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Compliance services 400% growth: Most in-demand service line at Bengaluru CA Firm

This CA firm doubled its revenue annually between 2022-2024 by tapping into startups, compliances. Learn their growth strategies for 2025 amid IPO boom and their talent acquisition strategies.

The Finance Story by The Finance Story
Published date: 3rd February, 2025
Last edited date: 6th February, 2025
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How to grow CA firm in 2025 says Bangalore based partner
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  • The world of CA practice is no longer what it was a decade ago, with the emergence of AI, GCCs and tighter regulations.
  • The Finance Story spoke with Guru Prasad, Co-Founder & Managing Partner of Guru & Jana.
  • Here are what strategies they are using to chart a growth path in 2025.

Tell us about your CA firm and growth in 2024.

Founded in 2003, Guru & Jana is a Bangalore-based CA firm with 700+ team members, specializing in Audit & Assurance, Consulting, Corporate Law, Foreign Exchange Management, Insolvency & Bankruptcy, and Taxation.

Between 2022 and 2024, we’ve experienced nearly 100% year-over-year growth—doubling revenue every year.

However, over the years, we have at least doubled = going from 20 to 40, 40 to 60, and 60 to 80. It’s been a great time for us.

In Bangalore, growth comes despite stability.

In-demand service lines that your CA Firm saw most revenue growth?

Explosive Growth in Compliance Services – 400% in a short time!

  • Here we take over a company’s entire compliance—GST, TDS, and other regulatory needs—while also managing dashboards and monthly MIS reports.
  • This service is primarily for smaller companies (50–100 employees).

Thanks to this,

  • Our team grew from 30 to 130 people.
  • Revenue, profits, and cash collections quadrupled.
  • In my 20-year career, I’ve never seen anything scale this fast!

Next Phase: We’re transitioning companies to a dashboard-driven approach to streamline processes for:

  • Payroll
  • MIS
  • Compliance

Compliance is becoming more complex & tech-driven. Smaller companies (₹20–30 lakh annual budget) struggle due to a lack of accountants and advisors.

Next, Shared services are highly profitable:

  • Sustainability services bring in ₹20 lakh per year.
  • Shared services can generate the same in just two months!

Liquidation Services – While we want our clients to thrive, liquidation services also benefit our firm. This space is growing fast, and we’re leading the way!

What kind of clients do you work with?

Most of our clients are companies that don’t take bank loans, don’t generate significant profits, don’t have much GST output, and, in many cases, don’t even have sales.

But they do have a lot of money – they’re all funded.

Funded startups – that’s our sweet spot. 

What’s your CA firm’s talent acquisition approach?

Talent is everything for us. However, we have noticed that pampering our employees doesn’t work.

How many pizza parties can you throw before engagement wanes?

Instead, we attract talent by challenging them.

We received nearly 500 resumes from article trainees this year, and we’re upfront about the expectations: “These two years will be tough, but we’ll shape you into a high-performing professional.”

Today second-year article trainees lead audits and handle valuations.

Even at the partner level, we bring in people who seek challenges. For example, we recently onboarded Sandesh from PwC. Coming from an MNC, he found the dynamic work at Guru & Jana refreshing.

Also read: This CA Firm Guru & Jana struggled for the first 10 years, now top firm in India with a team of 650+

How are your CA firms investing in technology?

The next two years will be pivotal in determining AI’s true role in accounting.

But, AI is both exciting and concerning.

AI challenges: We block three websites and 4,000 more surfaces.

Despite restricting laptops, our article clerks can still access AI tools through their mobile devices, creating significant cybersecurity vulnerabilities.

While AI can generate 400 case laws, true prudence still comes from human insight.

Investing in Technology: Five years ago, we allocated 1.5% of our turnover to technology. Today, it’s nearly 15%—our second-biggest cost after manpower.

My partner has spent four months developing an in-house AI solution for our firm, but it’s costly. We’re fully invested in tech, but our understanding is still evolving.

Future of GCC in India looks promising. What does this mean for CA firms?

GCCs create substantial opportunities for CA firms.

