Shivanand Pandit
The tragic death of young chartered accountant Anna Sebastian Perayil in Pune in July 2024 has sparked a national debate, highlighting a range of perspectives on the issue. In a poignant letter addressed to the head of the accounting firm, Anna's mother firmly attributes her daughter's untimely passing to the immense pressure of her job. Anna was an employee of Ernst and Young (EY). The Maharashtra Government has revealed that the EY accounting firm in Pune lacked registration under the Shops and Establishments Act, which specifies a maximum of nine working hours per day and 48 hours per week for adults.
In the detailed world of auditing, finding work-life balance is as complex as the financial statements auditors review. Responsible for ensuring the accuracy and compliance of financial records, auditors often face heavy workloads, especially during fiscal year-end and tax season. This cyclical pressure, along with tight deadlines and the high stakes of financial reporting, can lead to long hours and significant stress, impacting personal time and overall well-being.
The state of work-life balance for auditors is not uniform; it varies significantly based on firm culture, industry, and individual efficiency. While some auditors successfully navigate a satisfying equilibrium between their professional duties and personal lives, others find themselves caught in an unending cycle of audits, struggling to carve out time for themselves. Achieving this balance often depends on one's ability to set boundaries, the level of support from their workplace, and effective stress and workload management strategies.
Dilemma of Deadlines
Finance departments and their auditors are in a constant race against time to meet deadlines. Major laws in India – such as the Companies Act, Income Tax Act, GST Act, SEBI (LODR) regulations, and the Provident Fund Act – impose strict deadlines for filing forms and making payments. Failing to meet these deadlines can harm careers and damage corporate reputations, along with incurring penalties. As a result, companies pressure their audit firms to comply with these timelines at any cost. Partners in audit firms relay this urgency to their managers, who, in turn, pass it down to their teams.
The entire supply chain is focused solely on meeting deadlines, regardless of the hours required to achieve them. For some firms, longer hours are beneficial as they can charge clients additional fees. Alongside these strict deadlines, audit firms in India have taken on another significant responsibility over the past decade: defending the audits they conduct.Regulators in India have penalized auditors for shortcomings in their quality and compliance procedures. This scrutiny has intensified due to a troubling global trend of accounting scandals – ranging from Enron in 2002 to Satyam in 2009 and Evergrande in 2023 – prompting regulators to review auditors' work. The pressure to meet deadlines while ensuring defensible audit quality adds to the strain on audit teams. Defending an audit necessitates the collection and maintenance of a vast number of documents within a tight timeframe.
As a potential solution, some have suggested that Indian laws could allow for more flexible deadlines, perhaps incorporating a grace period. While this idea is appealing, it's important to note that in India, if September 30 is the deadline, many individuals tend to wait until that very day to complete their tasks – there's an almost thrilling aspect to this last-minute rush. If a grace period were introduced, likely, they would simply push their completion to the end of that extended timeframe.
Another challenge facing many audit firms in India is a shortage of quality resources. Given the events in the auditing landscape over the past decade, the profession has lost its appeal as a career choice. Many professionals are choosing consulting roles that offer better pay with less pressure and minimal risk. This shortage of skilled resources compels audit firms to overburden their existing talent, resulting in increased work pressure.
Hard work rewards, but at what cost?
Hard work, as the saying goes, pays off, and this is especially true for chartered accountants. Major accounting firms, including the Big Four, provide attractive compensation packages for young chartered accountants. The average entry-level salary for qualified chartered accountants varies from ₹6 lakh to ₹20 lakh per annum, with the potential for steady increases in just a few years.As chartered accountantsgain experience and demonstrate their capabilities, they often see their salaries soar, with many reaching impressive packages of over ₹40 lakh annually within a relatively short timeframe. However, this financial reward comes at a price. The demanding nature of the profession often requires long hours, intense work pressure, and a continuous commitment to meeting tight deadlines.
The high expectations placed on chartered accountantscan lead to significant stress, impacting work-life balance and personal well-being. While the financial incentives are attractive, aspiring chartered accountantsmust weigh these rewards against the challenges of the profession, including the relentless pursuit of excellence and the constant need for professional development. In the end, while hard work can indeed lead to lucrative opportunities, it often requires sacrifices in other areas of life.
