm in India can assist the management of a business to identify risks, quantify them, and devise strategies for risk management. Risk Management can include the creation of internal controls, usage of derivatives, and the formation of business continuity plans. Risk Management allows the business to survive and function in case of unforeseen circumstances.

·       Creation of internal control systems:

One of the critical kegs of Risk Management systems while also allowing the business to maintain a grip on information flow in a company. Internal control systems enable the concept of maker-checker and supervision to flourish in a business. A CA firm can examine the industry and how information and documentation travel. Between departments to create a proper internal control system. The internal control system invokes discipline, reduces chances of fraud, and ensures ease of audit for a business. Apart from creation, CA firm in india can also help with the regular updation of internal control systems.

CA firms in India provide and assist in a variety of manner. Contrary to popular belief, CA firms are not all about accounting and taxation. In India, Dewan P.N. Chopra & Co., KPMG, Deloitte, etc., can provide a wide variety of services and secure multiple solutions to various problems in a single place.