The Institute of Singapore Chartered Accountants (ISCA) has released a strategy paper outlining a road map to support the future development of Singapore’s small and medium-sized accounting practices (SMPs). 

The road map comes as many SMPs experience increasing pressures such as working independently, dealing with strong competition, difficulties in attracting qualified staff and adapting to rapidly evolving technology. 

There are 761 accounting entities in Singapore, with 98% categorised as SMPs employing 100 or fewer people, with 70% of these being micro practices with ten or fewer staff members.  

These SMPs are central to Singapore’s network of small and medium-sized enterprises (SMEs), offering essential accounting services. 

The ISCA Strengthening SMP Taskforce developed the road map. It observed that company numbers are rising but talent attraction is a matter of a concern.  

Limited progression opportunities have been identified as a factor that is making recruitment difficult for many companies. 

Five areas form the basis of the recommendations for the strategy paper.  

Firstly, the paper suggests greater collaboration among companies, such as sharing resources and adopting shared services models to address staff shortages and improve operational efficiency. 

Secondly, it recommends the introduction of a digital badge framework to help SMPs display their achievements and expertise, making it easier for businesses and potential employees to assess quality providers. 

The third recommendation focuses on piloting technology solutions within practices to streamline tasks, boost productivity and attract the next generation of accountants. 

A fourth area encourages international activity through participation in Professional Services Centres.  

These centres could facilitate entry into overseas markets and stimulate demand for professional services originating from Singapore, recommended the paper. 

Fifth, the road map includes initiatives involving educational institutions and other partners with the aim of recruiting graduates and creating structured career pathways in the sector. 

ISCA council member and Strengthening SMP Taskforce co-chair Koh Wee Kwang said: “The SMP sector is a vital pillar of our business ecosystem. Yet many firms continue to operate in isolation amid mounting pressures on margins, talent and technology. This road map is about helping SMPs move from survival to strength, through scale, collaboration and a shared vision for the future.”

Earlier this month, the ISCA expanded its engagement with international partners by signing two new agreementsdesigned both to increase the number of chartered accountants in Singapore and provide support for local companies operating in other countries.