PH Faces Growing Accountant Shortage Crisis
ACCOUNTANT – The Philippines is seen struggling with shortage of accountants.
The Philippines is facing a growing shortage of accountants, a situation that is expected to worsen due to a decreasing number of students enrolling in accounting programs and various trends reducing the pool of talent available to traditional accounting firms.
Marvin Galang, co-founder of the financial mobile app Beppo, expressed concern on Friday over survey findings showing a 41-percent drop in local accounting program enrollments. He also noted a 35-percent decline in the number of certified public accountant (CPA) examinees from 2019 to 2023. This trend is exacerbated by the demanding exam requirements and a growing belief that accounting is less appealing compared to other careers.
Galang observed that this shortage is a global issue, not limited to the Philippines. The demand for accountants, auditors, and financial professionals is increasing due to more complex regulations, expanding business activities, and the need for accurate reporting.
Additionally, the imminent retirement of a significant portion of the current accounting workforce is worsening the shortage, as younger professionals are not entering the field in adequate numbers.
He highlighted that this shortage impacts firms’ capacity to take on new clients and affects the financial health of small and medium-sized enterprises. The evolving technology in accounting brings challenges such as the need for continuous learning, reskilling, cybersecurity, and changes in job roles. As accounting processes become more digitized, the risk of cybersecurity threats grows, requiring accountants to protect sensitive information and stay compliant with regulations.
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Galang also pointed out that the rise of outsourcing and freelancing adds significant challenges to the accounting industry. Outsourcing firms often offer higher salaries and better benefits than local firms, attracting a substantial portion of the talent pool away from the local market. Working with international clients provides valuable experience and exposure to global accounting standards, making outsourcing an attractive option.
Freelancing, on the other hand, offers flexibility in choosing projects, clients, and work hours, which is particularly appealing to younger professionals who prioritize work-life balance. This trend reduces the number of accountants available for traditional firm settings. Freelancers can command higher rates, especially when serving international clients, and technological advances enable them to work remotely, further diminishing the talent pool available to local firms.
“This reduces the number of accountants available to work in traditional firm settings. Many freelance accountants can command higher rates per project, especially when serving international clients,” Galang said.
“This financial incentive encourages professionals to leave traditional firm employment. With advances in technology, accountants can easily provide their services remotely, enabling them to serve a global client base without being tied to a particular geographic location, further diminishing the talent pool available to local firms,” he said.