How Much Do Chartered Accountants Make? Salary Guide

Updated 26 January 2023

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Knowing the salary potential of a career can help you decide whether it is the right path for you. The average salary for chartered accountants can vary depending on many factors, including your specialisation or your level of education. If you want to become a chartered accountant, it is helpful to learn about the salary potential for this field and closely related professions. In this article, we explain how much do chartered accountants make and how their salaries can vary.

How Much Do Chartered Accountants Make?

The average base salary for chartered accountants in India is ₹8,00,399 per year. How much do chartered accountants make can vary according to many factors, including:

Mode of work

Most chartered accountants choose to either work for an established firm or set up their own practice. This choice can affect their salary potential. Typically, chartered accountants who start their own practise earn higher salaries long-term. However, accountants who work for established firms often enjoy higher levels of job security.

Level of skills

Another factor that influences how much chartered accountants make is the level of their skills, both technical and interpersonal. Generally, chartered accountants that are more skilled receive higher compensation and get promoted faster, resulting in them having a higher salary. Furthermore, chartered accountants who scored higher on their final exams often receive higher compensation than others when they start their careers.

Level of experience

The level of experience is another internal factor that affects the amount of money that chartered accountants can make. Businesses and individuals typically prefer to hire chartered accountants who have a higher level of experience because their previous clients can verify their job performance. Newly qualified chartered accountants might find it challenging in their first few years as they try to set up their name and become a reputed chartered accountant.

Specialisation

Chartered accountants can specialise in a variety of different fields, and each specialisation earns a different amount of money. While some chartered accountants choose not to specialise, most of these professionals select a niche and become experts in it so that they can earn higher amounts of money while advising only on one particular aspect of the job. Typically, specialised chartered accountants make more than general chartered accountants. Some common accounting specialties include:

Auditing
Budget management
Evaluation and management auditing
Financial reporting
Tax consulting
Tax compliance
Account management

The salary potential of each specialisation can vary depending on many factors. Typically, budget management accountants have higher salary potentials than other specialties.

What Does A Chartered Accountant Do?

Chartered accountants are responsible for analysing a business's financial records. This can help business owners and other stakeholders to gauge the financial position of the business, helping them determine how well the business is performing. Some typical responsibilities of chartered accountants include:

Preparing the books of accounting

Each business has its own procedures for preparing and maintaining their accounts, and chartered accountants are responsible for this process. They ensure that each transaction of the business is entered into the books of accounts properly. They also track all regulatory disclosure requirements of the business. In this way, they help investors and other stakeholders stay informed on the company's financial position.

Auditing the accounts prepared by other entities

To meet regulatory requirements, it is important for companies to have their books of accounts audited by an independent third party. This serves several purposes, including correcting data errors and misrepresentations. Therefore, a complete audit has to be carried out by an independent auditor at the end of every accounting period. At many companies, chartered accountants complete these audits. They are responsible for ensuring accuracy in the financial records and making sure that all the information being presented is verifiable.

Assisting with tax procedures

Chartered accountants who specialise in tax law can also assist companies with their taxes. There are several disclosure requirements that companies require to comply with, and it is the job of chartered accountants to ensure that they do this in a timely manner so that the companies can avoid fees. Chartered accountants often recommend measures that companies and individuals can use to reduce the amount of taxes that they pay. By identifying strategies that can enable companies to reduce taxation, chartered accountants can help companies increase their profits.

Completing valuations

If a company is planning to get acquired or enter into a major transaction, an independent body usually values the shares and assets of the company so that they can be revalued on the company books before the sale goes through. This is to ensure that all the gains and losses before the sale are only accrued to the old owners and shareholders. Chartered accountants can complete this valuation. It is their responsibility to look at the book value of the assets of the business and then prepare a final revaluation balance sheet.

Serving on the board of directors

Some companies also allow chartered accounts to serve on their board of directors. Chartered accountants can check all board decisions for their financial health. They also comment on and offer insights on new acquisition, expansion plans, compensation ideas, and even the general financial strategy of the firm. They can also offer specialised advice which enables boards to take the firm in the right direction.

What Do Similar Professions Make?

To predict your salary potential as a chartered accountant, it is helpful to learn about the salaries of closely related professions. Some related career paths include:

1. Accountant

National average salary: ₹19,180 per month

Primary duties: Accountants are financial professionals who help companies manage their financial records. They can also help companies create financial plans. Often, accountants work internally for one company, but they can also work on a freelance or contract basis.

2. Auditor

National average salary: ₹40,696 per month

Primary duties: Auditors are accounting professionals who review the books of accounts prepared by the company at the end of every financial period. They work to identify and correct data errors and misrepresentations. They also help their companies stay in compliance with financial regulations.

3. Cost accountant

National average salary: ₹28,049 per month

Primary duties: Cost accountants are responsible for helping companies make financial decisions. Their job duties include allocating costs to specific drivers and analysing financial statements. They can also help their companies create budgets and monitor their spending, helping them improve their financial position.

4. Financial planner

National average salary: ₹28,776 per month

Primary duties: Financial planners are responsible for creating plans to help their clients reach their financial goals. They analyse their clients' financial positions and needs. They also use their knowledge and experience to help their clients make financial decisions. Financial planners often work for banks or investment works, but they can also open their own practices.

5. Bookkeeper

National average salary: ₹18,086 per month

Primary duties: Bookkeepers are financial professionals who maintain their organisations' general ledgers. They track all of a business's transactions, including both costs and income. They also manage financial statements and other records. Sometimes, bookkeepers are also referred to as bookkeeping clerks.

6. Financial analyst

National average salary: ₹35,879 per month

Primary duties: Financial analysts are responsible for analysing companies to help their clients make smart investments. They do this by conducting research on market conditions and stock performance. Financial analysts can work for banks, insurance firms and other companies. These professionals can also work on a contract or freelance basis and work with multiple different clients.

7. Credit manager

National average salary: ₹30,032 per month

Primary duties: Credit managers are responsible for overseeing an organisation's credit department. Typically, they work for banks or other financial institutions. Credit managers analyse credit scores, risk levels and other factors to determine whether an individual is trustworthy enough to be granted credit. This helps an organisation choose the right customers and clients.

8. Budget analyst

National average salary: ₹51,392 per month

Primary duties: Budget analysts are financial professionals who help organisations create budgets. They also track expenses to help their companies stay within their budget. Often, budget analysts also prepare reports to present to other members of the organisation, helping stakeholders stay informed about the financial position of the business. Budget analysts can work for many types of organisations, including businesses and government agencies.

Salary figures reflect data listed on Indeed Salaries at time of writing. Salaries may vary depending on the hiring organisation and a candidate's experience, academic background and location.