Monday, July 12, 2010

How to become an Accountant in Sri Lanka?

There are many ways to be an Accountant. But in Sri Lanka, qualified accountant means being a member of the Institute of Chartered Accountants of Sri Lanka (ICASL).

What are the ways to get the membership in ICASL?
1. By doing all the exams conducted by ICASL.
2. By doing other Accountancy exams, obtained exemptions and completing final level of ICASL exams.

What is Institute of Chartered Accountants of Sri Lanka (ICASL)?
You should first go to their official site (link is below), read all the available information and get a basic idea on what it is and how they operate.

Or else if you go to one of these centers or call these numbers, you can get information on how to enroll as a student.

Eligibility for the registration
There are so many options to get eligible for the registration. For details refer this link.

Medium of the examinations
Examinations are held in Sinhala,Tamil and English mediums in the first two stages, but after that examinations will hold in English medium only. But that’s not a problem. English proficiency of the students is not tested. Students should not afraid to take the decision to become an accountant solely based on the language. If you do not know any English, all you can do is go to an English class while you are doing the first two stages, learn Basic English. Just try to read an English paper everyday by going to a library. Just watch English news everyday. Keep a dictionary. Try to find the meaning of couple of words a day. Try to write something in English, everyday. Your English will be good enough to write to the examination after a year or so. I've seen many students who came to Foundation classes from very rural areas who did not know a single English word, later became members passing all the exams and today no one would believe they did not know any English word six years back. Trust me guys, it works. English is not something to be scared. It just comes with the use and practice. All you need is proper planning and commitment to learn it.

Financial Assistance/Scholarships
Financial aid is available for the students who have financial difficulties who have performed well in the advanced level examination. You can contact ICASL regarding this. For the rest of the students, this is the most cost efficient method of becoming an accountant. If you follow any other streams such as CIMA,ACCA, compared to ICASL, those exams are very high cost exams.

On the job training
You will have to join an approved training institution in order to be eligible to sit for the certificate level and strategic level examinations.

Please read through the practical training guide.

This requirement gives an opportunity for the students to earn money while they study and absorb a really quality experience to be a professional accountant. Therefore selecting a company to work is a very challenging task which needs to be done after a good analysis. If you read the link above, you would have already noticed that there is a list of companies approved by the ICASL for the training requirement.

What type of an organization should be selected to work / training?
There are many factors to be considered in selecting a place to work/train.

There are two types of organizations, a student can select to be employed.
1. Organizations public Practice - Audit firms
2. Organizations Non public Practice - Commercial sector companies

Why you should select an audit firm to get training?
There are pros and cons of selecting an audit firm job as the first job for a future accountant. But my personal opinion is it’s always best to select an audit firm job for the first two years of the training.

Audit firms pay very lower salary (actually it is an allowance) ranging from Rs 5,000 to 10,000 to a student depending on the organization. Life is not very easy at it. You will have to travel from one company to another, you may have to work at different places on different dates, and you may have to work with different types of people whom you never met before. But trust me, still it’s worth the effort. Life may not be comfortable as in a normal office where you have a desk and a seat. But the experience you get from an audit firm will not get from anywhere.

Why I say, you should work at an external audit department of an audit firm? There are many reasons.

1. Usually a reputed audit firm has their clients in different fields such as banks, hotels, plantations, import, export, manufacturing, local trading, agricultural, live stock, BPO and many more. By the end of your training period you can cover at least one audit from each sector. Then you know, what are the specialties in each sector , how the accounting differs, how the business operates and many more information.

2. You can get an idea on start to end of the accounting process of a company as oppose to doing only a part in a department in a commercial sector company. Basically you get an overall idea about the business and accounting function of it.

3. You can get the experience of working for many big companies in the country, get to know people, strategies, how the systems work etc.

4. Since your work varies everyday you will not get bored by doing a routine job everyday.

5. Since you have to use many technical standards in performing your work in the audit, you get an up to date knowledge on the technical standards and any other developments in the accounting world.

6. You get enough leave (usually one month) for your ICASL exams leaving you enough time to study while getting paid.

Those can be categorized as the main advantages, but there is lot more.
But for the reasons I cannot write in a public forum, I would like to say, if you are a very sensitive girl who was bought up very protectively and who cannot bear the crookedness of life in Sri Lanka, you better not join an audit firm. Because apart from all the benefits, you may get frustrated on the field. You know you gotta be tough enough, when you are in a sector which you meet lot of people, and then there is a high chance that there are maniacs too. But if you feel you are smart enough to beat them, then please join an audit firm. :)

Why you should select a commercial sector company to get training?
1. They will pay you, more than an audit firm.
2. Its good for someone who plan to establish and specialize in a certain area. E.G Banks
3. Experience in commercial sector is different to the experience in audit sector. Other than the financial accounting work, a trainee gets to involve in many other functions such as Budgeting, management accounts, book keeping, planning etc.

Finally what I want to say is, as I mentioned in my previous article, you have to think seriously before you take this decision. Other than the primary things I mentioned here, there are lots more things you need to do. Once you enroll as a student, you can get to know those. There are many other methods of becoming Accountants. We hope to bring those details in our next articles. Until then enjoy!

If you need any more details or clarification, please feel free to write to us. We are ready to help.


Chani said...

Is it necessary to do ICASL or CIMA qualified to become professional accountant.only experience & degree in a management side, is not enough as in a audit firm like that..

Nishadee said...

Chani - A university degree is an academic qualification. CIMA, ICASL , ACCA etc are professioanl qualifications. There are advantages of obtaining professional qualifications along with a degree. For example, you cannot start an audit firm in Sri Lanka unless you are a chartered accountant.If you want to be an Accountant, its always good to do a professional exam as well. I did not get what you said on audit firms.

Navindra Senevirathne said...

True Nishadee, There is a big difference between academic and professional qualification. One thing to mention here just Chartered Accountant cannot become a practicing member unless he or she has practical experience in an Audit Firm.

Navindra Senevrathne

lakmali said...

i did maths for a/l s.i am expecting university entrance for physical it good to do icasl or cima?what is better icasl or cima?

Unknown said...

Have you practiced the CIMA 2015 syllabus and tested your skills on it? I already have done it with Practice Test Academy. You too can try.It's actually seems to be helpful.

AKON said...

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christopher said...

CIMA Certifications

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