Running a CA firm successfully entails multiple recurring costs on a daily and monthly basis. Meeting these costs in itself is a challenge. Read on to know the day to day costs of running a CA firm and the ways to finance them.
Rent for office
Office rent forms one of the most essential portions of the monthly expenses of a CA firm. The rent depends on the area of operations. For instance, if you rent an office in Mumbai for 30-35 people, you may need to shell out Rs.5 lakh or more every month.
Most CAs, during their formative years of practice, prefer renting out an office space rather than buying one.
Salaries of employees
To boost productivity of your firm, you need experienced and qualified employees. Depending on the experience, the salary of a qualified and talented resource working with a CA firm can be upwards of Rs. 40,000 per month.
You also need interns who can assist the more experienced resources with basic paperwork and other tasks related to audit and taxation. The combined salary of 2-3 qualified staff members and interns can start from Rs. 2-3 lakh per month.
Electricity and other bills
Electricity bills, office supplies including files, papers, ink, etc., along with telephone and internet expenses constitute a significant chunk of your monthly budget.
You may also need to pay maintenance charges for housekeeping and security among others.
Cybersecurity and software costs
Robust cybersecurity is of utmost importance in a CA firm. The financial services sector is an easy and obvious target for cybercriminals and the implications of a cyber-attack go beyond financial losses. It can severely dent your reputation in the market, overcoming which can be difficult. Depending on the scale of deployment, maintenance cost of a robust cyber solution system could run into a few lakhs of rupees.
At the same time, it is important to use genuine and upgraded software to boost productivity. The common software used in a CA firm are Tally, CA Office, Tax Power, etc. The upfront cost of installing the above software for a couple of desktops can easily cost upwards of Rs.1 lakh. Annual upgradation cost can range from Rs.6,000 to Rs.8,000.
Arranging for finances
While you can meet the above costs with the revenues generated, there could be instances when you may need external financing. In such a scenario, a customised Bajaj Finserv Business Loan for Chartered Accountants can give you the required funds.
Offering a loan amount up to Rs.35 lakh, with a flexible repayment tenor ranging from 12-60 months, this collateral-free loan comes with a unique Flexi Loan facility. It allows you to withdraw funds as and when required from the approved loan limit with interest being charged only on the amount utilised. This lowers your monthly EMIs, thereby aiding in easy and affordable management of your finances. You can also pre-pay when you have a surplus at no additional cost.
With pre-approved offer from Bajaj Finserv on this CA loan, availing finance is quick and convenient. Get money in your bank account with 1-step verification. Just share a few basic details to know your pre-approved offer.
Disclaimer: The above article is an advertorial post.
CAclubindia
