The Association of Chartered Certified Accountants (ACCA), the world’s largest global professional accounting body, has published a new report, supported by the Singapore Accountancy Commission, that explores the future demand for professional business and advisory services.
Source: ACCA Global website. Cover for
the Market demand for Professional
Business and Advisory Services report.
The report highlights the increasing demand for professional services, particularly those related to data science, analytics, and artificial intelligence, by corporations, including small and medium-sized enterprises (SMEs). Such services are deemed crucial for driving the digital economy and transforming Southeast Asia into a technologically advanced region.
Focusing on Singapore, the ASEAN region, and China, the report analyzes corporate budgets to assess the market demand for specific professional business and advisory services over the next three years. It also identifies areas where businesses are seeking external advice, aiming to assist consultancies, including accounting firms, in refining their service offerings and business models to optimize growth and revenue in the coming years.
According to the report, IT solution services, along with IT advisory services, are among the top three most sought-after professional services by corporations in the next three years.
In her keynote address, Second Minister for Law, Finance and Education, Ms. Indranee Rajah, highlighted the report’s identification of trends such as the automation of routine tasks, like bookkeeping and expense processing, through smart software and systems, and the transformative impact of emerging technologies, like artificial intelligence (AI), on complex accounting work.
She acknowledged the initial mixed reactions to technologies like AI and robotics, noting concerns about job displacement alongside the recognition of their potential to revolutionize work and life.
However, she emphasized the current shift towards adaptation and leveraging these technologies to enhance business processes. She cited examples of robotic process automation in accounting and the adoption of online accounting software like Xero, which automates manual processes and allows businesses to improve inventory and cost management.
Ms. Rajah highlighted the technology-driven evolution of professional accountants from traditional bookkeeping roles to strategic business leaders. She drew a parallel with the legal sector, where “lawyer-bots” are automating low-value tasks.
While acknowledging the transformative power of technology, Minister Rajah emphasized the irreplaceable value of human capabilities in areas such as relationship building, complex systems management, and handling nuanced tasks requiring human judgment.
She stressed the importance of adaptability, collaboration, and trust in navigating the digital world, emphasizing their critical role in enabling the accountancy and legal professions to harness digital advancements effectively.
The report was launched at the 2018 ACCA annual conference, themed Professional Accountants - The Future: ASEAN Digital Perspectives.
During the conference, ACCA Chief Executive Helen Brand, OBE, delivered a presentation on Shaping the global accountancy profession across three dimensions: digital, social and ethical. She emphasized the opportunity for the current generation of accountants to leverage technology in areas like improving business processes, enhancing knowledge collaboration, influencing employment models, and shaping learning interventions. She even highlighted the potential for reverse mentoring to bridge the technology gap with older colleagues.
Leong Soo Yee, Director of ACCA, ASEAN & ANZ, stressed the significant influence and impact of ASEAN and the digital economy on the region, further magnified by the rapid growth and scale of the digital economy sector.
In a related development, ACCA, the National Trades Union Congress (NTUC), and AI Singapore announced a partnership to expedite capability development in the finance and accounting functions of SMEs and small and medium-sized professional services firms in finance and accounting (SMPs). This initiative, known as the ACC(X)ELERATE program, will offer training, workshops, and solutions focusing on talent development, digitization, and internationalization.
The program draws insights from various studies, including ACCA’s Professional accountants – the future: Generation Next global research, which highlights essential skills for finance and accounting professionals, and ACCA’s Market Demand for Professional Business and Advisory Services. The latter report reveals a growing need for non-regulated professional services, such as IT solutions advisory, risk advisory, and process improvements.
Other key references include the NTUC’s Future Jobs, Skills and Training (FJST) Forum 2018 report, which identifies success factors for companies adapting to a changing work environment, and a NTUC roundtable discussion with chief financial officers. In this discussion, 76% of participants identified technology as the primary driver of change in jobs and skills within the accountancy sector, while 20% attributed it to business model changes and 4% to globalization.
ACCA will encourage SMBs and SMPs to embrace technology for business transformation and workforce upskilling. The organization will provide training and workshops to enhance the digital skills and knowledge of accounting and finance professionals, focusing on technology education for improved productivity and internationalization, including cloud technology. Leveraging NTUC’s progression and placement programs, workers will receive guidance to remain competitive in the future job market.
The program will leverage the digital expertise of AI Singapore and collaborate with technology solution providers specializing in cloud computing and small business solutions to accelerate digital awareness and transformation in finance functions. Additionally, ACCA and AI Singapore will explore the potential of robotic process automation (RPA) as an industry solution and develop an AI talent recruitment program for accounting and audit firms.
Reuter Chua, Country Head of ACCA Singapore, highlighted that ACCA’s global insights into the future of the profession and the evolving expectations of business leaders from their finance functions are shaping the program’s direction.
Patrick Tay, Assistant Secretary-General of NTUC, stressed the growing need for finance and accountancy professionals to integrate technology into their work as businesses undergo transformation, a trend supported by various studies, including those conducted by NTUC’s FJST.
He urged employers, particularly SMEs, to utilize the program for talent development, business digitization, and collaboration with NTUC on workforce progression. Mr. Tay emphasized the importance of collective action among stakeholders to drive substantial and lasting change, expressing optimism about partnering with industry stakeholders, employers, and workers to prepare the sector for the future economy.
Further details about the ACC(X)ELERATE program will be announced later this year.
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