MSMEs in India are one of the driving forces that are leading the Indian economy towards global stage. MSMEs contribute to around 30% of GDP and employing over 110 million people in India. The continuous growth of MSME sector positions it as backbone of the Indian economy.
But many still struggle to scale because of lack of robust financial system and limited financial literacy. The foundation of profitable business strategy is finance status. If the accounts and financial system are not up to the mark, it is impossible to run business optimally.
This is where the role of Chartered accountant comes into play. Their responsibilities range from financial advice and tax management to Regulatory compliance and strategic advisory.
Experts from CA firms can bring their insightful approach to enhancing operations and ensuring growth of the company.
Without regular bookkeeping and forecasting, many MSMEs are facing hindrance in scaling their businesses. According to SCORE, “82% of small business fail due to poor cash flow management”.
Cash flow management in business is the process of monitoring, analysing and optimizing the inflow and outflow of cash in a business. Cash flow management helps to manage working capital effectively.
Through accurate financial reporting, budgeting and forecasting, they help business plan for future, minimize risks and improve operational efficiency, contributing to sustainable growth.
Due to poor record keeping and financial reporting, small business struggle to meet the standards of financial institutions. They are less likely to receive funding and this results in missed opportunities for scaling.
A CA’s expertise in preparing financial statements and projections helps the company to improve creditworthiness, paving a way to get funding easily. According to SIDBI report 2023, MSMEs working with CAs are 2x more likely to get loans.
Tax management is a crucial aspect of running a business, but it comes with a set of challenges especially in a country like India, having complex tax structure and dynamic regulatory environment. Limited knowledge of these laws often leads to inefficient tax planning, missed deductions, resulting in penalties or higher tax liabilities
Chartered Accountants are well-versed in the intricacies of Tax laws, regulations and financial strategies. They stay up-to-date with changes in tax laws, ensuring that your business remains compliant while maximizing available deductions.
Running a business comes with unique set of challenges. Due to lack of in-house expertise required to tackle complex business challenges from limited resources to fierce competition, SMEs often find themselves juggling multiple responsibilities with minimal support.
Beyond their traditional accounting roles, Chartered Accountants provide strategic insights and recommendations to identify market trends, cost saving opportunities and potential areas for reinvestment. By leveraging their advisory services, businesses can make informed decisions that lead to sustainable growth and profitability.
SMEs are exposed to risks all the time. Such risks can directly affect day-to-day operations, decrease revenue or increase expenses. Every business is subject to possible losses from unmanaged risks.
Chartered accountants take a proactive and systematic approach that involves identifying, assessing and mitigating potential risks to achieve business objectives effectively. For SMEs CAs act as a Risk navigator, safeguarding the organizational resilience.
MSMEs and a focus on their growth are critical for the long-term prosperity of India’s economy.
Chartered accountants play a vital role in unlocking the growth potential of MSMEs, enabling them to scale sustainably.
Empower your MSME with our team of experienced Chartered Accountants.
Below is a quick snapshot of the revised criteria as per the Union Budget 2025
Yes, a Chartered Accountant (CA) is usually required for company registration in India.
A Chartered Accountant is a person who have expertise in taxation, auditing, accounting etc., their expertise is crucial in growing the business without any financial hindrance.
A CA has knowledge of the tax law and regulations. Technically he/ she can advise you on ways to save taxes within the ambit of the law for which you may be charged a professional fee. Saving taxes, the right way is the preferred way.
CAs offer various services tailored to the unique needs of MSMEs like Taxation service, audit and assurance, cash flow management, risk management, business advisory.
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