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What is CA? Understanding the Role of a Chartered Accountant
28-01-2026
You must have often heard terms like CA, accountant, or CPA, and it is natural if you think they all mean the same thing. While these roles may sound similar, each serves a distinct purpose.
If you are a student of commerce/finance or planning a career in these areas, you should understand the difference between accountant and chartered accountant. This clarity helps you understand why certain roles carry higher responsibility, authority, and recognition in the professional world.
You should also be clear about the topic: accounting vs accountancy. While both deal with financial information, they also have distinct characteristics.
This blog helps you find answers to many important questions, such as:
What is the work of CA?
What is the difference between CA and CPA?
What is the difference between chartered accountant and accountant?
You should, however, get started by understanding what the CA profession is all about.
What is CA?
The term CA refers to a finance professional who has completed the chartered accountancy course conducted by the Institute of Chartered Accountants of India (ICAI). You should know that, as a CA, you have many important financial responsibilities. These responsibilities include checking company accounts, managing taxes, reviewing audits, and providing financial advice to businesses.
You should note that in India, the ICAI is the only authority that regulates this profession, which means you can use the CA title only after registering as an ICAI member. The prestigious CA course is known for its tough exams, with a very selective pass rate. This is one of the most important reasons why CAs are highly valued across companies and industries.
Role of a CA
Once you step into the role of a Chartered Accountant, your responsibilities go far beyond routine number work. Your work as a CA may include:
- Auditing financial statements to ensure accuracy and transparency
- Filing income tax returns for individuals and businesses
- Preparing balance sheets and profit and loss statements
- Checking compliance with financial laws and regulatory norms
- Offering financial and investment advice to clients
- Guiding businesses on risk management, growth and profitability
- Handling forensic accounting cases when financial irregularities arise
- Examining budgets, payroll, investments, and overall finances
Overall, a CA plays a critical role in guiding financial health, decision-making, and long-term business stability.
Now that you’ve understood the role of a CA, you should be clear about accounting vs accountancy. The next section discusses the same, followed by the difference between CA and CPA.
Difference Between Accounting and Accountancy
It is essential for you to know that accounting and accountancy are often used interchangeably today, but they play different roles in the financial world. However, you can understand the difference between accounting and accountancy by considering accountancy as a discipline, a subject of study which explains how to maintain books of accounts, how to summarise, and how to communicate the accounting information, whereas accounting is the actual work of maintaining accounts according to the rules laid down by accountancy.
CA vs CPA - Understanding the Difference Between CA and CPA
As a commerce student, you might wonder whether CA and CPA are just two names for the same role. The real difference becomes clear when you look at where each qualification is recognised and how professionals practise across countries. The table below provides clarity on CPA vs CA, highlighting the main differences between the two.
| Criteria | Chartered Accountant (CA) | Certified Public Accountant (CPA) |
| Geographical recognition | Widely recognised in India | Primarily recognised in the United States |
| Professional standing | Highly respected globally, but not automatically equivalent to a CPA in the US | Considered the standard accounting qualification in the US |
| Licensing requirements | Governed by national professional bodies in respective countries | Requires state-wise licensing and specific US exams |
| Core responsibilities | Handles auditing, taxation, financial reporting, and advisory roles | Focuses on auditing, taxation, financial reporting, and compliance |
| Cross-border practice | Needs to clear additional exams to practise as a CPA in the US | Mostly US-focused, though valued by multinational companies |
Accountant Vs Chartered Accountant - What is the Difference?
You must be aware that the work responsibilities of an accountant and a chartered accountant differ from each other. While understanding the topic of accountant vs chartered accountant, you should begin by knowing the basic difference between the two.
The table below helps you know about the other important differences between an accountant and a CA.
| Criteria | Chartered Accountant (CA) | Accountant |
| Qualifications | CA exams and articleship | Degree or diploma in Accounting or Finance |
| Certification | CA certification issued by ICAI (Institute of Chartered Accountants of India) | Any of the following
|
| Training & Exams | Professional training with specialised exams | Basic or general accounting knowledge |
| Scope of Work | Advanced tasks such as audits, financial strategy, and compliance | Basic tasks like bookkeeping and basic tax work |
| Career Opportunities | High-level positions in finance, auditing, and management | Internal finance roles in small to mid-sized organisations |
| Decision-Making | Actively involved in strategic business decisions | Provides financial data, but is not typically involved in strategic planning |
| Legal Knowledge | Deep understanding of tax laws, corporate laws, and financial regulations | Basic knowledge of compliance with reporting standards |
Conclusion
This blog helped you understand: What is the work of CA? It also discussed the difference between CA and CPA, and accountant and chartered accountant. Understanding what a CA is and how this role differs from an accountant gives you clarity about your career choices in finance and commerce. If you aim to become a CA or an accountant, starting with a strong commerce programme at JAIN (Deemed-to-be University) can give you the right academic base and practical understanding. Explore the programme details today and apply for admission.
FAQs
Q1: What is a Chartered Accountant?
A1: A Chartered Accountant, or a CA, is a trained finance professional who completes relevant education and practical training, and clears professional exams in areas such as accountancy, auditing, and taxation.
Q2: What does a CA do?
A2: A CA handles a wide range of financial responsibilities. These include checking financial records, preparing budgets, managing taxes, and offering advice on business finances. Many CAs also work as strategic planners or management consultants.
Q3: What is a salary of CA?
A3: The average salary of a CA in India is INR 7 LPA to INR 12 LPA. The salary range varies significantly based on experience, skills and location as well.
Q4: Is CA a powerful job?
A4: Yes, CA is a powerful job. It carries strong responsibility and influence. CAs often guide important financial decisions, ensure legal compliance, and support corporate governance. Almost every business and industry values the skills and expertise of a seasoned CA.
Q5: Is CPA better than CA?
A5: None of these is better than the other. None of these is better than the other. The choice of the better option between CPA and CA depends on where you want to work. CPAs and CAs are governed by different bodies and have different geographic scopes. A CPA is regulated by the American Institute of Certified Public Accountants and is generally valid in the United States, while CAs are governed by different institutes depending on the country, such as the Institute of Chartered Accountants of India for Indian CAs.
Q6: What is the difference between accounting and accountancy?
A6: Accounting focuses on doing the work, such as recording transactions and preparing financial statements. Accountancy explains how and why these processes are carried out by setting out the rules, principles, and concepts behind them. In short, accountancy is the theory, and accounting is the practical work applied in real business situations.