When Do You Need A Chartered Accountant?

Given the influx of fintech companies today that can help you with your finances and filings, the (sad) truth is that you don’t really need a Chartered Accountant in your life. Especially if the only interaction you have with them is the annual ‘please help me file my tax’ email. Trust me, even they don’t want it.

That said, there are three occasions where I truly believe that having a CA in your life – rather, nurturing a relationship with a CA is essential.

When your income is over 40LPA

40LPA and the whereabouts of is truly where I believe you need a CA in your life. It doesn’t matter where this income is coming from – salary, rental income, interest, a side hustle, or all of these things put together. When your income crosses this threshold, the value that a CA can bring in terms of optimising your tax outgo is significant. If you’re making more than 40LPA as a salaried professional, it becomes especially important to have a CA you know and trust because there may be allowances or deductions that you are entitled to, but unaware of.

When you’re planning a large transaction

If you’re planning a large transaction, maybe you’re buying a house, selling a house, liquidating ESOPs, acquiring property, selling off your investments…whatever the case may be, if the amount of money you’re dealing with is large, consult a CA before you enter the transaction to ensure that everything is in place from a tax and compliance perspective. There have been so many instances during my time in practice where I’ve seen people run from pillar to post in the Income Tax Offices simply because they didn’t consult a professional before they undertook the transaction. Prevention, especially when it comes to managing your finances, is always better than cure.

When you’re running a small business

If you’re running a business full time – it doesn’t matter what the size of your revenues are – make sure you have a CA to help you out with book-keeping. Having a CA from the start will not only be beneficial from a compliance perspective and being up to date with filing, but it will genuinely help you focus on growing your business (instead of being mired in administrative work). By working with a CA, you’ll be able to see – more clearly – where your big cost centres are and how you can run a more efficient ship. So don’t underestimate having a CA as a growth driver for your business.

Do you have a CA? What is your relationship like? Let’s chat in the comments!