Revitalising the accountancy profession

The accountancy profession is at a pivotal crossroads as it grapples with significant challenges going forward, with technological advancements and shifting workforce dynamics in the driver's seat. As artificial intelligence (AI) increasingly permeates the financial landscape, job displacement concerns loom. Yet, rather than replacing accountants, AI redefines their roles, allowing them to focus on strategic decision-making and value creation.

This transformation necessitates a robust talent management strategy, emphasising reskilling and upskilling to ensure that finance teams can navigate the complexities of modern regulatory environments while maintaining high reporting standards.

As organisations adapt to these changes, they recognise the importance of flexible work arrangements, such as remote and hybrid models, to attract and retain talent. Career development initiatives, including coaching and tailored training programs, are becoming essential for fostering a supportive work culture.

Despite a 35% decline in certified accounting professionals in the Philippines, the demand for skilled finance professionals remains high, particularly in the burgeoning outsourcing sector.

Looking ahead, the integration of digital finance and a focus on work-life balance will be critical as the profession strives to align with evolving market demands and technological innovations.

Yvonne Chan, CFO and vice president of the Singapore Management University (SMU), shared her insights on the evolving landscape of the accountancy profession during an interview with FutureCFO. As the chair of the Institute of Singapore Chartered Accounts (ISCA) Salary and Career Review Taskforce committee, she is committed to addressing misconceptions about the field and promoting its long-term benefits. Below are key points from the discussion.

The Role of the CFO in Education

As SMU's CFO, Chan oversees the financial operations of a diverse institution comprising six schools and two colleges. "We develop our business into three portions: regular teaching, research, and, most significantly, adult learning," she explained. The university trains approximately 14,000 learners annually, focusing on executive education for C-suite professionals.

Chan views her role as more than just financial management; she collaborates on strategic planning to ensure that SMU remains competitive in the educational sector. "My role is to look at the finance but also to work internally on strategies for how we go to market," she said, highlighting the multifaceted nature of her responsibilities.

Addressing the talent shortage in accountancy

One of the primary challenges facing the accountancy sector is a declining interest among students. Chan pointed out, "In the last five years, we've seen a drop in the GPA scores of students entering the profession."

This decline is attributed to competition from the IT sector, which offers attractive salaries and a dynamic work environment. "While the IT industry is hiring aggressively, many young graduates are not considering accountancy because it seems less exciting," she noted.

Recognising this trend, Chan was prompted to chair a committee to reshape accountancy perceptions. "We want to tell younger kids that it's not as boring as they think; actually, it can be quite fun," she said. The initiative produced two reports, Snippet 1 and Snippet 2, aimed at educating students, parents, and teachers about the realities of a career in accountancy.

Insights from Snippet reports

In Snippet 1, the committee analysed data from ISCA's membership base, which comprises around 40,000 members. Chan revealed that "about 25% of our membership are in top leadership roles, including C-suite and board positions. "

The report debunks myths about the profession and demonstrates that career paths are diverse and rewarding. Chartered Accountants, for instance, are moving into innovative fields like sustainability and digital finance, with starting salaries exceeding S$0.5 million for top positions.

The report outlines various job roles and earning potentials, emphasising internal career progression. It aims to guide students, educators, and parents in understanding accountancy's career prospects and pathways.

"People often think that once you graduate, you must be an auditor, but that's simply not true," she emphasised.

Snippet 2 utilised government data from the Ministry of Manpower to illustrate salary trends in the accountancy field. The report emphasises the strong earning potential in accounting-related roles, particularly in sectors like finance and technology.

It notes that salaries for mid-career accountants are significantly higher than for younger professionals. It also underscores the importance of continuous learning, adaptability, and strategic skills in navigating the evolving accountancy landscape, encouraging students and professionals to align their passions with career choices for long-term success.

"Accounting-related roles are above the national median salary, with many positions experiencing a significant pay increase over time." Yvonne Chan

Specifically, she noted that salaries for mid-career accountants increase by 45% compared to 27% in other industries, reinforcing the long-term financial benefits of staying in the profession.

Professional development is essential.

Chan emphasised the need for aspiring accountants to invest in their technical skills during the first 15 years of their careers. "Get your technical skills strong because when your staff comes to you for help, you cannot say you don't know," she advised.

Networking and mentorship become crucial as one progresses, particularly for those reaching the CFO level, where many bosses may not have accounting training.

"Networking is essential," she reiterated, explaining how it can help professionals share knowledge and experiences. "No one can solve every problem alone; a strong network is invaluable."

Changing perceptions in the workforce

Chan acknowledged that the traditional view of loyalty in the workplace is shifting. "If a young person stays with you for five years, that's considered long service," she remarked. To retain talent, organisations must adapt to the expectations of a younger workforce that values rapid progression and diverse experiences. "We need to ensure that standard operating procedures are in place, allowing for a quick learning curve," she suggested.

Furthermore, empowering employees to contribute ideas and make decisions is crucial. "Younger generations want to feel they can make a difference," Chan pointed out, stressing the need for flexibility and networking opportunities.

Embracing digital transformation

The introduction of digital technologies has the potential to revolutionise the accountancy profession, yet Chan believes the pace of change is still too slow. "Today, there's a lot of manual and mundane work that should be automated," she explained.

Integrating ERP systems like Oracle and SAP could significantly enhance efficiency, but many organisations still prioritise customer experience over internal processes.

"Without automating tasks, we risk hiring degree holders to perform entry-level data entry, which is expensive," she cautioned. Chan believes that embracing technology will enable accountants to focus on higher-value tasks and help retain talent in the industry.

The future of accountancy is in hot demand.

Despite concerns that automation will render accounting roles obsolete, Chan is optimistic about the profession's future. "As long as trust is eroded, accountants will always have a job," she stated. With the rise of various audits—efficiency, effectiveness, sustainability—there is an ever-growing need for skilled professionals in the field.

"Accountants exist to ensure checks and balances on management," she explained, reinforcing their critical role in maintaining financial integrity. As the profession evolves, those considering a career in accountancy should know the exciting opportunities.

A call to arms

Chan's insights serve as a valuable reminder that the accountancy profession is dynamic and essential. By addressing misconceptions and promoting the field's long-term benefits, she hopes to inspire a new generation of accountants who will find satisfaction and purpose in their careers.

"If you think your life is boring, search for a nicer field," she concluded, encouraging aspiring professionals to explore the diverse and rewarding opportunities within accountancy.