The Institute of Singapore Chartered Accountants (ISCA) launched a landmark strategy paper today, laying out a practical roadmap to help Singapore's small and medium-sized accounting practices thrive in the future.
The plan is developed by ISCA’s Strengthening SMP Taskforce, as the paper highlights how the sector is growing, but also how the rise of tiny firms is making competition fiercer and attracting talent harder.
According to a press release, of the 761 Accounting Entities in Singapore, nearly all (98%) are SMPs with 100 or fewer staff, and most (70%) are micro practices with 10 staff or less. ISCA concedes that many SMPs today face mounting pressures such as operating in isolation, facing tough competition, struggling to find talent, and keeping up with fast-changing technology.
ISCA outlines key moves to help SMPs succeed:
- Work together, not alone: Encourage firms to join forces, share resources, and tackle staff shortages and boost efficiency through shared services.
- Build trust and visibility: Introduce a digital badge system so firms can show off their strengths and achievements, making it easier for businesses and talent to spot quality providers.
- Embrace technology: Pilot new tech solutions to make work faster and smarter, and attract the next generation of accountants.
- Go global: Help SMPs reach overseas markets through Professional Services Centres, opening doors for cross-border business, creating demand for Singapore professional services sector.
- Grow new talent: Launch programmes with universities and partners to attract graduates, offering clear career paths and development opportunities.
If these are put into action, ISCA says SMPs will be better equipped to weather financial challenges, adopt new technologies, attract and keep talented people, and boost Singapore’s reputation as a hub for professional services.
Further, the paper calls for a fresh look at firm ownership rules and new ways for SMPs to team up, including leveraging shared services for manpower and digital tools, without compromising quality or standards. It also advocates the creation of a digital badge system to recognise firm credibility and raise the visibility of SMPs within Singapore’s professional services landscape.
