As new advancements in technology come here and there, the finance function in companies in Indonesia face challenges in terms of reskilling and upskilling to keep up with the demands of the market.
The Association of Chartered Certified Accountants (ACCA) chief executive officer, Helen Brand, said in an interview that there is a need to "supercharge" the accountancy profession amid a lack of accountants in all economies.
Although this is still "okay", as Brand noted, she warns that this could result in a major issue in the coming years.
It is for this reason that finance teams have to work on talent management and fully understand the weight and importance of upskilling in the accountancy profession.
In Indonesia, Ruby Panjaitan, ACMA, CGMA, director of Finance at PT Media Nusantara Citra Tbk and PT Global Mediacom Tbk, believes rapid technological changes have greatly influenced the accounting profession, including open source systems to process data more efficiently, data digitisation and automation, mobile data storage to access real-time data and analytics from anywhere to make better decisions and artificial intelligence.
"Accounting courses in university do not fully accommodate the above topics," Panjaitan says. "With this limited knowledge and sources, the companies are required to facilitate it through continuous education, in-house learning, and collaboration with third parties."
Several ways
Aureen Na, manager – Commerce Finance at Robert Walters Indonesia, agrees that there is a need to supercharge the profession in their country to keep up with the changes in the market.
"By supercharging the accounting profession through continuous learning, embracing technology, enhancing analytical skills, and fostering collaboration, accountants in Indonesia can effectively adapt to market changes and contribute to the success of businesses in the evolving landscape."
Na suggests several ways to achieve this kind of leveling up within the profession, enumerating:
Continuous professional development: Accountants should engage in ongoing training and development to stay updated on emerging technologies, regulatory changes, and industry trends. This can be achieved through participation in professional certification programs, attending seminars and workshops, and leveraging online learning platforms.
Embrace technology and automation: Accountants need to embrace digital tools and automation to enhance efficiency and effectiveness in their work. This includes adopting cloud-based accounting systems, utilising data analytics tools, and exploring robotic process automation to streamline processes.
Enhance analytical and advisory skills: Accountants should focus on developing analytical and advisory skills to provide valuable insights to businesses. This includes improving critical thinking, problem-solving, and communication abilities to become trusted strategic advisors.
Collaborate and network: Accountants should actively engage in professional networks and collaborate with other professionals to share knowledge, best practices, and industry insights. This can be done through joining professional organisations, attending industry
conferences, and participating in networking events.
The changes
Panjaitan says the COVID-19 outbreak has brought numerous companies to undertake work from home, affecting operations within the finance function. He admits that at the time, the impact from Covid-19 cannot be reliably estimated, and depends on the effectiveness actions and plans taken by the global and domestic governments, which were beyond the companies’ control.
He notes that responses to evolve on that situation included modification of operational flows, changes in working environment by maximising online meeting, and digitalisation of documents to ensure that documents were prepared properly, valid and on timely basis.
On top of these, they must adhere to the guidance issued by the Institute of Indonesia Chartered Accountants (IAI) in regard an entity's judgment to determine the fair value of financial instruments amidst significant market volatility during the pandemic.
Na, meanwhile, says the accounting profession in Indonesia overall has embraced technology, adapted to remote work, and played a vital role in supporting businesses during the pandemic through regulatory compliance, risk management, and advisory services.
Among the key developments and changes in the profession over the past few years include:
Digital transformation: The pandemic accelerated the adoption of digital technologies in accounting. There has been a shift towards cloud-based accounting systems, automation of manual processes, and increased use of data analytics tools.
Remote work: With the pandemic necessitating remote work arrangements, accountants had to adapt to working from home. This led to the increased use of collaboration tools and virtual communication platforms.
Regulatory changes: The government introduced new regulations and relief measures to support businesses during the pandemic. Accountants had to stay updated on these changes and ensure compliance in areas such as tax reporting, financial statements, and audit
requirements.
Focus on resilience and risk management: The pandemic highlighted the importance of resilience and risk management. Accountants played a crucial role in assisting businesses with financial forecasting, scenario planning, and managing cash flow effectively.
