challenges for the cpa in the 21 st century presented by jason ling cpa (aust), ca(m), b comm 12...
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Challenges for the CPA in the 21st CenturyPresented by Jason Ling CPA (Aust), CA(M), B Comm
12 June 2008
Expert Series Talk: Accountants of the FutureExpert Series Talk: Accountants of the Future
Agenda
About JobStreet.com JobStreet.com statistics Current developments/ trends Evolving role of finance & accountants Important skill sets What’s in demand and alternative careers Salary report
Brief intro of JobStreet.com
Malaysia’s No. 1 online recruitment website
Improving people’s lives through a better career
Operations in Malaysia, Singapore, Philippines, India, Indonesia, Japan & Bangladesh
Over 25,000 companies in Malaysia use JobStreet.com to hire
Even accountants found their jobs on JobStreet.com!
JobStreet.com statistics
About 16,000 jobs available on JobStreet.com MY site
About 2,400 jobs in audit/taxation, general/cost accounting, finance/investment & banking/financial as of today
There are approximately 350,000 jobseekers registered on JobStreet.com who majored in commerce, finance, accountancy, business studies and management. This accounts for about 31% of our database.
Total Accounting/Finance Related Positions @ 10/06/08
Malaysia & Overseas
General/Cost accounting 1468
Banking/Financial 445
Audit & Taxation 349
Finance/Investment 203
Total 2465
Malaysia - Top 5 States Hiring General/Cost Accounting Related Positions
Selangor (550) Kuala Lumpur (426) Johor (119) Penang (75) Melaka (25)
Malaysia - Top 5 States Hiring Banking/Financial Related Positions
Kuala Lumpur (234) Selangor (106) Johor (44) Penang (38) Sabah (32)
Malaysia - Top 5 States Hiring Audit &Taxation Related Positions
Kuala Lumpur (110) Selangor (91) Johor (89) Penang (29) Kedah (8)
Malaysia - Top 5 States Hiring Finance/Investment Related Positions
Kuala Lumpur (92) Selangor (54) Penang (21) Johor, Kedah, Melaka, Negeri
Sembilan (5) Labuan (4)
Overseas – Countries Hiring Malaysians for General/Cost Accounting Related Positions
Singapore (178) Thailand Vietnam China Hong Kong
India Indonesia Philippines Other locations (25)
Overseas – Countries Hiring Malaysians for Banking/Financial Related Positions
Singapore (19) Other Locations (22)
Overseas – Countries Hiring Malaysians for Audit & Taxation Related Positions Singapore (58) China Hong Kong India Indonesia Vietnam Other Locations (3)
Overseas – Countries Hiring Malaysians for Finance/Investment Related Positions
Singapore (37) China (5) Other Locations
Jobs posted by specialization (Jan-Dec 2007)
Sales & marketing, 24728, 16%
Information Technology, 23463, 16%
Engineering, 21913, 15%
Others, 57625, 38%
Accounting, finance & banking,
21808, 15%
Growth in accounting & finance related jobs
0
2000
4000
6000
8000
10000
12000
14000
2003 2004 2005 2006 2007
No
. o
f jo
bs
po
ste
d
Audit & Taxation
Corporate Finance/Investment/Merchant Banking
General/ CostAccounting
Banking & Finance
257 % increase
Developments / Trends Globalisation
Economic growth e.g. China boom
Inflationary cost pressures
Increasing complexity in regulations and financial disclosure e.g. fair value accounting
Shortage of experienced accountants globally
Outsourcing/ offshoring
Globalisation – how does it impact us? We’re no longer insulated from global events Need to be familiar with rules and regulations outside
Malaysia Increased governance See big picture e.g. tax planning Our systems need to be compliant with those of our
trading partners Increased emphasis on cost reduction and higher value-
add & productivity Culture and language barriers
Factors contributing to demand for experienced accountants Economic boom in China, India, Middle East
New rules/requirements e.g. SOX
Shared services and outsourcing/ business process outsourcing
More alternative career paths for accounting graduates
Retirement of baby boomers
Offshoring/ SSC/ BPO Offshoring – relocation of certain business functions/processes from
one country to a lower cost country e.g. relocate manufacturing base to China
BPO – outsourcing business functions to a third party e.g. Nike outsourcing manufacturing to subcontractors, call centres in Philippines
SSC – centralization of in-house processes in one facility
Shell, Stan Chart, HSBC, IBM, DHL have set up SSCs in Malaysia
Objective of lowering cost, removing duplication, improving efficiency, moving towards higher value-add
How does that impact us as accountants?