Many young chartered accountantsand their families have voiced their struggles with burnout on social media, seeking support not only from their firms but also from the Institute of Chartered Accountants of India. Two years ago, a significant number of students protested and approached the courts to demand changes in examination policies, advocating for greater transparency in the process. Moreover, there's a glaring disparity in salaries and stipends within the profession. After enduring three years of intense work for minimal pay, many young professionals become accustomed to this excessive workload, normalizing the stress that accompanies it. This situation is further exacerbated by the fact that those perpetuating these high-pressure environments are often chartered accountantsthemselves, who have experienced similar strains in their careers.
Work-Life Balance in 2024 and Beyond
Of late, the concept of work-life balance for auditors has undergone a significant transformation. It is no longer simply about dividing the day into specific work hours and personal time. Instead, it involves creating a seamless integration of career and lifestyle, allowing auditors to achieve professional fulfilment while prioritizing their health and overall happiness. For auditors, this new paradigm means having the flexibility to navigate the demanding peak seasons of their profession with ease, while also ensuring they carve out essential downtime to recharge and engage fully in life beyond the confines of ledgers and tax codes.
This evolution in understanding work-life balance now encompasses both the mental and physical well-being of auditors. There is a growing recognition that a healthy mind and body are crucial for sustained professional performance. As the pressures of the profession increase, organizations are beginning to realize that the well-being of their employees directly impacts productivity, morale, and job satisfaction.
The rise of remote and hybrid work arrangements has significantly contributed to this shift. Auditors are increasingly finding innovative ways to fulfil their responsibilities without being tethered to traditional office environments. By leveraging technology, such as cloud-based accounting software, digital collaboration tools, and communication platforms, auditors can streamline their processes and enhance efficiency. This flexibility allows them to maintain high standards of accuracy and compliance while enjoying the freedom to work from locations that best fit their personal and professional needs.
As we look towards the future, achieving work-life balance as an auditor in 2024 means embracing tools and practices that facilitate a harmonious coexistence between professional duties and personal aspirations. This involves fostering a workplace culture that values flexibility and encouraging auditors to create schedules that align with their peak productivity times while accommodating their family commitments and personal interests.
Moreover, organizations must prioritize initiatives that promote mental health and overall well-being. By implementing support systems, offering professional development opportunities, and encouraging adequate downtime, firms can help prevent burnout and enhance employee satisfaction. When auditors feel empowered to pursue their interests and maintain strong connections with family and friends, they contribute to a more engaged and resilient workforce.
Ultimately, the future of work-life balance in the auditing profession hinges on a holistic approach that integrates professional excellence with personal well-being. By adopting this comprehensive perspective, auditors can cultivate a work environment that not only supports their career ambitions but also enriches their personal lives. This fosters a sense of fulfilment and harmony, enabling them to thrive in an ever-evolving work landscape.
Moving Forward
While our hearts go out to Anna's family in light of her tragic passing, we firmly believe that meaningful change must originate from within the community. A little empathy can make a significant difference. Although work pressure, tight deadlines, and relentless hustle are ingrained in the profession, organizations and managers need to recognize that just because they endured such challenges doesn't make them acceptable to the next generation. It is essential to foster a culture of support and understanding, prioritizing the well-being of all professionals within the field.It is hoped that the tragic episode involving Anna Sebastian will prompt employers to critically evaluate their employee policies. This unfortunate incident has drawn attention to the pressing need for change within the workplace, particularly in high-pressure professions like auditing and accounting.
Professional organizations such as the Institute of Chartered Accountants of India, the National Association of Software and Service Companies, the Confederation of Indian Industry, and the Federation of Indian Chambers of Commerce and Industry are vital in facilitating this transformation. They should actively encourage their members to evaluate and improve employee practices within their organizations. By raising awareness and fostering discussions on employee well-being, these institutions can contribute to creating a more supportive work environment.
Furthermore, regulatory bodies should mandate that organizations provide transparent data regarding their employee policies, including aspects such as work hours, support systems, and mental health resources. This transparency can catalyse change, allowing stakeholders to hold companies accountable for their practices.
When all parties involved take responsibility – employers, professional organizations, and regulatory bodies alike – the potential for meaningful change increases significantly. A collective commitment to prioritizing employee well-being can lead to healthier work environments, where professionals are not only valued for their contributions but also supported in their overall welfare. This shift could ultimately result in a more sustainable and resilient workforce, benefiting both employees and organizations in the long run.
The writer is a tax specialist, financial adviser, author, guest faculty and public
speaker based in Goa. He can be reached
at panditgoa@gmail.com or 9822983420
