'It is doing good to you and the client': FM to CAs on bringing tech to account keeping

Union Finance Minister Nirmala Sitharaman said that the introduction of technology in account keeping has made the job of chartered accountants easier and has streamlined the system, while addressing a gathering at The Institute of Chartered Accountants of India, Bangalore. 

Sitharaman highlighted the efforts of accountants to keep the books balanced and stable during COVID-19 disruptions and related moratoriums paid to companies during the pandemic, sovereign guarantee loans etc.   

Shedding light on the role of technology and the ease it brings in doing business, Sitharaman said, "When prefilled forms come from the board, the CBDT, you breathe a sense of relief and your client also says, Oh my God, yes, I did forget this one, yes, it has to be included. Or he says no, no, this is not mine, please go back and check it out. So there is a lot of trust coming in in this whole exercise where the government trusts taxpayers, wants to take them on board...".

The finance minister also joked that chartered accountants would want to "chop her neck" over introduction of technology in the accounting system. "My God, your profession would want to be chopping my neck off. I didn't mind because I can understand," she added amid laughter.

"These kind of technology-driven trust enriching steps which are being taken by the government, you as a professional realise that technology is doing good to you and the client," she added.

The Union minister said that competency in technology-driven method keeping of accounts is now becoming more essential as it gives the CAs an advantage. "You can't be laid back to say no, I am keeping the books balance. Somebody will look at the account. It is being tailored for every individual to file his return on his own and for small businesses. In fact, I remember the first year of my becoming finance ministry, part of the finance ministry. There was thorough hatred. My God, your profession would want to be chopping my neck off," she said.

Sitharaman said that the government wants the small companies to be free to do their bookkeeping as the technology is there to help them. "The government was to give the message that we believe in you for your tax returns, you don't need to be certifying. Chartered accountants need not be certifying your accounts. It made their life simple. It wasn't to deny anybody their professional earning. It does bring in a lot of sense of ease for a very small business," she said, adding "So much of it is all now being done by technology. Of course, it can't be for medium-sized or large companies."

The finance minister also highlighted the need to interact with small businesses and ease their fear of getting on to the formal system. "Because the normal fear is once I come there I'll have to pay tax. Its not just for paying tax, you may end up not paying tax at all even after coming on to the formal. You're coming on because you can reap the benefit of this open big world into which a lot of people are coming on board. Look what the digital payments have done. People didn't fear if I get in there, I may end up paying tax. No. Why? Because they knew the transaction ease, the speed and the access to newer markets are all doing good for his business," she said. "That is the fear which has to go out of peoples minds because the benefit that you reap once you come on to the formal system is far more than what you can account for now."