Singapore’s accounting professionals not future-ready; lack of workplace support for skills development
Singapore, 11 October 2017
- Strategic thinking skills dominate while technology skills gain prominence
- Risk management skills perceived as less relevant
- Room for educational and professional bodies to boost curriculum for future-ready skills
A new survey by EY and CPA Australia found that Singapore’s finance and accounting professionals are not prepared for future job demands amid disruptions in the economy. The report, Future-proof your finance capability, surveyed 150 Singapore-based accounting and finance professionals between August and September 2017.
An overwhelming 79% of the respondents said they are currently not equipped with the necessary skills to meet the demands of their job in 10 years’ time. The top inhibitors preventing them from acquiring new skills include a lack of time (73%), financial resources (45%) and employer support (37%).
Vincent Toong, Assurance Partner at Ernst & Young LLP says:
“With the fast pace of change, a new skill may become irrelevant or obsolete sooner rather than later. To stay relevant and be future-ready, accounting professionals have to remain nimble and be flexible with their skill sets, adopt the mindset of a lifelong learner to keep abreast of industry trends and developments, and acquire the skills needed as the economy evolves.”
According to the survey, 6 in 10 found the current curriculum offered by education and professional bodies insufficient to develop future-ready skills. A similar number said their organizations are not helping them do so.
The survey respondents shared that professional bodies, educational institutions and the government can help by infusing technology into accounting curriculum or by introducing courses on adjacent skills so they can upskill.
Melvin Yong, Singapore Country Head at CPA Australia says:
“Acquiring skills of the future is a life-long learning journey that individuals must personally own. While organizations, educators and professional bodies can help, individuals may wish to look into how they can continually invest in their future, leverage advancements in technology, and ensure they continue to enhance their relevance to their organizations and are never left behind in the disruptive era.”
Strategic thinking and technology skills highly valued; risk management not a focus
The survey revealed that the top drivers of change that have the most impact on the accounting profession are the spread of digital technologies and business model disruptions; increased regulation and governance; and increasing globalization.
Against these changes, the top skills that finance and accounting professionals think they need to be equipped with in 10 years’ time are strategic thinking, business acumen, leadership, communication and influencing, and analysis and advisory. Technology skills, such as information technology and digital skills, and information management skills (such as statistical analysis and data mining), are also gaining prominence.
“The evolving role of the accounting professional calls for new skill sets, and it is clear that they need more than technical skills if they are to remain relevant in organizations. As accounting professionals are increasingly being asked to be business advisors to other functions in their organizations, it is not surprising that strategic thinking and business acumen and leadership skills rank high. Further, as more companies recognize the value of data and analytics, these professionals need to be able to harness technology to extract insights so that they can support better decision-making.”
Interestingly, risk management skills did not feature among the top skills that finance and accounting professionals think they will need to be future ready, despite being regarded highly by CFOs in our 2016 survey Ready for the future economy? The CFO’s perspective.
Toong explains the divergence in views:
“Larger organizations typically have a separate risk function while in smaller firms, the responsibility often rests with the owner-management or is outsourced to professionals. Hence many finance and accounting professionals do not see risk management as core to their role.”
Shared responsibility for progress
The report charts the way forward for individuals, organizations, and professional bodies and educators.
For individuals, they must see change as an enablement and not an impediment, and embrace lifelong learning and emerging technologies. Professional bodies and educators should keep their curriculum and courses relevant and fit for real-world readiness, catering to current needs while projecting the demands of the future. Employers should support skills development both in terms of time and financial resources, including allocating annual budgets for training and upskilling of organizational finance capabilities.
“Collaboration and partnership hold the key to overcoming many of the challenges in today’s disrupted environment. For the finance function, and by extension, the accounting profession to be future-ready, it will take all stakeholders – whether individuals, corporates, education providers or professional bodies – to actively evolve their roles and capabilities to partake in the opportunities in the future economy.”
The report was launched at CPA Congress 2017.
For the full report, please visit www.ey.com/SG/Future-prooffinancecapability.
Notes to Editors
About the study
Data for this report was gathered from an online survey of Singapore-based accounting and finance professionals from August to September 2017. To facilitate analysis, responses were grouped into companies based on staff strength and industry sectors. The demographic profile of the professionals, such as age group, and working experience particularly in the finance and accounting profession, was also considered.
This survey received 150 complete and usable responses. There was an even representation of professionals from the larger-sized organizations (with staff strength of more than 1,000) to the smaller-sized organizations (with staff strength of less than 20). The organizations operate in various sectors, with a higher concentration in real estate and consumer products. In terms of age, there were slightly more professionals falling into the 41-50 age bracket (38%), and more than 50% of the professionals have been in the finance and accounting profession for more than 15 years.
The study was launched at the CPA Congress.
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This news release has been issued by Ernst & Young LLP, a member of the global EY organization.
About CPA Australia
Founded in 1886, CPA Australia is one of the world’s largest professional accounting bodies representing more than 160,000 members working in 118 countries. CPA Australia advances its members’ interests through education and knowledge exchange, the development of professional networks, advocacy in relation to policy, standards and regulation and the promotion of value of CPA Australia members to employers, government, regulators and the public. The world-renowned CPA designation is synonymous with professional credibility and international portability. CPA Australia has been operating in Singapore for 63 years, having arrived in this market in 1954 under the auspices of the Colombo Plan.