No Due Date Extension of Tax compliance is the new norm that CAs need to start living with due to the latest trend. With No Due Date Extension for various Tax compliance, most of us as CA get disappointed. However, No Due Date Extension is a blessing for CAs if taken good advantage of by properly utilizing slack period time.
Most of the time, CAs asking for extensions is inefficient on the part of the clients and not the team of Chartered Accountants. If the Chartered Accountant Firm is inefficient, how can they file so many returns on the last date?!
If we, as CAs, introspect the entire situation, it’s not website glitches or late release of forms that cause us to ask for a Due Date Extension. But the problem is inherent. And that is the late submission of records by clients to us. After taking so much heat on behalf of clients, what in return would a CA get? The lower level of compensation for services and delayed payment of fees.
The due date extension is a loss-making deal for Chartered Accountants.
With a Due Date Extension, Chartered Accountant Firm will end up spending more time for the same fees on compliance. Moreover, you need to postpone your schedule for future opportunities, which might bring more revenue to you as a CA. With timely disposal of compliance services, CAs can diversify their Practice beyond compliance and add up to their top line.
One of the other trends I observed due to late fees among CA practitioners is reliance on working capital loans. We all might have seen aggressive marketing by NBFCs to give Professional loans to CAs. Why would CAs need such a huge loan and pay interest for working capital?
What would CAs do in the slack period to achieve 10x growth in Income?
No, Not the Stock Market Trading. Stock Market Trading might be gainful in the short term. But it doesn’t add value to your professional Practice in the long term. Instead, it would create stress due to roller coaster rides.
The best area of Practice to develop is getting overseas clients for the same services you are providing to Indian clients. For example, a CA can start with basic services like bookkeeping and consulting. As we only need basic knowledge like GAAP which is the same for each country.
Moreover, the peak season for bookkeeping in overseas markets like the USA is in the first quarter of the calendar year. Due to timely Indian compliance season with no due date extension, one can provide services to overseas clients.
Lastly, Overseas clients pay adequate compensation in US dollars for the services compared to local clients. Needless to say, overseas clients pay the fees on time. The fees, in most cases, are on an hourly basis rather than an assignment basis. The main advantage is you are compensated regardless of glitches or other factors that delay the task completion.
CA’s skills are actually deployed in such projects because most of the tasks involve the latest accounting software with automation due to business setups like SaaS or eCommerce with big data. Also, the Accounting software integrates with many other tools for business activities.
Where to get Overseas Clients?
Now, the big question is WHERE TO GET CLIENTS? I understand your concern and recorded an online webinar where I discussed it in detail and also many myths and FAQs revolving around Outsourcing Practice. Visit https://www.smartcapractice.com/webinar33269112 to watch a 37-minute FREE online webinar on “How to Start Outsourcing Practice within 90 Days!! Even if you are starting from scratch with No Experience!!”
Also, do read my other blog articles on various topics at https://www.smartcafirms.com/ca-firms-blog/.
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