Accounting body names 5 ways to support small, medium audit firms, calls for graduate talent pipeline

[SINGAPORE] The Institute of Singapore Chartered Accountants (Isca) on Tuesday (Dec 16) launched a strategy paper to help future-proof small and medium-sized accounting practices (SMPs) in Singapore.

Around 98 per cent of accounting entities (AEs) in the Republic are SMPs, with 100 or fewer staff on their payroll; in fact, 70 per cent of the 761 AEs (as at Mar 31, 2025) are considered micro-AEs, which hire 10 staff or fewer.

Although these small firms are the clear majority among AEs, they contributed only around 15 per cent of the sector’s revenue in 2024, and hired only a quarter of Singapore’s accountancy workforce, a survey among AEs found.

A statement by Isca said on Tuesday: “Many SMPs today face mounting pressures: operating in isolation, facing tough competition, struggling to find talent, and keeping up with fast-changing technology.”

The paper listed five ways SMPs in Singapore could be given better support, so that they can move from operating in isolation towards greater scale, collaboration and long-term sustainability.

The first recommendation is to strengthen a “graduate talent pipeline” into these smaller firms through a pilot placement programme.

The aim is to launch programmes with universities and partners to attract graduates, and offer them clear career paths and development opportunities in the SMPs, said Isca.

A pilot programme for SMPs, supported by Isca and institutes of higher learning, could be started, to create a pathway for graduates to start their careers in smaller practices.

The fresh graduates would then be exposed to the “dynamic, hands-on work” environment in SMPs, the paper indicated. At the same time, firms can identify and nurture emerging talent early on.

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Secondly, Isca is also working to develop a “digital badge system”, through which firms can cite their strengths and achievements. This would make it easier for businesses and talent to spot quality providers.

Badges could be awarded in various categories, such as sustainability excellence, quality compliance and specialist talents.

The badges could also push the firms to strive for continuous improvement and raise the overall standards in the profession, noted Isca.

A third recommendation put up in the white paper called for shared-service centres to be integrated progressively into industry-led overseas professional-service centres.

A “greater exchange of expertise and talent” through structured talent-matching initiatives, coordinated training and digital-collaboration tools can then be put in place for SMP professionals.

This would in turn ensure that offshore capabilities are aligned with international service standards and local practice needs, the paper said.

The fourth and fifth recommendations, respectively, encouraged accounting firms to collaborate more, and for new tech solutions to be put through pilots to raise efficiency levels in the space.

Helmi Talib, co-chair of Isca’s Strengthening SMP Taskforce and Isca council member, said: “We must move away from the idea of (working) alone and embrace new ways of working together that allow firms to scale up, invest in innovation, and attract the next generation of professionals.”