ISCA outlines strategy for small and medium-sized accounting practices in Singapore

Core Insights - The Institute of Singapore Chartered Accountants (ISCA) has released a strategy paper aimed at supporting the future development of small and medium-sized accounting practices (SMPs) in Singapore, addressing challenges such as competition, talent attraction, and technological adaptation [1][2] Group 1: Current Landscape of SMPs - There are 761 accounting entities in Singapore, with 98% classified as SMPs employing 100 or fewer people, and 70% of these being micro practices with ten or fewer staff members [2] - SMPs play a crucial role in Singapore's small and medium-sized enterprises (SMEs) ecosystem by providing essential accounting services [2] Group 2: Challenges Faced by SMPs - Increasing pressures on SMPs include operating independently, strong competition, difficulties in attracting qualified staff, and adapting to rapidly evolving technology [1][2] - Limited progression opportunities have been identified as a significant factor hindering recruitment efforts for many companies [3] Group 3: Recommendations from the Strategy Paper - The strategy paper recommends greater collaboration among companies, including resource sharing and adopting shared services models to address staff shortages and enhance operational efficiency [3] - A digital badge framework is suggested to help SMPs showcase their achievements and expertise, facilitating assessment by businesses and potential employees [4] - The paper advocates for piloting technology solutions within practices to streamline tasks, improve productivity, and attract the next generation of accountants [4] - Encouragement of international activity through participation in Professional Services Centres is recommended to facilitate entry into overseas markets and stimulate demand for Singapore-originating professional services [5] - Initiatives involving educational institutions and other partners are included to recruit graduates and create structured career pathways in the sector [5] Group 4: Importance of SMPs - The SMP sector is described as a vital pillar of Singapore's business ecosystem, with a focus on helping these firms transition from survival to strength through scale, collaboration, and a shared vision for the future [6]