The accountant’s role is evolving Previously, technical based, number crunching,
report churning, information gatekeepers
Offshoring/outsourcing/centralisation of transactional processing
Increased in business demands, globalisation etc requires business intelligence
Changes in organisational structures
Accountants need to be BUSINESS PARTNERS
Change in emphasis
Before Now & Future
Technical Strategic, analytical
Specialised Multi dimensional
Financial Business acumen
Routine Non-routine
Hindsight Hindsight & foresight
The new finance model
Business partner
Finance specialists
Shared services
Procurement
Payroll
GL accounting
AR/ AP
Accounts
Tax planning
Treasury
Risk management
Internal audit
Business insight/ analysis
Business planning
Budgets and forecasts
Customer profitability
Brand/ marketing effectiveness
Costing/ management
Source: In the Black, Dec 2006
Why accountants as business partners?
Easier for accountants to update skills from provider to facilitator of information
Reliance on financial information will remain important
Understands control mechanisms and processes
Always seen as an objective authority. Hence, credibility established
Expectations on the modern CPA
Strong business skills Technical prowess Strategic advice Leadership skills Strong interpersonal & communication skills Understand business operations See the big picture Able to wear many hats
What you can deliberately do… Expand your exposure in the organization Plan your career wisely Set objectives and timelines Obtain the necessary accreditation Read read and read Keep abreast of developments Develop soft skills Complement accountancy with additional qualifications
e.g. FPM, CFA, IIA, MIT etc Obtain overseas experience Manage projects
Accountants in demand
Compliance, risk management experience International tax expertise Experiences with regional roles Strong interpersonal skills, negotiators Bi-lingual Willing to relocate Strong business acumen M&A experience
Alternative career paths… Fund management/ equity analyst Financial journalists Market regulators and authorities Financial planners Financial & ERP software consultants Forensic auditors Sales – wealth management products Investor relations Personal assistants to CEOs, MDs Business development Education – lecturing, technical dept
Salary report – explanatory note
Project Manager
Position Level Years of Experience
Senior Manager >10 years
Manager 5 – 10 years
Senior Executive 3 – 5 years
Junior Executive 1 – 3 years
Fresh Graduate 0 – 1 year
Salary Range Percentile
Min 25
Average 50
Max 75
Estimated Salary Range (in Malaysia)
Accountant
Position Level Availability Min (RM)*Average
(RM)*Max (RM)*
Senior Manager 12 5,390.00 6,500.00 8,000.00
Manager 83 4,400.00 4,800.00 5,700.00
Senior Executive 134 3,200.00 3,800.00 4,500.00
Junior Executive 64 1,500.00 2,100.00 2,770.00
Fresh/Entry Level 7 800.00 1,000.00 1,550.00
Estimated Salary Range (in Malaysia)
Audit Assistant
Position Level Availability Min (RM)* Average (RM)* Max (RM)*
Senior Executive 134 3,200.00 3,800.00 4,500.00
Junior Executive 64 1,500.00 2,100.00 2,770.00
Fresh/Entry Level 7 800.00 1,000.00 1,550.00
Senior Accounts Executive
Position Level Availability Min (RM)* Average (RM)* Max (RM)*
Senior Executive 449 2,600.00 3,100.00 3,500.00
Estimated Salary Range (in Malaysia)
Finance Executive
Finance Manager
Position Level Availability Min (RM)* Average (RM)* Max (RM)*
Senior Executive 627 2,500.00 2,903.00 2,550.00
Junior Executive 977 1,900.00 2,203.00 2,500.00
Fresh / Entry Level 57 1,500.00 1,800.00 2,000.00
Position Level Availability Min (RM)* Average (RM)* Max (RM)*
Senior Manager 95 6,000.00 7,500.00 9,000.00
Manager 433 4,500.00 5,600.00 7,000.00
Some tips and advice Personalise your CV
Highlight exposure to multiple areas of finance & accounting
Avoid copying lengthy common job descriptions
Highlight leadership experiences
Use relevant keywords esp. in the online recruitment era e.g. IPO, tax incentives etc.
Mention experiences with various software and systems
Always include a job application letter
Demonstrate soft skill development and experiences
Avoid frequent job hopping
Act with integrity, apply wisely & show up for interviews