In your experience, what are the key factors contributing to the current shortage of qualified accountants in India?
There are quite a number of factors that contribute to that shortage. The first ones that are referred to are in fact very good news, because the economic growth that India is experiencing is absolutely fantastic. But as it continues, that means that there are not as many professional qualified accountants to serve the needs of the organisations that are in India and therefore it is a very important part of it. Also, as those organisations globalise, India needs to get more and more professional qualified accountants that not only know the actual accounting, but know all the areas that relate to global standards. And so that sort of compounds to that shortage and we also have quite a number of reforms that are leading to that growth, whether it is in our accounting standards, the introduction of GST, all of those are very important reforms which means you need more and more professional, qualified accountant in those areas. And of course as we see that technology and sustainability are two of the significant megatrends. And these indeed, will require professional qualified accountants that have the skills that evolve. So all in all, this contributes to that shortage of accountants that really need to ensure that there is a supply of trained accountants and which is one of the reasons why ACCA is very keen to contribute to meeting that supply and demand that is required.
How does this gap impact business and the overall Indian economy?
The gap signifies how you comply with either financial reporting compliance. The regulatory environment is becoming more and more complex, as I said and you have a number of reforms. So if you don't have those skills, it just means that you're not able to move as fast into that sort of compliance, which is a very important agenda. And, in turn, what it means is that organisations are having higher costs in terms of how they comply, but also, because of the gap that exists, they are running behind from being able to provide those skills and train their accountants. I think as a broader sort of agenda, what happens is that organisations are not able to be as transparent and demonstrate how they are able to prosper and in turn, that doesn't attract the investment. So there's a real snowball effect. Without gap, which is why it's very urgent and it's very important and some of this snowball effect, it comes with time, but to ensure that that growth that India is experiencing continues, it's very important that we narrow that gap effectively because the very important aspect of not having professional qualified accountants is not only the compliance, but also ensuring that they provide a strategic advice and information for the organisation.
What specific skills and qualifications are most in demand for accountants in today's Indian market?
Some of the reforms we currently have relate to our reporting standards. The International Financial Reporting Standards (IFRS) have been in significant demand for a while, but there still aren't enough qualified professionals to meet this demand. This remains a crucial focus area. Additionally, with an increasing emphasis on sustainability, ESG (environmental, social and governance) requirements are also in high demand. The ACCA has integrated sustainability qualifications for some time, but with the introduction of new sustainability reporting standards last year, these skills have become even more important.
Moreover, developing technology skills is vital for professional accountants. With the advent of artificial intelligence, automation, and robotics, it's essential for accountants to adapt and embrace these technologies. As the role of finance professionals evolves into that of strategic advisers, they need to focus not only on past performance and reporting but also on future forecasting, business growth and developing business cases. Therefore, communication skills, leadership skills and problem-solving abilities are becoming increasingly important. These well-rounded soft skills are essential for success in the profession.
What initiatives is ACCA undertaking to help bridge the gap between the current talent pool and industry needs?
At ACCA, our commitment is embodied in our tagline, "Think Ahead." We're constantly looking forward and bridging gaps in the profession. We achieve this by ensuring our qualifications are up-to-date and regularly reviewed. Our delivery and examination methods incorporate the latest technological advancements and focus on building not only technical skills but also professional, communication and ethical skills.
We also prioritise understanding the needs of employers regarding future finance professionals. Through extensive work with employers and research conducted by our professional insights team, we anticipate these needs and adapt accordingly. This research also helps us understand the aspirations of new entrants to the profession, ensuring they feel encouraged to join.
Addressing the skills gap among professional accountants is crucial for ACCA. Our role involves making the profession attractive to new generations by highlighting the diverse opportunities it offers. By doing so, we strive to create an ecosystem where supply meets demand effectively.
What are the emerging trends in accounting and how can educational institutions better prepare students for these changes?
Two significant trends are currently transforming not only the accounting profession but also businesses and organisations, with technology at the core. As professional accountants, leveraging technology to streamline processes is crucial for increased effectiveness and efficiency. The rise of artificial intelligence (AI) is a key aspect, especially visual intelligence. Accountants are well-positioned to harness AI due to their proficiency with data and numbers. Mastering data analytics allows them to translate data into actionable insights, which is essential for predicting growth and assessing risks, thereby enhancing the profession's evolution and appeal to newcomers.
