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Kamaldeep
12 June, 2024
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“In the ledger of life, every entry represents a choice and accountants ensure those choices are accounted for.” – by Jessica Turner
In school, there are science students who dream of becoming doctors or engineers, and there are commerce students who aspire to become chartered accountants. We cannot deny that there is a craze among youngsters to become Chartered Accountants in India. While these are some of the highest-earning professions, it is not an easy nut to crack. It takes years of rigorous preparation and training to become a CA. Once you cross the preparation phase, the results are simply awesome, be it in the income of a chartered accountant or professional growth.
As the nature of this profession is vast, every turn of a CA demands precision. After all, the company’s financial stability is in his hands. Apart from this position’s prestige, a Chartered Accountant’s income is also high. So, how much do they exactly earn that almost every other student is ready to dedicate himself to this field? Last year in December, NDTV shared a report which showed that most of the CAs at the Institute of Chartered Accountants of India (ICAI) secured a domestic package of INR 23.70 LPA. Based on this report, the average salary package was around INR 11.17 LPA.
Wait! Is it that simple? Just like its qualifying process, the income of a Chartered Accountant relies on various factors. So many candidates question what will they get after investing years of effort in this. Through this blog, we have explained the salaries of a Chartered Accountant based on their city, experience and other factors.
But first, let’s see who is a Chartered Accountant and what are the job responsibilities.
In simple terms, a Chartered Accountant is a finance professional who has to execute accounting procedures. CAs mainly deal with accounting tasks but their responsibility also involves auditing, taxation, and general management work. A Chartered Accountant is an internationally acclaimed professional, so every country has its separate professional body that awards the certification after clearing a designated exam and a certain number of years of practice.
In India, we have the Institute of Chartered Accountants of India (ICAI) which regulates the income of CA and whether or not a candidate is eligible for this post. The job role of a CA is vast or narrow depending upon his/her focus area. Chartered Accountants are employed in four major sectors including corporate finance, public practice, forensic accounting or with major businesses. Accordingly, the income of a CA will vary.
Before moving into this profession, let’s know the roles and responsibilities of a Chartered Accountant.
Preparation of financial statements, bookkeeping, and financial analysis
Keeping track of an organisation’s income and expenses
Critical thinking and ability to make critical decisions
To ensure that financial statements are prepared as per the accepted accounting practices
Analysing complex situations to generate a high revenue
Prepare tax returns, present them before tax authorities and offer tax-related advice to his clients
Has to figure what will be the cost of production and what will be the expense at each stage
Use cost control measures and fair selling price
He/she has to conduct frequent inquiries of a company’s financial status
Analyse the financial statements during the acquisition, sale, reconstruction or merger of businesses
To improve the management in order to identify the reason behind the rise or fall in earnings
Play an essential role in the management of small businesses
Provide secretarial services
Some other responsibilities of a Chartered Accountant are:
Preparing profit/loss accounts and balance sheets
Ensuring that the financial aspects of the company are in line with laws
Assisting clients with financial advisory
Evaluating accounting systems and laying improvement plans
Analysis of financial reports to enhance profitability and growth
Preparing and maintaining business performance reports for management review
Managing payroll, reviewing budgets, and investments
Chartered Accountants are skilled professionals who play a major role in the Indian economy. They are like gatekeepers who keep the country’s financial health in check by offering invaluable services such as Auditing, Financial Planning, etc.
If you are working as a Chartered Accountant, your role will be pivotal in ensuring a prosperous economy. You will be responsible for auditing, taxation, and offering financial advice. All these services are crucial to ensuring success in any business organisation. Thus, you can get handsome salaries.
The average salary for a CA in India is around ₹10 lakhs per annum. However, the actual income depends upon a multitude of factors, such as:
Experience: One of the most important factors that affects the salary is experience. The more experience you have, the more valuable you are to your employer. Therefore, you can command a higher salary. Entry-level Chartered Accountants can expect a salary of around INR 6.6 lakh and those with experience can expect a salary of around INR 10 lakh per annum.
Location: The location where you work can also affect your salary. Chartered Accountants who work in metro cities earn more than those who work in smaller towns and rural areas. This usually happens due to the higher cost of living and more opportunities in these areas.
