Power of Professional Unity

Power of Professional Unity

Presented by

CA Vishal D. Langalia

[email protected]


Thanks to all CAS Members & others for providing wonderful suggestions to

strengthen our association and to create brand image for professionals.

Keep sending more suggestions in different areas and be an active part of our unity.


The power of Professional unity, when practiced diligently, can be a very powerful tool. It is not oriented to any one religion, it is accepted universally and practiced by

almost all faiths on the planets. It is through unity that you can ultimately find

your inner being.


Power of Unity will address the imbalance that exits in all of us and will guide us to come to

terms with the things we need to do.

Eventually, becoming better at understanding who we are, what we are and in particular

why we are here. This in turn will bring us to who we can be.


If your life has to mean something, it must start today.

Every one of us is bound to be world-class champion in particular field of endeavour. We are duty bound to find the field.

But doing the same things everyday cannot deliver new results. To change the results you are getting, you need to change what you are doing. You must transform the way you live your life.

Changing the way you live means changing how think. Changing how you think means changing what you have come to believe or accept about life. This is very hard. So hard that even when you so desperately want to change, you prefer to hang on to the misery because it is familiar and it is comfortable.


Your life is not yoursuntil you risk it.

There are basically two kinds of people: lions and sheep. Ninty percent of people are sheep. Because we like to follow the norm. The norm being our comfort zone.

The comfort zone is where we get to drown slowly and luxuriate in it as we do.

Change require risk. But how much are we willing to risk? The funny thing is, the things we are so scared of risking are like chips in a casino, useless unless they are risked.


Ways of Earning

We all know ways of earning and cost-reduction as we all are known to be keen in the areas to our clients.

However, believe me friends, so much of opportunity are waiting for us and give us an indication to select please………if we are united.

I like to through lights on few of them:


Man-power Pooling• Since last number of years, we all are facing:

– Shortage of Man-power for particular unplanned work– Excess of Man-power for particular period of time

• We face high level of hassles in getting experienced Man-power related to unique work at the same time other professionals are with the situation of Excess Man-power.

• We all can earn money by sharing our excess staff with other professionals and at the same time other professional can manage his unplanned work hassle-free.


Books, Magazine, Stationary etc.

• We all professional are incurring expenses towards books, Magazine, stationary etc. Further 80% of the total cost is towards for the purchase of the same books that all other CAs are purchasing.

• We will be offered with more discounts by purchasing that in bulk.


Operating System for PC• Most of us are using pirated operating system for PC in the

offices. Accordingly we are not supported by the company.

• Even, most of us, are not in pipeline to switch to License version as the cost of the same is relatively higher.

• In the field of globalization, day not far, when we bound to use license versions only.

• We all can either switch over to other free operating system like linex (with all support) or we can bargain for great discount with current operating system provider.


Softwares

• Most of us using different accounting, income tax, sales tax, service tax and other softwares developed by different companies.

• Most of the times, the companies do not care for services need to be provided to professionals as we are not united.

• Further, as edge of your database in the software are getting older, services are getting poorer.

• By power of unity, we can bargain for the new installation and for renewal charges as well with effective service ratio.


Submission of Income Tax returns / Sales Tax returns

• We professionals are sending our staff to Income Tax Department / Sales Tax Department or to NSDL Centers for submission of Income tax / Sales Tax returns or for application of PAN Card / TDS returns etc. and accordingly incurring expenses towards utilization of Man-power and conveyance etc.

• If we all outsource the activity to any single Agency (Courier), the facility can be available to us at very economical rate (Agency work includes collection of documents at office, Submission to Department, Delivery to office)

• Please note that submission to Department outside Ahmedabad (i.e. ITO Mehasana, Nadiad, Himatnagar, Baroda, Gandhinagar, Modasa, etc.) can also be asked as per need with effective rates.

• Again the same Agency (courier) will pick all other courier from our office at discounted rates.


