{"id":11475,"date":"2024-02-24T10:24:40","date_gmt":"2024-02-24T04:54:40","guid":{"rendered":"https:\/\/www.startupfino.com\/blogs\/?p=11475"},"modified":"2024-02-24T10:24:42","modified_gmt":"2024-02-24T04:54:42","slug":"why-is-it-important-to-have-a-ca-while-setting-up-a-company-startup","status":"publish","type":"post","link":"https:\/\/www.startupfino.com\/blogs\/why-is-it-important-to-have-a-ca-while-setting-up-a-company-startup\/","title":{"rendered":"Why Is It Important To Have a CA While Setting Up A Company\/Startup?"},"content":{"rendered":"\n

Finances of any organization are very important to be kept safe and up to date in order to make the company stable in the market. It is not a child play to make your company financially sound among the various competitors in the market. It requires a lot of work and an understanding of finance.. That is why it is important to have a CA for your startup or company. Many times startups think that they can do all these things on their own which drags them into heavy fines and penalties, because they lack the knowledge that is required to maintain all these things. Current blog will give a better understanding regarding why it is important to have a CA in a company or startup, hence keep reading the current blog.\u00a0<\/p>\n\n\n\n

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Who is a Chartered Accountant? <\/h2>\n\n\n\n

A CA, also known as a chartered Accountant is a person who manages all financial aspects of a company or startup. He looks into all the finances of the company or startups like compliances, accounting and bookkeeping<\/a><\/strong>, budget preparation, sales, profit, loss etc. Hence, to start a company or a startup, the makers hire CA\u2019s. Some companies prefer hiring them after it is established, however, some hire them before the establishments. A CA must not be confused with an Accountant because both of them are completely different professionals. CA can handle the work of the accountant but an accountant cannot replace the CA.\u00a0<\/p>\n\n\n\n

Institute of Chartered Accountants of India <\/h2>\n\n\n\n

Chartered Accountants are responsible for handling all the finances of the company. Everything related to money is looked after by the CA. They must handle each and everything properly. They have to mandatorily work according to the ICAI. ICAI holds the exams of CA\u2019s. Those who pass this exam are officially called Chartered Accountants. The Chartered Accountants have to follow all rules and regulations of the ICAI. If anyone goes against these rules, then they can be punished. Hence, it is the duty of the CA to maintain finances of the company along with being careful of not breaking the rules of the ICAI.<\/p>\n\n\n\n

Accountant v\/s Chartered Accountants <\/h2>\n\n\n\n

Accountants are way different from that of CA\u2019s. CA\u2019s have more knowledge as compared to that of Accountants. Any person who has done courses on Accounts can become an Accountant. However, to become a CA, one has to pass an examination conducted by the ICAI. This is considered as one of the most difficult exams of all. No one else can understand financial issues better than CA\u2019s. It is very beneficial to hire a CA at the very beginning of a company to avoid financial crises or losses later on. Hence, CA\u2019s are very essential.   <\/p>\n\n\n\n

Why CA is needed for a Company or Startup? <\/h2>\n\n\n\n

Because of the following reasons it is important to have a CA in a startup or a company: <\/p>\n\n\n\n