What a Chartered Accountant does for a business: audits, tax returns, accounting and virtual CFO

A Chartered Accountant (CA) helps a business keep proper accounts, get them audited, file income tax and GST returns correctly, and plan its finances. Two jobs can legally be done only by a CA in practice: the statutory audit of a company and the tax audit under income tax law. Everything else — bookkeeping, returns, tax advice, virtual CFO work — can be done by a CA or by other competent people, but many businesses choose a CA for the expertise.

This post explains each service in plain language so you know what to expect and what to ask. It is an educational explainer only; the author of this site is not a CA and does not offer CA services. For the difference between a CA and a Company Secretary, read CA or CS: who does what for your company?

What does a CA do for a business, in one table?

Service	Who needs it	Must it be a CA?
Accounting and bookkeeping	Every business	No
Statutory audit	Every company, every year; LLPs above thresholds	Yes, a CA in practice
Income tax return filing	Every company, LLP and firm, every year	No, but common
Tax audit	Businesses and professionals above turnover thresholds	Yes, a CA in practice
GST returns and annual reconciliation	GST-registered businesses	No
Tax planning and corporate tax advisory	Growing businesses	No, but specialist knowledge helps
Virtual CFO	Startups and SMEs without a full-time finance head	No

What is included in accounting and bookkeeping services by a CA?

Bookkeeping means recording every sale, purchase, expense, receipt and payment. Accounting turns those records into the profit and loss account and balance sheet. Under the Companies Act, 2013, every company must keep books of account on an accrual basis and double-entry system at its registered office, and preserve them for eight years.

Accounting and bookkeeping services by a CA firm typically cover monthly entries, bank reconciliations, GST and TDS working, payroll entries and year-end finalisation. Many small companies use a junior accountant or software for daily entries and a CA for review and year-end work. Whatever the arrangement, good books make every other service — audit, tax returns, funding — faster and cheaper.

What is a statutory audit and why is it compulsory?

A statutory audit is an independent examination of a company's financial statements to report whether they give a true and fair view. Every company in India — including a one-person or loss-making company — must have its accounts audited every year, whatever its turnover. Only a CA in practice or a CA firm can be appointed.

• The board appoints the first auditor within 30 days of incorporation.
• At the first AGM, shareholders appoint an auditor generally for a term of five years, and the company informs the ROC in Form ADT-1.
• The audited financial statements are approved at the AGM and filed with the ROC in Form AOC-4.

Statutory audit services are different from internal audit (an optional review of internal processes) and from tax audit (below). An LLP needs a statutory audit only if its turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh.

What is a tax audit, and who needs one?

A tax audit is an audit of accounts for income tax purposes, in which the CA reports a long list of prescribed details to the tax department. Under the Income-tax Act, 2025, which applies from 1 April 2026, the provision is section 63 (section 44AB under the old 1961 Act). Broadly:

• A business needs a tax audit if its turnover exceeds ₹1 crore, or ₹10 crore where cash receipts and cash payments are each no more than 5% of the totals.
• A professional needs one if gross receipts exceed ₹50 lakh.
• Some taxpayers who declare income below the presumptive rates also need one.

For the tax year 2026-27 onwards, the report is filed in a new consolidated Form 26; audits for 2025-26 still use the old Forms 3CA/3CB and 3CD. Tax audit services by a CA must be completed before the return is filed, and missing the audit attracts a penalty. Due dates are notified by the Central Board of Direct Taxes and are sometimes extended, so check the income tax portal each year.

Is a GST audit by a Chartered Accountant still required?

No, not in the old sense. Until 2021, businesses with aggregate turnover above ₹2 crore had to get their GST accounts audited and their reconciliation statement (Form GSTR-9C) certified by a CA or Cost Accountant. The Finance Act, 2021 removed that requirement from 1 August 2021. Now, taxpayers with aggregate turnover above ₹5 crore file GSTR-9C on a self-certified basis along with the annual return GSTR-9 (CBIC).

So when you hear "GST audit Chartered Accountant", it usually means one of three things: a CA helping prepare GSTR-9 and GSTR-9C; a departmental audit by GST officers under section 65; or a special audit under section 66, where the department itself nominates a CA or Cost Accountant. A business cannot be required to buy a "GST audit certificate" for its annual return.

Who should file your income tax return?

Every company must file an income tax return every year, even if it had no business or made a loss. LLPs and firms must file too. Income tax return filing by a CA is common because company returns require audited figures, depreciation schedules, tax computations and many disclosures. Nothing in law stops a company from filing through any competent person, but a mistake can lead to notices, so experience matters.

What do tax planning and corporate tax advisory involve?

Tax planning means arranging affairs lawfully to pay the right tax — for example, choosing between the regular and the concessional company tax rate, structuring founder pay as salary or dividend, timing capital purchases, or claiming eligible deductions. Corporate tax advisory goes further: tax on funding rounds, ESOPs, cross-border payments, transfer pricing and restructuring.

There is no official ranking of the "best CA firm for tax planning". A useful test is experience with businesses of your size and sector, clear written advice, and willingness to explain the risk in each option. Be cautious of any advice that depends on bogus bills, cash or round-tripping; that is tax evasion, not planning.

What are virtual CFO services in India?

A CFO (Chief Financial Officer) manages a company's finances. A virtual CFO is a part-time, usually remote, finance head — often a CA or a CA firm — for startups and SMEs that cannot yet afford a full-time CFO. "Virtual CFO" is a market term, not a regulated title. Typical work includes monthly management reports (MIS), budgets and cash-flow forecasts, investor reporting, fundraising support, and overseeing the accountants and compliance calendar.

CA consultation for startups often starts here: founders want help with a financial model, a cap table, or getting ready for due diligence. Ask exactly which deliverables you will get each month and who will prepare them.

What drives CA charges for ITR filing and other work?

There is no government-fixed fee for CA services; fees are agreed between you and the professional. This site does not quote prices, but these factors usually decide the amount:

• Type of taxpayer and return — an individual's return is simpler than a company's.
• Volume and condition of records — clean, reconciled books cost less to work on.
• Whether audits are needed — statutory and tax audits involve far more work and professional liability.
• Complexity — capital gains, foreign income, multiple GST Registrations, notices or past defaults.
• Scope and frequency — a one-time filing versus a year-round retainer.

Ask for a written scope listing what is included, what is extra, and the deliverables, and remember that a company's statutory auditor's remuneration is fixed by the shareholders in general meeting or in the manner they decide. The Life After Registration lessons list the filings a CA typically handles across the year.

Key takeaways

• Only a CA in practice can do a company's statutory audit and a tax audit; other services are open to any competent person.
• Every company needs a statutory audit every year, whatever its turnover.
• Tax audit is now under section 63 of the Income-tax Act, 2025, with ₹1 crore and ₹10 crore business thresholds.
• Mandatory GST audit by a CA ended in August 2021; GSTR-9C is now self-certified above ₹5 crore turnover.
• CA fees are not fixed by law; they depend on scope, records and complexity, so agree the scope in writing.