Last updated: 07 Sep 2023 03:00 Posted in: AIA
By Sanjay Rughani, Chair of the IFAC Professional Accountants in Business Advisory Group
With the myriad of opportunities available to accountants across positions, locales, and sectors and with the ability to progress in many different roles, accountancy is a passport to meaningful and rewarding careers in both the private and public sectors. This was the theme of the latest meeting of IFAC’s Professional Accountants in Business Advisory Group (PAIBAG) held in New York City, which convenes a global and diverse group of professional accountants working in a variety of leadership positions in business and the public sector.
Over a fantastic 2-day meeting, our discussions focused on the long-term value accountants create and the positive impact they have. We heard how finance leaders and their teams are elevating their strategic and value contributions to both the organisations they work for and to wider society. By enabling digital transformation, connecting organisational goals to corporate sustainability targets and the sustainability development goals (SDGs), and by helping to manage short and long-term trade-offs, professional accountants are contributing to more resilient and sustainable organisations and economies.
We explored five critical priorities for the profession which provide exciting opportunities to those choosing accountancy career pathways in business or the public sector.
1. Championing organisational sustainability agendas including how accountants in CFO, finance function, controller, internal audit, and treasury positions are facilitating net zero transitions, supporting climate risk management, and helping organizations prepare for mandatory sustainability-related disclosure and assurance requirements.
Lynda Heywood, Group Treasurer, Tesco, a leading multinational retailer, highlighted how Treasury is involved in actions to deliver Tesco’s commitment to be carbon neutral across Group operations by 2035 and net zero across the full value chain by 2050. For example, Treasury has delivered sustainability-linked financing in the form of a revolving credit facility and sustainability-linked bonds. In addition, as 90% of Tesco’s emissions footprint lies within its value chain, Tesco, in partnership with various banks, has become a leader in supply chain finance to reduce indirect scope 3 emissions by linking funding costs for suppliers to sustainability performance.
Yulanda Chung, Head of Sustainability for Institutional Banking Group, a Singapore DBS Bank and the largest bank in Asia by assets, shared its 2050 net zero commitment and how it is actively shifting its portfolio to work with companies in 9 sectors to establish decarbonization pathways that bring about science-based emissions reduction targets and improve data to better target investments in solutions.
Cindy Ngan, a Partner in Climate and Sustainability at PwC Hong Kong, highlighted the links between achieving net zero at the same time as achieving other sustainable development goals. She also outlined PwC’s framework for helping companies think about the key elements for success on a net zero transformation.
2. Transitioning the role of Chief Finance Officer (CFO) to Chief Value Officer (CVO) for increased organisational value by embracing realities of our environment that impact businesses, shifting the corporate conversation towards long-term strategic value creation and optimising the opportunity to positively influence all key stakeholders.
For finance professionals to transition to CVOs, championing an integrated mindset is key. The integrated mindset leads to a comprehensive multicapitals approach to planning, measurement and reporting, and connects the business model to all relevant value drivers. Bikash Prasad, Group CFO of Olam Agri, highlighted what this evolution involves for the finance team in Olam, as well as Olam’s approach to engaging and inspiring their finance professionals. For further insights on Olam’s journey, see: The Transition to a Chief Value Officer – An Opportunity for Finance and Accounting Professionals.
One of the biggest barriers to professional accountants elevating their role as strategic business partners is developing leadership and professional skills. Accountants can often prioritise developing their technical skills and focus less on acquiring the skills needed to influence and become effective finance business partners.
3. Evaluating finance talent models and career pathways, particularly in Global Business Services (GBS) and Finance Shared Services (FSS) which are large employers of accountants worldwide.
We explored GBS and FSS career pathways and opportunities. FSS and GBS are moving to new operating models that leverage automation and digital tools and the creation of end-to-end processes based on employee and customer lifecycles to create higher levels of value. As they transform and increase their scope, there is a need for accountants to become process owners who are experts in different areas and who can foster continuous improvement.
4. Expanding the global pool and attractiveness of the professionto meet the fast-growing demand of the corporate world by encouraging collaborative professional apprenticeship programs to be developed and implemented globally to support access into the profession.
As accountants, we know firsthand the benefits the profession provides, and we are gathering insights from our global community on how to ensure others understand the value, impact, and ability of accountants to become influencers and leaders in organisations.
We discussed how professional apprenticeship schemes can be developed to meet the demand for practical finance and accounting skills such as the Apprenticeship for Finance Business Partners program launched by the AICPA and registered with the US Department of Labor. Apprenticeships increasingly provide vocational professional upskilling opportunities that can meet the needs of economies and address talent management issues facing CFOs and their finance teams. Apprenticeships also provide more opportunities for those considering accountancy as a rewarding career pathway in business.
5. Supporting the growth of accountants in the public sector.Many jurisdictions at central and local government levels experience difficulties in finding suitable candidates with the right skills for finance and accounting positions.
To address these shortages, help drive public financial management reforms, and respond to the future needs of the public sector, there is an important need and opportunity to increase professionalisation in public sector finance, and to support public sector accountants with challenges such as corruption and intimidation.
To highlight the crucial role of PAOs in the public sector, we heard a case study from the South African Institute of Chartered Accountants (SAICA).
Milton Segal, SAICA’s Director of Standards, and Natashia Soopal, Executive in SAICA’s Ethics Standards and Public Sector, presented on their organisation’s efforts to enhance the marketability of public sector accounting careers and efforts to support and encourage the advancement of skills, knowledge and competencies to ensure SAICA members are positioned to contribute to the economic and social advancement of South Africa.
With the opportunities ahead of us, there has never been a better time to be an accounting and finance professional. In a complex world with growing variables, uncertainties and new business and economic dynamics, the growth, development, and evolution of the profession are critical to driving sustainable prosperity. After all, ‘accountancy’ is the global language for business, and we need to meet the increasing demands for finance and accountancy skills from our multiple stakeholders, including society at large.
This article originally appeared on the IFAC Knowledge Gateway. Copyright © 2023 by the International Federation of Accountants (IFAC). All rights reserved. Used with permission of IFAC. Contact permissions@ifac.org for permission to reproduce, store, or transmit this document.
"Embracing these five opportunities in accountancy is not just about career advancement: it's about shaping a sustainable and prosperous future for organisations and society as a whole.
"As a PAO AIA understands the rapidly changing role of accountants. Accountants have become catalysts for positive change, driving organisations to adopt sustainable practices, create long-term value, and contribute to the well-being of the global community.
"As we navigate through a landscape filled with uncertainties and evolving economic dynamics, the profession's growth, development, and evolution remain pivotal. 'Accountancy' isn't just a language for business; it's a force for positive change that responds to the increasing demands for transparency, sustainability, and responsible financial stewardship."
Philip Turnbull, AIA Chief Executive
