Philippines: AAT and PICPA join forces to address talent challenge

AAT and the Philippine Institute of Certified Public Accountants (PICPA) have signed a new agreement that will see the two professional accounting organisations (PAOs) working together to help address the Philippines’ skills shortage and to raise the status of accounting technicians. 

It comes as AAT CEO Sarah Beale and AAT International Lead Tim Dawkins return from a delegation to Davao City, in the country’s south, where they addressed the 79th PICPA Annual National Convention. The convention brings together thousands of accountants as well as sector leaders from across the region, many of whom are attending the concurrent international conference hosted by the Confederation of Asian and Pacific Accountants (CAPA), and the ASEAN Federation of Accountants (AFA) Council meeting. 

The Philippines is home to the world’s 28th largest economy with an annual GDP of $1.39tn USD. To keep growing, the country will need to address a shortage of accountants which threatens to see its stock of 200,000 Certified Public Accountants (CPAs) in a fall over the next decade. 

AAT is the leading body for accounting technicians globally. While many other countries, including the United Kingdom, Australia and Malaysia recognise the accounting technician role, the Philippines has yet to officially sanction the designation. 

“The challenges facing the Philippine accountancy sector mirror what many countries are encountering,” AAT CEO Sarah Beale said. “The UK's experience shows how accounting technicians can help practices and industry adapt to changing times and workload pressures, while absolutely maintaining high standards,” the CEO said. 

Perceptions and low pay biggest factors behind skills shortage 

PICPA and AAT joined forces to survey more than 450 Certified Public Accountants (CPA) - a status most similar to ‘Chartered’ in a UK context.  

They found that nearly two in five (38.5%) professionals struggled with recruiting the talent they needed in the last year. 34% of respondents expected it to be a challenge going forward, with only 13% saying they had not found a problem with recruitment.  

More than two thirds (67%) of the accountants surveyed said the biggest talent challenge they faced was a shortage of qualified talent in the labour market. Next, more than half nominated low pay (51%) as the blocker to securing fresh recruits. Meanwhile, a lack of experience amongst potential hires was offered up by 40% if respondents – similar figures to those who said a of essential skills (34%) got in the way of their firm’s talent pipeline. 

Struggling to close their talent gap presents a major problem in a country where more than 80% of accountants see the growth of their business coming locally in the Philippines over the next five years, which will therefore require accounting talent to support.   

Beale said there is also a big need for additional accountants in public finance, where the Philippines simply could not fill vacancies in government agencies, local authorities and public services. She said the problem was true of many other countries, with attendees from a range of countries highlighting their shared need to fill vacancies in the public sector. 

New MOU will develop the profession 

As the survey highlights a shortage of qualified talent in the market, there was a need to introduce new routes into accountancy to benefit students by further advancing the profession and to meet the skills needs of businesses.  

“We’re seeing more UK clients and practices contending with local talent shortages looking internationally, including at the Philippines, to source the accountancy skills they need. What we need to make sure, collectively, is that there is the pipeline of new talent coming through to meet that rising demand,” Beale stated. 

While in the Philippines, AAT CEO Sarah Beale joined PICPA National President Roland Cafe Pondoc to sign a new Memorandum of Understanding (MOU) pledging collaboration to advance the status of accounting technicians in the region. 

“We welcome this new agreement with AAT. Their knowledge of global standards and creating new pathways into the profession will be essential to PICPA’s ability to support our members and bring through the next generation of accounting professionals for the Philippines,” Pondoc said. 

“This agreement commits us to work together to grow the recognition of accounting technicians - both on the world stage and here in the Philippines. It’s an exciting opportunity to create pathways for new talent to enter the local accounting sector and support the future growth of the vital Philippine economy,” he said. 

‘Future of accountancy is here’ 

Sarah Beale spoke to more than 4,000 members and international participants as part of the delegation, which featured a panel hosted by Confederation of Asian & Pacific Accountants (CAPA) on the The Future of Accounting.  

Beale implored the thousands gathered to help tell the story of modern accountancy, one that embraces technology, sustainability, and business advisory. 

“Rebranding accountancy is up to all of us,” she said. “We are not boring number crunchers for one moment of our careers. Accountants are turbocharging the businesses and organisations we work with.” 

Highlighting the adaptability of AAT members in a rapidly changing world, Beale said the ‘future’ of accounting had arrived.