News

25 Oct 2024

Ms. Magdalene Ang, Vice Chair of the ACCA Singapore Members Network Panel, and Mr. Pulkit Abrol, Director of Asia Pacific at ACCA, addressed a distinguished audience at the annual ACCA Singapore conference. The event, themed “Reinventing the Profession for a Changed World,” focused on the evolving landscape of the accounting profession. Ms. Ang highlighted two key trends shaping the industry: environmental sustainability and technological disruption.

Global trends have significantly reshaped industries and corporate operations. To remain competitive in this evolving landscape, accounting professionals must adapt to these changes by acquiring new skills and adopting innovative approaches.

The Role of Accountancy in a Changed World

Environmental sustainability has become a pressing global concern. The accounting industry has actively contributed to this cause by promoting sustainable practices. For instance, banks have reduced their investment in coal mining and increased their focus on sustainable financing. Additionally, the urban landscape has been enhanced with the adoption of green building technologies, such as solar panels and energy-efficient cooling systems.

The accounting profession is playing a vital role in addressing climate change through ESG (Environmental, Social and Governance) reporting. Starting from Financial Year 2025, Singaporean listed companies will be mandated to disclose climate-related information alongside their financial reports. Accountants will be instrumental in ensuring compliance with these new regulations and providing valuable insights to businesses on sustainable practices.

A recent survey of accounting firms revealed a promising outlook for sustainability-related services. The firms anticipate significant growth in sustainability assurance and advisory services, with a projected increase of up to 19% in 2024. To meet this rising demand, the industry is expected to hire nearly threefold more professionals in sustainability-related roles by 2025. These trends highlight the growing importance of sustainability in the accounting sector and the emerging opportunities for accountants.

The growing demand for sustainability-related services has made the accounting profession more appealing to a new generation of socially and environmentally conscious professionals. To attract this talent pool, organizations like ACRA are actively promoting the profession’s role in sustainability reporting and assurance.

To address the growing demand for ESG skills, ACCA and KPMG have announced a new program to equip both accountants and non-accountants with the necessary competencies. This initiative is a positive step towards raising standards in the field of ESG.

The advent of technology, particularly AI, has led to speculation about the future of accounting. Contrary to these concerns, the role of accountants is evolving rather than diminishing. While AI can automate routine tasks, the need for human judgment, creativity, and problem-solving skills remains essential.

Artificial intelligence has revolutionized the accounting profession by automating tasks and enhancing analytical capabilities. AI-powered tools can efficiently process large datasets, identify patterns, and detect anomalies, allowing accountants to delve deeper into financial information. This empowers accountants to provide more insightful analysis and strategic recommendations to businesses.

The integration of AI in accounting has shifted the focus from routine tasks to higher-value activities. While AI can efficiently process data, accountants are still essential for interpreting complex financial information, providing strategic guidance, and ensuring ethical compliance. The human touch remains crucial in delivering nuanced insights and making informed decisions.

Artificial intelligence is a valuable tool that enhances the capabilities of accountants, but it cannot replace human expertise. By combining the power of AI with the judgment and creativity of human accountants, organizations can achieve greater efficiency and make more informed decisions.

ACRA’s role in supporting the professional in embracing the new world

To facilitate this transition, ACRA is actively supporting the accounting profession in several ways

ACRA is actively supporting companies in their journey towards sustainability reporting. Later in this session, Rodney Huang, Director of the Sustainability Reporting Office, will discuss Singapore’s climate reporting and assurance roadmap. He will also outline the support measures available to companies and assurance providers to comply with the upcoming mandatory sustainability reporting and assurance requirements.

To encourage digital transformation in the accounting sector, ACRA has launched the Productivity Solutions Grant (PSG) for Accountancy. This grant provides financial support to firms adopting digital solutions to enhance automation, productivity, and overall efficiency. Since its inception in 2023, the PSG has received over 100 applications for pre-approved solutions across six categories.

In May 2023, the Accountancy Workforce Review Committee (AWRC) released recommendations to enhance the appeal and sustainability of the accounting profession in Singapore. Various stakeholders, including accounting firms, academic institutions, and professional bodies like ACCA, have since implemented strategies to attract and develop talents. These initiatives range from salary adjustments to enhanced learning and development programs.

Closing

In conclusion, the theme of this year’s conference, “Reinventing the Profession for a Changed World,” is highly relevant. The accounting profession is well-positioned to adapt to future challenges and opportunities.

She thanks everyone for attention and looks forward to engaging in further discussions and collaborating with them to shape the future of the accounting profession in Singapore and beyond.

If your company needs help filing taxes for the year 2024, or requires assistance with Singapore incorporation, economy, banking, etc., feel free to call/WhatsApp us at +65 90612851 or email us at aceglobalacct@gmail.com. Alternatively, you may leave us a reply using our contact form below.

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