How to grow CA Practice with Specialisation

Written By PracticeGuru dated: 25th September, 2021

4 Min Read

We will discuss today how you can grow your practice super fast and earn handsome profits with very low stress if you apply this concept of specialisation given by Adam Smith 200 years back.

Excited to know what these concepts are? Let's get into the detailed discussion right away.

You all chartered accountants studied economics in your college and CA foundation and you would recollect studying the industrial revolution of 18th century very clearly.

One of the major intellectual leaders of this period was the economist and management guru Adam Smith. Adam Smith had given the concept of Division of labour, in other words, specialisation. The division of labor means that a employee will specialize in performing only one task in larger series of tasks, which will result in the creation of product or service.

Point is this concept is so powerful that it can be used even today and in future and luckily in a CA firm too.

The idea of specialization of labor had several important outcomes. Firstly, specialization drastically reduced the cost of goods and services. Secondly, it drastically reduced the need for training. Thirdly, Instead of learning every aspect of a task, employees needed to learn one portion of it.

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Now let's see Why is the division of labour more efficient and how it will help you to get more work done fast and more profits. If you want to know what hurdle you will face and how to overcome it, pl watch the video till end as we have discussed it at the end of the video.

Let's come to the first part.

1. One needs less training as he only has to master a small number of tasks.

Similarly in CA firm, instead of learning every law under the sun, if you will focus on one stream, you need not learn every law and every change in it, day in day out. It's kind of impossible to do. In India today there are changes in law every day. You can see that especially in GST. Even if you will try to learn it, you cannot cover it all and cannot be expert of every subject and then you tend to earn less.

2. It is easier and faster to use one particular tool and do one job.

Similarly in CA office, you need to be expert of only one portal. For example if you are in GST practice, you focus only on GST portal and changes in it. You need not worry about what Infosys is doing with income tax portal. Keeping of updates of changes in all government portals is cumbersome and you may miss ceratin new changes and that may affect quality of your work delivery and may result in delays.

3. No time is wasted with a worker dropping a tool and then picking up another in a factory.

Similarly in a CA firm, you need not worry about different softwares, their updates, system requirements and different supporting softwares like em Signer and java versions. It's all mess nowadays with different portals having different Technical requirements. Many a Times it's a big headache for CAs.

4. One can gain loyalty and a sense of achievement from their branch of production.

In case if CA, Once you are master of one subject you will be known as an expert of that area like we have Sudhir Halakhandi sir or Bimal Jain sir. They are very well known for GST. Similarly you will have a big name in the market and that will create a brand for you and work will flow to you automatically. People will remember you instantly when they face issues in that particular area.

5. Workers can concentrate on those jobs which best suit to their skills and temperament.

Every CA has different skill sets which can be best utilised in certain stream of practice. Like, not all CAs can handle department work or not all CAs can handle big corporate culture. CAs should choose field as per their strengths. It is better to capitalise on your strong points rather trying to polish your weak areas.

But there are also some shortcomings of this idea of specialisation. Before moving to problems of concept of specialisation which you may face and how to solve it , friends if you have a different opinion or point of view, mention it in comments box so that we can discuss it further.

Following are potential problems of division of labour -

If one is highly specialised, then the job can become very boring and repetitive.

This can lead to low morale.

If one loses the motivation to concentrate and do a good job, mistakes may creep in as he get bored.

Similar thing can happen in CA firm too. but Specialisation saves lot of time so taking break to enjoy will also reduce boredom And refresh the mind and you can again work with full force.

Second issus is assembly line in a factory could grind to a halt if there is a blockage in one particular area.

Similarly in CA firms, one area of practice may be affected once there are technology changes or government policies changes. But what are the chances of it happening ? Very low. Here to solve this problem, you may choose 2 areas of practice like CA may decide he will specialise in GST and Income Tax but not bank audits and other kind of audits. So even if government brings changes in IT, practice is not affected drastically, he has GST to support him.

Comment and tell us which new topics you would like us to discuss in details.

We recommend you to read our other blogs too for growing your firm practice.

Take care and keep growing.

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