CAs are in demand — and here are the skills in focus

Welcome to Finance Wrap India, a simplified fortnightly guide to everything finance, told through the voice of experts on LinkedIn and put together by LinkedIn News India editor Preethi Ramamoorthy.

In this edition, we delve into:

💸 Why CAs are in demand in India

💸 Top conversations among finance professionals

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July is a busy month for Chartered Accountant (CA) aspirants in India. The results for the foundation examination were announced last week and the overall pass percentage stood at 14.96%. Around 92,000 candidates appeared for the exam earlier this year.

There are over 850,000 students and 400,000 CAs in India – but the demand continues to be high. In fact, a recent report reveals a 47% growth in demand for CAs in FY23, compared to the previous year.

Professional services companies and dedicated CA firms are offering pay hikes of as much as 50% for lateral hires. Rising compliance requirements is fuelling demand for experts in goods and services tax (GST), corporate taxes, initial public offerings (IPOs), and audit work, reports suggest.

But CAs are finding it more challenging to get hired into consultancy firms, as they are increasingly recruiting STEM (science, technology, engineering and mathematics) graduates too. For instance, STEM graduates make up for around 10% of EY’s 5,500-strong workforce in India. At Uniqus Consultech, 15% of the workforce consists of STEM freshers.

In such a scenario, how can CAs upskill and ensure career growth? “They should familiarise themselves with data analytics tools and techniques such as data mining, predictive modelling, and visualisation,” says Vaibhav Jain, Partner at Mehra Goel & Co.

Abhishek Bhavsar, Founder AB Advisory Group, says it’s important to understand the processes involved in various services such as specific compliances and litigations. “Keep updated on legal frameworks, including compliance and litigation procedures, computation mechanisms, and areas of litigation. Continuously enhance your skills with tools like AI and Power BI tailored to your field of expertise,” he says.

Many countries are outsourcing their accounting work to India and its booming startup ecosystem is always in need of experienced CA consultants, experts say.

“The accounting sector in the U.S. is facing a workforce shortage, exacerbated by retirements and fewer graduates,” says CA Manish Mish₹a , founder, GenZCFO. “American firms are increasingly seeking skilled Indian accountants, familiar with international standards, to fill this gap.”

More CAs are also moving to “relatively safer” options, Financial Express reports. And auditing verticals in top firms are operating with 20% lower staff than the required strength. Reason? Heightened regulatory scrutiny and expanding opportunities beyond traditional audit. 

How can firms attract the right talent? “Candidates, especially CAs, want to know that their work makes a significant impact,” Mishra says. “Highlighting how their role influences their department, the company, and wider society can foster this sense of fulfilment.”

Soft skills for accountants

“Accountants should have good communication skills to be able to gel well with the people in your organisation,” says CA CA Rachana Ranade, founder, Rachana Ranade and Associates.

They should not feel that they are into a pure hard-core desk job, she adds.

Tune is as Ranade shares more such insights and share your thoughts in the comments below — what soft skills should accountants build?