According to the Institute of Chartered Accountants of India (ICAI), there are around 1.3 Lakh fellow and associate chartered accountants who are either in full-time or part-time practice.
CAs may not encounter much competition due to their low number when opting for employment or establishing their own firm.
The problem arises when you seek to expand your CA firm. There are several obstacles you may face when growing your practice.
For example, you:
Can only form an LLP or partnership and not a company.
Cannot solicit or advertise.
Have to pay a considerable commission when availing clients via referral. Worse, there may be a list of referrals for which you have to pay multiple commissions.
These problems can lower your profit levels. Hence, you don’t have ample surplus that you can invest for expansion.
Following are some tips that can help you circumnavigate the same and help you grow your practice:
1. Add new partners
One of the ideal ways to expand your CA firm is by adding new partners. Now, the primary problem that you may face here is to provide acceptable conditions for this new partner.
Preparing a contract is essential before you add a new partner. You can choose to share the profits and pay a retainership to this partner if your firm has adequate revenue. On the other hand, you can only share the profits if your practice is new.
Adding new partners not only expands your firm but also aids you if you seek to get empanelled with the CAG’s office. The CAG appoints CA firms based on points. The more full-time partners you have, the higher score you will earn.
2. Ask for referrals
Asking for referrals is another exceptional way to expand your firm. One of the best solutions here is to contact the practice from where you have completed your CA articleship.
3. Attend seminars and social events
Look out for programs where you get to meet stalwarts from top organisations. Attending these seminars and social events is crucial to expand your network and bring in more business.
4. Provide complementary services
Another way to expand your CA firm is to offer complementary services to your existing customers. Offering additional services for free that your clients have to pay for with other firms can help you expand your practice.
5. Always ask for an advance
Many a time, clients take a prolonged time to make payments. Hence, you must always make sure to take an advance before you start on a project.
6. Promote via economic websites
Numerous websites publish third-party articles related to the economy, finance, taxation, etc. Writing informative and helpful posts on such websites not only enables you to indirectly talk about your firms but also bring in clients.
7. Opt for external funding
You can avail a CA loan to grow your firm. Expanding to a new location, buying more equipment, or even hiring new staff are some superb reasons to opt for these loans.
NBFCs like Bajaj Finserv offer Business Loans for Chartered Accountants within a day post approval against minimal documentation. You only need to have an active Certificate of Practice professing at least 4 years of practice to benefit from their affordable EMIs and multiple repayment tenors.
Bajaj Finserv also brings you pre-approved offers that help you save time when availing finances. Pre-approved offers are available with unsecured loans (business loans and personal loans), secured loans (home loans), and an array of other financial products and services. Provide only your few essential details to check your pre-approved offer.
Initiating and running a CA firm successfully should include these tips and more. Make sure to follow a step by step guide to start a CA firm to further help you implement these tips more easily.