The Institute of Singapore Chartered Accountants (ISCA) has published a strategy paper outlining how Singapore’s small and medium-sized accounting practices (SMPs) can adapt and expand amidst increasing competition, talent shortages, and rapid technological change.

The paper highlights a sector that plays a vital role in supporting Singapore’s business ecosystem, especially small and medium-sized enterprises (SMEs). Of the 761 accounting firms in Singapore, 98% are SMPs with 100 or fewer employees, and about 70% are micro practices with 10 or fewer staff.

Although accounting firms in Singapore are numerically dominant, they still face structural challenges. Many operate independently, struggle to attract qualified professionals and to keep pace with new technology. Industry data cited by ISCA shows that while SMPs constitute the majority of firms, they account for only about 15% of sector revenue and employ roughly a quarter of Singapore’s accounting workforce.

To tackle these issues, ISCA’s Strengthening SMP Taskforce has proposed five recommendations to help firms achieve greater scale and long-term sustainability and move away from working in isolation.

The first key point involves building a stronger graduate talent pipeline. ISCA has called for pilot placement programs with universities and industry partners to introduce graduates to careers in smaller practices, supported by clearer career pathways and development opportunities.

The second key point is the introduction of a digital badge framework. Under this system, SMPs could display recognized credentials and areas of expertise, making it easier for businesses and job seekers to identify high-quality providers.

The third recommendation encourages SMPs to pilot new technology solutions to improve productivity and streamline routine tasks, while collaborating more closely through shared services models to ease manpower constraints.

Next, firms should utilize internationalization more often. ISCA recommends greater participation in overseas professional services centers, which could help firms access new markets and stimulate demand for Singapore-based accounting and advisory services.

Finally, firms should focus on developing talent over the long term, including closer cooperation with educational institutions and partners to create more structured progression routes within the sector.

“The SMP sector is a vital pillar of our business ecosystem. Yet many firms continue to operate in isolation amid mounting pressures on margins, talent and technology,” said Koh Wee Kwang, ISCA council member and co-chair of the Strengthening SMP Taskforce. “This road map is about helping SMPs move from survival to strength, through scale, collaboration and a shared vision for the future.”

According to the ISCA, implementing these proposals will help position and adapt SMPs to the evolving sector environment. Firms will be able to adopt new technologies, attract and retain talent and strengthen Singapore’s standing as a regional hub for professional services.

The strategy paper outlines targets for the next decade, emphasizing the creation of higher-quality jobs, deepening professional expertise and maintaining a steady pipeline of accounting talent to support Singapore’s growing SMEs and startup community.