Professional accountants can aspire to leadership roles within organisations or even establish their own businesses. Sound accounting skills are critical, as many businesses fail due to poor financial management. Furthermore, environmental, social and governance (ESG) concerns, along with sustainability, are becoming increasingly important. New generations are highly attuned to these issues, which are quantifiable and require measurement. Accountants are well-suited to advance these agendas within organisations.
Through the ACCA qualification and various ACCA learning certifications, we are committed to integrating these competencies into educational programmes. Our goal is to collaborate with educational institutions to prepare students for the future, ensuring they acquire the necessary skills to support their career aspirations and contribute meaningfully to their organisations.
How AI is helping accountants around the globe?
Artificial intelligence (AI) is revolutionising the accounting profession. Traditionally, accountants were seen as the people who handled debits, credits and numbers, leaving them little time to analyse data and provide strategic advice. Now, AI is taking over many of these manual tasks, allowing accountants to automate processes they previously had to handle themselves. This shift is especially appealing to newer generations who prefer not to engage in repetitive tasks. Employers are recognising this trend and are increasingly automating routine accounting processes. However, this doesn't eliminate the need for accountants. Instead, accountants must now focus on understanding the outcomes provided by AI, such as insights from tools like ChatGPT. To ensure meaningful results, the data fed into AI systems must be of high quality, a task that only professional accountants are equipped to manage.
So, the accuracy is the integrity of the data and from that being able to manage the data, being able to preserve. Integrity is going to be a significant data and is going to be a significant risk. We already know that people of different professions put the data into Chat GP and we need to be very careful about all that data that is underneath us, the professional accountant will know very well on what not to put and how to interrogate that data. Therefore, at the end, it is about the quality of the data that you bring in, the insight and the quality of the insight that comes out and this is how professional accountants will be able to contribute, but they will also be able to also build a lot of these systems. And this is only the beginning. And this is why I raised this here. We are doing a lot of work, as I mentioned before, on professional insights, to understand CFOs, from professional classes in different parts of their organisation, in Audit, in IT, in Risk Management to understand what they are doing. How are they using AI and therefore being able to then incorporate that in how we equip the future of professional accountants and existing ones through continuous professional development as well.
Accuracy represents the integrity of data, which is crucial for effective data management and preservation. Maintaining data integrity is a significant challenge and risk. Various professionals input data into systems like ChatGPT, so it is essential to handle this data carefully. Professional accountants, in particular, understand what data should not be entered and how to properly analyse the data. Ultimately, the focus is on the quality of data input and the resulting insights. Professional accountants can contribute significantly to this process and help develop these systems. This is just the beginning. Our current work involves gathering insights from CFOs and professionals in audit, IT and risk management to understand their use of AI. This understanding will help us better equip both current and future accountants through continuous professional development.
What is your outlook on the future of the accounting profession in India?
I am very optimistic and enthusiastic about the outlook of the accounting and finance profession in India for several reasons. Firstly, the significant shortage of qualified accountants presents a great opportunity for newcomers. Additionally, with ongoing reforms and global megatrends influencing the Indian landscape, professional accountants will play crucial roles across various domains. The evolving nature of the profession means it is no longer limited to numbers and auditing. Instead, accountants are now pivotal in strategic areas, managing risks, safeguarding assets and leading sustainability initiatives. This expansion offers numerous opportunities across many sectors and fields, even for those who do not wish to pursue traditional accounting roles.
What can be done to ensure a strong pipeline of qualified accountants to meet the growing needs of the Indian economy?
To ensure that qualified professionals remain current with industry trends, ACCA members and other professionally qualified accountants have an obligation to continuous professional development. This isn't just an obligation, but an absolute requirement to stay relevant and acquire essential skills. These skills include soft skills, leadership, sustainability and technology. Higher education institutions must also ensure their curriculum are constantly updated. ACCA plays a crucial role in supporting this effort by regularly updating our qualifications, a process that will need to become even more frequent in the future.
Given the significant contribution of Indian accounting professionals to the global workforce, how can India leverage this expertise to further strengthen its own accounting talent pool?
India is no longer just an exporter of professional skills, it has become an integral part of the global economy. This shift necessitates the continuous transfer of knowledge and skills, along with the adoption of international standards, while preserving the local context. At ACCA, we introduced IFRS in our curriculum in 1996 and many countries are still finalising its implementation. This ongoing process is similar to the adoption of sustainability standards. India, with its remarkable expertise, must implement these global standards and integrate international qualifications at a faster pace. Collaborating with global organisations like ACCA will be crucial and we look forward to contributing to and being part of this journey.
BW Reporters
The reporter works as Senior Correspondent with BW Businessworld
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