Scope of CA in Pakistan has established its worth in a most demanding way. Every organization big or small needs accountancy services to calculate the actual cost or profit. Chartered accountant is a person who directly connects with top management of a company. He or she is a person who manages expenses which occur on daily basis. Chartered accountant presents the transaction flow in a special arrangement in front of management.
Often we see a term like management accounting. Let us clear one thing when you become a qualified chartered accountant then you can manage the financial department of any business. However, if you want to know the details of management accounting then here you go.
Scope of Management Accounting
The following will explain the scope of Management Accounting, the Functions and Objectives of Management Accounting, the implementation of Accounting, and the Fundamental Differences between Management Accounting and Financial Accounting.
Two main branches we would discuss here that come under the scope of accountancy. These are:
- Management accounting
- Financial accounting
These two branches will help you to under that scope of ca in Pakistan in a better way.
How can we understand Management Accounting in business transactions?
Management accounting is an accounting system with a main purpose to present financial statements for the benefits of internal company parties, such as financial managers, production managers, marketing managers and other internal parties.
This information or data is very useful as a guideline for making policies for the future based on historical data from financial statements.
How to get financial information in an organized way?
Accounting is an activity that produces financial information for management as a basis for making decisions in carrying out management functions. And management accounting is financial information generated which is utilized by the entity’s internal users.
Management accounting is the “process of identifying, measuring, accumulating, analyzing, compiling, interpreting, and communicating information used by management to plan, evaluate and control within an entity and to ensure the appropriate and accountable use of these resources. Management accounting also includes the preparation of reports for financial activities. These reports are used for non-management groups such as shareholders, creditors, regulatory bodies and tax authorities” (Chartered Institute of Management Accountants – CIMA)
If you go deeper then, you would see that accounting is the process of identifying, measuring, accumulating, analyzing, preparing, interpreting, and communicating that information which helps each executives to meet organizational goals. Differences in Management Accounting and Financial Accounting
Financial Accounting information system
As stated above that Management Accounting is intended for the internal interests of the company while the Financial Accounting information system is aimed at external interests of the company, such as creditors, the government, shareholders, investors, and other external parties who are directly interested in the company’s financial statement data.
Broadly speaking, the information system regarding Financial Accounting presents data in broad outline while Management Accounting is more detailed and detailed. Reports are classified by department, marketing area, and product.
The main function, purpose and scope of management accounting is to present important data or information based on historical data in order to carry out management processes that include planning, organizing, directing, controlling, and evaluating performance.
Financial Managers need information related to corporate financial activities such as working capital funding, the cost of funds to the amount of working capital needed by the company, the rate of return on investment, the rate of return on capital, financial ratios and others.
Production Manager requires data information about the details of the cost of goods sold or cost of production such as total production costs, costs per unit of product, direct labor costs, and other overhead costs that directly play a role in the production process.
Scope of CA in Pakistan in careers
After doing CA in Pakistan you will have several career options that are given below.
- Chief accountant
- Real estate finance officer
- Risk monitors
- Financial controllers
- Financial consultants in organization
- Chartered accountants
- Branch manager in accounts departments
- Senior lecturers in finance department
- Financial analyzers in small and big companies
Major subjects in CA:
The students who are looking for information regarding scope of CA in Pakistan would also be interests to know the main subjects which are taught at CA level.
Let’s have a look on these subjects.
- Commercial accounting
- Managerial accounting
- Financial accounting
- Banking and finance
- Industrial accounting
- Micro finance
- Taxation system
Eligibility criteria for CA in Pakistan
Basically a student is required to have at least 50% marks in his or her HSS exam. If the study module is as full time scheme. Students of A level are required to gain at least 2 passes and if a student after bachelor degree wants to get admission in CA then minimum marks would be 45 %.
Under trainee scheme a student needs to have 45% marks in graduation or in post-graduation with minimum 16 years.