Trainee – Staff

• To reduce the cost of Man-power for routine work, we all can have association with the Educational Institute for Workshop / Project of Three-four months at CA office before a student starts carrier and after completion of study.

• The trainee can be made available to us at very economical rate.

• This will also increase our Brand image to normal class of the society.


ECS

Have we ever think about anytime that we can also collect our fees by ECS (Electronic Clearing System)….?

Again that to for normal quantum of clients with power of unity

Just think, on a particular day, say on 1st April of every year you get most of your clients income-tax fees are getting credited to your bank account. (It may be charged in advance also)


PAN Database

Income tax department is going to stop “PAN Verification” facility on 20th July, 2008. i.e. we are unable to see Name of PAN holder on the base of PAN Card Number.

However, as informed by department, the facility is available on enrollment with an annual fees of Rs. 12,000/- only.


Reminder Software for clients

Most often our staff members are used to remind the clients for various reasons like due dates, documents requirements, fees collections, etc by telephone or through letter.

We can reduce the cost of communication by installing reminder software at client place.


AMC of Computers

More of us are having AMC (Annual Maintenance Contract) of Computers.

However, they are not providing in-time services to us, even after charging reasonable amount for AMC or per Visit.

By power of unity, we can:1. ask for in-time high quality services2. get heavy discount for the services


Salary structure for Employee

We can structurised Salary level for skilled, semi-skilled and other employees in our organization.

It will help us to retain our staff and to control our overheads.


Dr. Cr.Particulars Rs. Particulars Rs.

Service Tax Exps 132004 Professional Fees 1200000Salary Exps 283000Stationery Exps 34674Comunication Exp. 46754Conveyance Exps 38545Computer Maintenances Exps 9600Electricity Exp. 17587Staff Refreshment Exp. 4576Insurance Exps 28688Books & Magazine Exp. 4588Membership Fees 3200Seminar Exp. 2000Depreciation Exps 80000

Profit 514784

1200000 1200000

Net Profit Ratio 42.9

Profit & LOSS Account for the period


Service Tax Exps NilSalary Exps 15%Stationery Exps 20%Comunication Exp. 20%Conveyance Exps 5%Computer Maintenances Exps 40%Electricity Exp. NilStaff Refreshment Exp. NilInsurance Exps 20%Books & Magazine Exp. 20%Membership Fees NilSeminar Exp. NilDepreciation Exps Nil

By Power of Unity, we assume following % reduction in the cost


Dr. Cr.Particulars Rs. Particulars Rs.

Service Tax Exps 132004 Professional Fees 1200000Salary Exps 240550Stationery Exps 27739Comunication Exp. 37403Conveyance Exps 36618Computer Maintenances Exps 5760Electricity Exp. 17587Staff Refreshment Exp. 4576Insurance Exps 22950Books & Magazine Exp. 3670Membership Fees 3200Seminar Exp. 2000Depreciation Exps 80000

Profit 585943

1200000 1200000

Net Profit Ratio 48.83

Increment in Net Profit Ratio By 5.93

Increment in Net Profit By 71159

Resultant Profit and Loss account for the Period


Revenue increment in other areas

Yet we have thrown some lights on revenue earnings areas by cost reductions only.

However, there are lot of other areas, where we can earn more with better services to clients just with Power of Unity.

e.g. Insurance, Mutual Funds, Equity markets, Loans etc.


Examples

• Term insurance tie-up of ICAI with LIC for the benefits of the members

• Bulk purchases and retail sales by MALLs

• Tie-up of Veritas with United India Insurance Company.

• Tie-up of Centurion Bank of Punjab with Aviva Life Insurance Company

• And more…………………………..


Thank You

I believe now, on completion of the session, you will walk away refreshed, reorganized

and redirected. At worst, you will walk with, at the very least, more thoughts to

ponder upon.

Waiting for your valuable suggestions.

Email: [email protected]

Documents

Power of Professional Unity