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

Hard skills to have/ develop

Source: In the Black, Dec 2006

And very importantly, soft skills

Source: In the Black, Dec 2006

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

Search jobs smartly…

This is how companies see you…

Employers filter candidates…

Thank you &

All the best in your career journey