Industry: The industry you work in also affects your salary. Chartered Accountants who work in particular industries, such as Finance, Banking, and professional services, can expect to earn more than those who work in other industries.
Employer: The company where you work also impacts your salary. Chartered Accountants employed by MNCs generally earn more than those working for start-ups & small businesses.
Qualifications: The qualifications you have can also impact your salary. Chartered Accountants who have additional qualifications such as MBA, can expect higher salaries.
Chartered Accountancy is the most celebrated profession in the commerce field. Apart from the immense career opportunities that await on a global level, the income of a CA is much higher than any other job profile. The high salary potential and growth in this field are what attract candidates. So, knowing the salary potential of a career helps decide whether you want to pursue this professional journey besides the job responsibility.
The question is how much a Chartered Accountant makes. Well, it depends on various factors such as the company they work at, industry, city and experience. Here we have provided a detailed review of salary for Chartered Accountants:
| Years of Experience | Average Salary |
| 0 – 1 years | INR 7 LPA |
| 3 years | INR 7.6 LPA |
| 5 years | INR 9 LPA |
| 7 years | INR 9.8 LPA |
| City | Average Salary |
| Delhi | INR 11.7 LPA |
| Mumbai | INR 12 LPA |
| Bangalore | INR 12.6 LPA |
| Pune | INR 11.4 LPA |
| Kolkata | INR 15.8 LPA |
| Chandigarh | INR 16.9 |
| Company Name | Average Salary |
| KPMG | INR 21.9 LPA |
| EY | INR 14.3 LPA |
| Deloitte | INR 21.5 LPA |
| PwC | INR 12.6 LPA |
According to Ambition Box, the income of a Government of India-employed Chartered Accountant with 2 to 9 years of experience is around INR 21.6 LPA.
To become a proficient Chartered Accountant, here are some of the skills you must have:
In-depth knowledge of accounting and auditing standards
Understanding of tax laws
Skills to analyse financial records
Proficiency in various accounting tools such as Tally
Must have knowledge of regulatory standards and compliance
Analytical skills
Critical thinking ability
A keen eye for detail and organisational skills
Sound presentation and communication skills
Problem-solving attitude
Strong leadership and management skills
Ability to handle pressure
Risk management skills
You can register for the CA Foundation course after 12th. You can apply through the official ICAI website.
The CA Foundation course is divided into four subjects and two groups. You have to study diligently for the exams.
After clearing CA Foundation, the exams will be conducted twice a year, usually in May and November.
You can enrol in the CA Intermediate course to clear your understanding of accounting, auditing, taxation, and related subjects.
Before CA Intermediate exams, finish Articleship training at a CA firm or under a practising CA.
You have to attempt the CA Intermediate exams, which occur twice a year.
You have to sign up for the CA Final course after completing CA Intermediate and finishing Articleship.
Be ready for the CA Final exams. The course will cover advanced topics, so make sure to prepare thoroughly.
Now, you have to go for CA Final exams, which are conducted twice a year, usually in May & November.
You have to go for General Management & Communication Skills training to improve your communication and managerial abilities.
Now, you have to apply for ICAI membership. After approval, you can become a qualified Chartered Accountant.
You must have understood by now that the income of Chartered Accountant depends on various parameters. To find which category and salary slab you fit in, you need to verify all the factors. Usually in metro cities and government organisations, the income of CA is high compared to other regions. Moreover, the salary range changes every year as the market moves. The path to this lucrative career opportunity may look hard, but those with sheer determination and the right skills can build a successful career and earn pretty well.
As said above in the blog, the income of CA will depend on various factors. However, a CA can earn between INR 67,000 to 90,000 monthly, having 0-3 years of experience.
Earning 1 crore per month isn’t easy, on an average a highly experienced CA can earn upto INR 40 LPA per year.
A CA fresher can earn salary ranging between INR 7 TO 8 LPA depending upon his/her skills and job location.
To get the CA certification you should have completed bachelor’s degree. You can start your preparation after 12th but unddergration is the basic eligibility criteria.
Generally, completing CA takes 3 years but the duration may vary from person to person and how long it takes you to qualify one exam.