Why? Many multinational firms have conflicts of interest that prevent them from handling all GCC work, leaving a gap for independent firms like ours.

However, they also present a challenge. Many qualified professionals are moving to GCCs.

Interestingly, our firm has become a talent pipeline for GCCs.

A Bangalore-based firm started 5 years ago, and half of its 200 employees came from Guru & Jana. This strengthens our long-term relationships with both talent and corporate clients.

There were a record number of IPOs in 2024 in India. How do you plan to leverage this IPO boom?

Bangalore is a hotbed for IPOs; take Swiggy for example.

Even handling just 2 -3 IPOs can significantly boost our revenue.

Many larger MNC firms cannot take on certain IPO-related tasks because they are already advising these companies. If they’re handling valuation, they can’t do certifications; if they’re auditing the company, they can’t do the IPO work.

This opens up a strong market for us mid-sized firms.

While we haven’t had too many breaks yet, we are keen to secure strong opportunities in the IPO space.

How can CA firms attract startup clients in tier-2 cities?

Tier-2 and Tier-3 cities, like Mysore and Udupi, have untapped potential. Startups there need more than tax and advisory—they need sounding boards.

Many founders lack senior-level strategic conversations, and that’s where we step in.

To succeed, firms must operate in three key areas:

  1. Fundamentals: Handle accounting, payroll, GST, TDS, and professional tax. This is your core work – your bread and butter.
  2. Strategic growth: Engage with investors, represent the company in board meetings, manage data rooms, and identify funding opportunities. This is where you add strategic value.
  3. Advisory & guidance: Offer deeper insights that go beyond compliance—challenge decisions, question financial structures, and anticipate long-term risks. For example, if a startup is granting a 1% ESOP, ask why. Have other companies done the same? Will this indemnity clause create future risks?

The third bucket is crucial. It’s not about getting paid—it’s about responsibility.

Also read: India has exceptional CAs then why no Indian firm in the Big 4 league? Here is why, explains the founder of Guru & Jana, a 500+ member firm.

How do you plan to grow your CA firm in 2025?

For nearly 15 years, we had a policy of never touching listed companies. We are reconsidering this decision.

The Institute of Chartered Accountants of India (ICAI) is tightening proceedings.

The Disciplinary Committee (DC) is becoming stricter.

The Ministry of Corporate Affairs (MCA) is ramping up oversight.

We have – NFRA, peer reviews, QRB, FRRB—everything is getting tougher.

So, while many see the audit environment as risky, we see a blue ocean. It’s an untapped opportunity.

Government audits will also open new doors. For the next few years, this is where we plan to focus.

FAQs

What are the biggest challenges facing CA firms in India today?

CA firms in India face challenges such as stricter regulatory compliance from NFRA, talent retention in the face of GCC competition, adapting to AI and automation, and managing cybersecurity risks in a digital environment.

Discuss the impact of AI on accounting. 

AI is transforming accounting by automating routine tasks, enhancing data analysis, improving fraud detection, and increasing efficiency in audits.

However, it also raises concerns about cybersecurity and data privacy.

What are some high-demand accounting services?

CA firms can offer:

  • Advisory services
  • Sustainability consulting
  • IPO preparation and readiness
  • Forensic Accounting
  • Shared services
  • Virtual CFO offerings

They should also not ignore acquiring clients in tier 2 or tier 3 cities.

Offer specialized services, personalized client attention, flexible pricing, and focus on niche markets like startups, and compliance for smaller companies.

Why is private equity buying up accounting firms?

In India, we have already seen several companies taken over by PE firms.

PE firm are investing in accounting firms because they offer stable, recurring revenue, and strong growth potential through market consolidation.

Is private equity good for accounting firms?

For CA firms / CPA firms it is beneficial because at the end of the day, money talks. Latest technology can be purchased, infrastructure can be upgraded, and salaries can be more competitive.

Guru said he received several offers from PE firms in Canada but he declined the offers. So yes, Indian CA firms are receiving PE offers!

The Finance Story

The Finance Story

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