Jazzing up the accounting profession
Revitalising Singapore’s accounting and finance sector will require a new approach to skills acquisition and talent management
IN AN era characterised by economic volatility, accelerated by both the pandemic and rapid technological innovations, Singapore’s accounting and finance sector is grappling with a worrying talent crunch.
Traditional roles are evolving, making the task of attracting and retaining a new generation of professionals increasingly difficult.
Industry insiders argue that a reframing of the profession can help usher in a pipeline of fresh talent adept at meeting the challenges of today’s business environment. Redefining the sector as one that goes beyond number-crunching, and into areas such as strategic advising and ethical governance, can lend it renewed allure.
Haryane Mustajab, chief operating officer and head of finance at Bird & Bird ATMD, calls for a narrative shift for the profession in light of the fast-changing business, governance and economic landscapes. “Accountants are trusted advisers to the senior management of an organisation and will continue to be stewards and ‘guardians of business ethics’ in most organisations. (As they hold) a critical role in most organisations, the issue of compensation and benefits for accounting and finance professionals should be addressed sooner rather than later,” she said.
Lee Wei Hock, deputy head of assurance at Ernst & Young LLP, echoes this sentiment. Citing Warren Buffet’s assertion that “accounting is the language of business”, he notes that a mastery of accounting provides unparalleled business insights, and potentially paves the way to executive positions. However, more needs to be done to educate prospective professionals to better understand the wider impact of accounting on business.
“Prospective professionals may not realise that having a good accounting foundation will in turn open the door to many mobility opportunities in business and organisations, including key executive roles. Interestingly, business leaders make it a priority to understand how their decisions may impact accounting, which eventually have a bearing on how the organisation’s financial performance may be perceived and interpreted,” he said.
A NEWSLETTER FOR YOU
Friday, 12.30 pm
ESG Insights
An exclusive weekly report on the latest environmental, social and governance issues.
Bridging the skills gap
Industry players also stress the need for accountants to acquire new skill sets such as analytics and sustainability reporting to remain relevant amid changing circumstances. In particular, the next generation of accounting and finance professionals must be prepared to incorporate sustainability into their careers to leverage the opportunities presented by this important space. Accounting professionals can play a pivotal role in ensuring that sustainability reporting is based on reliable and attestable data.
“Traditionally, the accounting and finance industry has primarily focused on aiding companies in managing their financial activities and reporting their performance. With the growing prominence of ESG (environmental, social, and governance) trends in recent years, many of these roles have evolved,” said Ian Hong, partner, KPMG ESG, KPMG in Singapore.
“Stakeholders are increasingly demanding comprehensive business performance assessments that include ESG factors, recognising their potential impact on a company’s financial health. Environmental risks can result in expensive fines or clean-up operations, while inadequate governance practices can lead to legal complications,” he added. Hong, Haryane and Lee are members of CPA Australia.
Meanwhile, Lee notes that technology will play an increasingly important role in the accounting profession, as part of its focus on maintaining the highest level of audit quality, promoting confidence in business and capital markets, and providing for a scalable and right-sized audit that aligns with companies’ transformation agendas.
“Professionals will have a chance to deploy the next generation of data access capabilities, and apply advanced analytics and AI technologies during audits, which will in turn enhance their experience,” he said.
Rethinking talent management
Traditional methods of mentoring and coaching, although valuable, also need to adapt to the shifting aspirations and values of emerging talent in the accounting and finance space.
To make the profession more attractive, Lee advised firms to work towards shortening paths to partnership or management, and to develop alternative career pathways for accounting and finance professionals within the organisation.
He also urged employers to expose their staff to a range of work experiences outside of their comfort zone. “This allows them to acquire and build adjacent skill sets and learn different aspects of the business to become a holistic and effective professional,” he said.
Haryane argued that clear career progression, good remuneration and compensation benefits are also critical in attracting to attracting and retaining talent. “Opportunities for advancement must be clear and transparent,” she said.
Singapore’s accounting and finance sector stands at a crucial juncture. Challenges emanating from a talent exodus and a shifting economic landscape require swift, yet thoughtful, interventions. These actions can help to revitalise the profession, and draw a new generation of professionals ready to steward the sector into the future.
Said Haryane: “Now, of all times, accounting can be fun and sexy too. The notion of accounting and finance professionals being passionless and boring should be debunked, as they embark on new frontiers for the new world and limitless opportunities.”
Copyright SPH Media. All rights reserved.
