Last year, Finance Minister Lawrence Wong highlighted that the number of people pursuing accounting degrees has dropped by over 10 per cent over the past five years, and fewer accounting graduates go on to take up careers in the profession. Is the accounting profession losing its appeal?
Historically, accountants have played a crucial role in business and the economy. In ancient civilisation, scribes were entrusted with the task of meticulously noting down financial transactions, managing tax records and overseeing trade affairs.
Today’s accountants play a multifaceted role, wielding their expertise not only in financial management but also using their insights to drive innovation in new products and services. They are instrumental in job creation and contribute significantly to the economic prosperity of society.
In fact, they can be heroes too.
Harry Markopolos, a financial analyst-turned-fraud investigator, uncovered fraudster Bernie Madoff’s US$65 billion investment Ponzi scheme after a persistent and meticulous investigation. Despite having his suspicions dismissed initially, Markopolos’ hard work paid off when Madoff confessed to running the largest known financial fraud in history in 2008, at the height of the global financial crisis.
The investigator’s unwavering dedication to exposing the truth brought justice to Madoff’s victims and highlighted the importance of financial oversight.
It is time we highlight how rewarding and prestigious an accounting career can be.
Help lead the charge towards net zero
Last year, the Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation announced plans to mandate climate-related reporting for both listed and large non-listed companies in Singapore, in line with the recently published International Sustainability Standards Board (ISSB) disclosure standards.
With the growing mandate for Environment, Society, and Governance (ESG) reporting requirements, today’s finance and accounting professionals go beyond simply measuring and reporting the impact of climate change, environmental regulation, supply chain pressure and rising energy costs.
Chartered Accountants are guiding their businesses to meet their net zero goals and sustainability reporting. These professionals are in the drivers’ seats of their ESG and sustainability teams in integrating climate risks into financial management and business planning, helping to design their organisations’ sustainable business strategies.
Strategic advisors leveraging technology
With the availability of AI-powered tools that automate tax filing, write tax memos, and synthesise thousands of manual journal entries in a day to identify potential fraud, accountants are increasingly freed up to take on more strategic roles.
The new role of accountants will lean towards consulting and financial control, as they help management implement the right strategies and invest in the right technologies. Altogether, these will pave a smoother path towards innovative growth while maintaining high standards of financial discipline.
The future also spells a rise in hybrid and synergistic roles in this sector. More roles will focus on ‘tech-enablement’, such as training machine-learning models, or on data governance. As advisory and consultancy skills weave into play, accountants may also find themselves acting as brokers between technical experts and clients.
Ethical guardians of businesses
The discovery of $2.2 billion in laundered assets in Singapore serves as a stark reminder of the need for robust ethical standards and stronger safeguards against financial fraud.
Accountants serve as ethical guardians within businesses. Their commitment to objectivity and adherence to professional codes ensures transparency and prevents fraudulent activities. They are also the first line of defence against financial risks, meticulously preparing financial statements, assessing internal controls, and analysing potential pitfalls. By staying updated on regulations and collaborating with other professionals, they help navigate volatile financial landscapes.
Chartered accountants are also gaining more trust than ever. The 2023 trust report from Edelman and Chartered Accountants Worldwide (CAW) found that 78% of businesses see accountants as key partners in navigating economic challenges. Businesses urge accountants to expand their roles beyond finance, offering guidance on resilience, ethics, data integrity, and navigating technologies like AI and ESG matters.
Tomorrow’s accountant – a coveted role
Accountants remain core to the success of every organisation. It is time to shed accounting’s “boring” or “monotonous” image of yesterday. Instead, let’s highlight how the profession has evolved, now playing a critical role in navigating complex challenges for their organisations’ sustainable, successful and responsible future.