Increased demand for advisory services: As businesses faced unprecedented challenges, the demand for advisory services from accountants grew. Accountants provided guidance on cost optimisation, business restructuring, and financial planning to help businesses navigate the crisis.
Emphasis on sustainability reporting: The Indonesian government has placed greater emphasis on sustainability reporting. In 2020, the Ministry of State-Owned Enterprises mandated state-owned companies to disclose their environmental, social, and governance (ESG) performance.
Challenges ahead
In Indonesia in 2024, Na sees that accountants can expect to face several challenges, which include regulatory changes, as accountants should anticipate evolving regulations and accounting standards and stay updated to ensure compliance and accurate financial reporting.
Apart from this, Na believes technology advancements, with its rapid pace, may require accountants to enhance their digital skills and embrace new accounting software and tools.
Talent shortage will also become an area of focus as there may be a lack of skilled accountants in the market. "Accountants should focus on continuous learning and professional development to stay competitive and meet industry demands," Na says.
The Robert Walters commerce finance manager says increased complexity, with the growth of businesses and globalisation, pushes accountants to face complex financial transactions, cross-border taxation issues, and diverse regulatory environments. That's why they should develop analytical and problem-solving skills to navigate these complexities.
"To deal with these challenges, accountants in Indonesia should invest in continuous learning," Na explains. "Keep up with regulatory changes, develop digital skills, foster partnerships with technology providers, and actively participate in professional networks to share knowledge and insights."
She adds that embracing technology, staying updated, and enhancing problem-solving abilities will help accountants in Indonesia to navigate the challenges and contribute effectively to businesses in 2024.
On the other hand, Panjaitan sees economic conditions as the dominant factor in the performance of a company as well as the snowball
impact on employees, making it a challenge for professionals to retain them.Â
"Responding to these issues by improving company performance, maximising the use of assets to generate cash flows while maintaining cost efficiency, and determining suitable investments for companies to respond to changes in technology that tailor to its funding resources and investment payback, meet the budget and ensure risk management and business assurance already calculate in the process became the challenges for the financial profession."
Panjaitan suggests that one of the ways to approach this is to have one-on-one personal coaching with team members and conduct an open forum discussion.
"Management also has to convey loud and clear directions to the team and get the buy-in from the team to go the extra mile, motivating the team, minimising internal conflict, and consolidating them to ensure the achievement of the goal and performance of the company," Panjaitan explains.
Roadmap for talent retention
Panjaitan suggests a roadmap that the finance function can follow as part of the talent retention process within their organisations:
- Create a career development program within the team based on their skills and career path such as upskilling by taking relevant qualification such as CIMA examination to achieve CGMA designation.
- Ensure equality for them to participate in every talent assessment process.
- Mentoring to master their work and to be proactive in their self-development related to work and social interactions within the work environment.
- Building open communication to discuss their work progress and to motivate them for improvement and future opportunities.
Panjaitan notes that the skill of the leader and management to initiate, encourage people, and manage the organisation plays a significant role in adapting and coping with challenges in the retention process.
Key factors
To retain talent and maximise manpower for the benefit of the organisation as a whole, Na explains that creating a stable and skilled workforce contributes to the success of the company.
Na says there are some key factors for this:
â–ª Competitive compensation: Offering competitive salaries and benefits is crucial to attract and retain talented accountants in Indonesia.
â–ª Career development opportunities: Providing clear career paths, training programs, and opportunities for professional growth helps retain accountants by offering them a sense of progression and advancement.
â–ª Work-life balance: Promoting work-life balance initiatives such as flexible working hours, remote work options, and wellness programs can contribute to talent retention in the accountancy profession.
â–ª Recognition and rewards: Recognising and rewarding accountants' achievements and contributions, whether through promotions, bonuses, or public acknowledgment, boosts morale and increases job satisfaction.
â–ª Organisational culture: Fostering a positive and supportive work environment, promoting teamwork and collaboration, and maintaining open lines of communication can contribute to talent retention.
â–ª Workload management: Ensuring manageable workloads and providing resources to support accountants in meeting their responsibilities helps prevent burnout and increases job satisfaction.
"By addressing these key factors, organisations can increase talent retention in the accountancy profession in Indonesia," Na opines.
