Nilesh Deshmukh

Nilesh Deshmukh

Pune based Nilesh U. Deshmukh is a partner in a C.A firm, singer, cricketer and a voracious reader. In a free-wheeling interview with A. Radhakrishnan, he tells why he loves to plan the financials for clients and how important it is for this profession to grow.

What made you choose C.A as career?

Economics, Book keeping and Accounts were my favourite subjects in college. I scored well in accounts in my 12th class, and decided to follow my uncle, a successful C.A. professional.

I love to plan the financials. I update myself regularly with laws relating to finance and advise clients on their tax matters. As one who detests routine and monotonous work, I find C.A practice a challenge and continuous learning.

What is your area of specialisation and what are your strengths?

For a decade, I handled Income Tax and Audit. However, from 2017 onwards, I switched to GST and Statutory Audits as a partner in my proprietary firm. I update myself learning new topics, experimenting with new concepts and implementing it for my clients.

Has C.A profession come of age in India?

India is an emerging economy and good chartered accountants are in demand. Unfortunately, many don’t enter into practice. The previous generation is ageing and the new generation is interested in making quick money. The gestation period for setting up a good practice is very long and the younger generation is impatient. At present C.As earn a tidy amount at an early age but their job is challenging. People see C.As as service providers. Playing the roles of a professional as well as services provider to the satisfaction of the client is getting difficult. Government compliances too are increasing which demands not only fair and reasonable information, but correct data. It can be extremely stressful at times.

What are the common misconceptions about your profession?

A major misconception is C.As fudge figures and help people to evade taxes. C.As can only suggest remedies beneficial to the taxpayer within the framework of law.

People should remember that we are professionals committed not only to the government, but also to our Institute which has a code of ethics. Most C.As religiously follow these ethics. Genuine mistakes can happen sometimes as afterall, C.As are human.

What qualities should an ideal C.A possess?

Chartered Accountants are basically financial doctors and responsible professionals. They constantly need to upgrade, de-learn and re-learn on a regular basis.

However, they need to have a practical approach towards the changing business scenario and meeting the expectations of the clients as well as the government. They should diversify by collaborations. They should not be mere compliance partners to the clients, but focus more on business requirements and forecasting. They should adopt new technologies, irrespective of their age and financial capacity.

Normally mid-sized and small sized firms lack in maintaining full proof documentation of audits, advices, and mail communication trails. The C.As opinion here is very important. I feel every professional should have a professional indemnity insurance cover, though most C.As are not serious about this.

How do you ensure giving accurate financial advice to clients?

Actually, there is no thumb rule for any financial advice. It always depends upon some variables like, age, financial requirements, risk bearing capacity, change in laws and the needs of business.

The compliances under Companies Act, Income Tax Act, FEMA, GST Act or various other laws need to be closely monitored and corrected wherever necessary. Just as for watering a tree one has to know the type planted, C.As too should understand the requirement of a client, his/her business needs, the geographical and political scenario etc. and advice accordingly.

What are the common mistakes in accounting?  How does one identify fraudulent entries?

Normally in India, business accounting is income tax-centric. However, accounting should not be seen as an activity done for any government body, but for an individual to know his/her net worth. Financial health planning and assessment are equally important for financial growth of the client.

After winning the Nashik Cricket Tournament Trophy

It is commonly believed that accounting is done for compliance only. As auditors, we normally focus on the substance of the transaction. However, the propriety aspect and intention of the transactions should be found out at the time of audit, which can reveal discrepancies or inaccuracies, if any.

The bottom line is a C.A should help his client in legal tax planning and not tax evasion.  

What is the biggest challenge Accounting is facing these days?

As I mentioned earlier, very few chartered accountants enter into practice. Secondly, a sizeable capital investment is required for resources and infrastructure for a C.A to start on his own. Further, it is difficult for the freshly minted C.As to compete with established firms.

So they work with small clients, with inexperienced staff, which hampers the overall quality of work.

What accounting ethics should a C.A practice?

A C.A. should work objectively without getting involved emotionally in a client’s business. If there are loopholes that benefit the client and cannot be legally challenged, then he should be given the benefit of doubt within the purview of law. But C.As should avoid any activity or decisions which are unethical. This profession is a noble profession and C.As should strive to keep its dignity intact and act with utmost responsibility.

What’s the worth of a Chartered Accountant for a Business?

As the financial doctor of the business, I feel, the C.A should be involved in every business decision-making of his client and guide him/her throughout. The time that the CA invests in giving

Nilesh at a blood donation camp

consultancy over phone or across the table should be compensated suitably.

What are your hobbies and interests?

I am deeply interested in music. Apart from being the first C.A from my Tehsil, I have completed four Gandharva Mahavidyalaya Music Examinations i.e. Madhyama and also won prizes in singing competitions.
I also love cricket and have received the Best Batsman award in tournaments conducted by the Pune Branch of our CA Institute.

Nilesh with daughter Pauravee participating in a marathon

I love to read books on various topics like mythology, autobiographies, novels and ideological books. I am also on the Advisory Board  of a Charitable Institute, working in the field of environment— managing e-waste, green consultancy and composting.

What advice would you give someone wanting to break into this career?

With the Indian economy on an upswing there are many new opportunities for students who can take guidance from learned faculties and people in our profession. They can study international taxation, various share market products, foreign collaborations, etc.

A student should not merely focus on passing C.A exam which itself is tough. They should avoid pursuing dummy articleships. Instead, they should train under good, established C.As for a flourishing career.