CPAs in Big 4 in India: What Exactly They Do?

For several certified public accountants (CPA), the Big 4 accounting firms in India represent the dream. Deloitte, Klynveld Peat Marwick Goerdeler (KPMG), PricewaterhouseCoopers (PwC), and Ernst and Young (EY) are giants in the business ecosystem, spanning across geographies and boasting revenues in billions. They often engage with the Fortune 500 organizations, making them perfect workplaces for CPAs looking to flourish in finance and accounting.

So, what are the roles and responsibilities US CPAs perform in any Big 4 firm in India? In general, these accounting enterprises perform audits on many private and public businesses across continents. Additionally, they are the leading providers of taxation, consulting, transaction advisory, actuarial, and risk advisory services.

Let’s discuss them in detail.

CPAs in Big 4: Tax Filing and Compliance

Big 4 US CPAs prepare tax documents, file tax returns, and discover ways to minimize their companies’ and clients’ tax liability for the following year. They spend lots of hours checking out tax laws, processes, and tactics to provide clients with the best possible advice. Moreover, US CPAs help understand and adhere to tax evolutions. If any taxation norm changes, they elaborate on the impact of these changes on the Big 4 firm.

Besides, USA CPAs in the Big 4 keep up to speed with the Indian taxation policies. Hence, they are comprehensively familiar with how their firms can legally curtail their tax liabilities. First, USA CPAs collect the necessary documentation, including investment income statements, pay stubs, and other financial documents. Then, they devise tax-effective strategies (within the perimeter of law) such as using government incentives, allowances, expenses, offsetting losses, or changing how the C-suite draws the income from the firm.  

While every Big 4 firm in India wants to enjoy as many savings as they are eligible for, they also do not want to make shady deductions that could trigger an audit. Luckily, CPAs USA help decide when the firm should – or should not – take specific deductions.

CPAs in Big 4: Auditing

All Big 4 companies have to undergo statutory audits – wherein internal CPAs USA are a must-have asset. Such audits verify that everything is ticking over smoothly. CPAs in the Big 4 perform auditing in multiple ways to accurately determine the integrity of their firm’s financial health. They assemble these financial statements, especially those required to be announced yearly, in accordance with the Institute of Chartered Accountants of India (ICAI).

Among the various types of audits, CPAs USA in Big 4 accounting firms often execute financial and compliance audits.

Financial audits ascertain if any Big 4 firm’s financial statements resonate with the results of their financial operations. They ensure that the firm’s financial health is in line with the ICAI standards. On the flip side, compliance audits check if the Big 4 company has operated according to the regulations and laws that might substantially affect its financial statements.

CPAs in Big 4: Mergers & Acquisitions

Mergers and acquisitions (M&A) are one of the fastest ways to grow your business or enter a new market. When a Big 4 firm in India encounters considerable operational or structural changes – buying a business or selling/closing a particular branch – CPAs USA help immensely regarding tax implications.

For instance, if a Big 4 firm in India is acquiring a business, their certified public accountants analyze its financial records, authenticate its assets, and implement their due diligence. Likewise, if the firm is selling a specific portion of its business, the CPAs offer them a gist of the fair market value of that portion, and create financial reports accordingly.

CPAs in Big 4: Business Advisory

CPAs in India boast heaps of knowledge that comes from helping clients from all business aspects. Moreover, an experienced CPA is aware of most of the challenges that any company might face. Often, CPAs bring financial acumen, industry experience, accounting tech and process proficiency, and an understanding of the client to offer tailored suggestions.

In the Indian branch of any Big 4 firm, CPAs provide various business advisory services like management planning, tech implementation and maintenance, cash flow projection, profitability consulting, and industry benchmarking, among others. Therefore, they provide an unbiased soundboard for innovations and ideas, red-flag potential risks, and underscore opportunities.