TAKEAWAYS
Small and medium-sized accounting practices (SMPs) have long been a vital pillar of Singapore’s accountancy ecosystem. They serve as trusted advisors to countless SMEs, supporting compliance, growth, and business decision-making across the economy. Yet, the reality is that the operating environment for SMPs is changing rapidly, shaped by talent shortages, rising regulatory expectations, technology disruption, and increasing competition from larger, more resourced firms.
Recognising these challenges, ISCA, together with the Strengthening SMP Taskforce, has released a Strategy Discussion Paper (the “Paper”) to spark constructive conversation about the future of the SMP sector. The paper is not a prescription, but a call to reflect, adapt, and take collective action.
Many SMPs remain small not because of a lack of ambition, but due to a combination of structural constraints and deliberate choice. Independence, close client relationships, and manageable risk profiles are core strengths that many practitioners value deeply. These attributes should be preserved.
At the same time, operating in isolation is becoming increasingly risky. Talent attraction is more challenging, technology investments are harder to justify individually, and visibility in the market is often limited. Larger firms, despite facing similar talent shortages, are generally better positioned to adapt quickly, scale hiring when conditions improve, and leverage technology and branding to move downstream into the SME space.
The Paper does not advocate consolidation as a one-size-fits-all solution. Instead, it presents alternate pathways like collaboration, shared services, alliances, and mergers, allowing firms to choose approaches that best suit their goals and stage of development.
The emphasis is on openness – openness to work with peers, share resources, and explore new operating models that strengthen resilience without compromising professional values.
ISCA’s role is to act as an enabler of the right environment for transformation. This includes convening key stakeholders, firms, professional services providers, potential investors, corporate finance advisors, and funding institutions to facilitate dialogue, partnerships, and informed decision-making.
One key recommendation is the strengthening of shared-services ecosystems, supported by clear quality frameworks, targeted training, and stronger links with regional Institutes of Higher Learning. Done well, shared services can help firms improve efficiency while maintaining quality and professional standards.
Another important focus is visibility. Many businesses and young professionals are unfamiliar with the breadth and capabilities of SMPs, often defaulting to larger firms due to brand recognition.
To address this, the Paper proposes expanding the use of the Professional Services Centre Directory, maintained by ISCA and the Alliance, alongside the introduction of a digital badge-based recognition system. These badges would recognise firms for excellence, compliance, specialist capabilities, innovation, and workforce development, helping firms differentiate themselves while encouraging healthy competition and continuous improvement across the sector.
As Singapore encourages SMEs to internationalise, SMPs must be equally equipped to support their clients’ overseas ambitions. Through the Alliance, overseas Professional Services Centres (PS Centres) have been established in key markets such as Shanghai and Ho Chi Minh City.
These Centres are intended to provide trusted platforms for connectivity, knowledge exchange, business referrals, and on-the-ground support, enabling SMPs to “hunt as a pack” and extend their reach beyond Singapore.
Artificial intelligence (AI) and automation will continue to commoditise routine compliance and back-office work. However, assurance and advisory services remain deeply human, reliant on judgement, communication, trust, and deep client understanding.
This shift presents an opportunity for SMPs to redefine their value proposition, focusing on higher-value services where professional insight truly matters. The Paper calls for greater collaboration between practitioners, technology providers, and innovators to co-develop solutions that go beyond digitising old processes and genuinely transform the way work is done.
Ultimately, the Paper aims to provide a foundation for engagement, to challenge the status quo and empower firms that wish to progress. The future of the SMP sector will not be shaped by any single recommendation, but by a collective willingness to adapt, collaborate, and invest in long-term sustainability.
ISCA looks forward to continuing this conversation with practitioners and stakeholders, both locally and internationally, and to working together to ensure that SMPs remain strong, relevant, and indispensable to Singapore’s business ecosystem.
Read the full Strategy Discussion Paper here: Strategy Discussion Paper for Strengthening SMPs
Isaac Kuan is Associate Director, ISCA Professional Standards & Advocacy.
