Ways to solve the shortage of Filipino CPAs
- Merilyn Gomez-Cheng
- 2 days ago
- 3 min read
THERE is growing concern over the shortage of Certified Public Accountants (CPAs) in the country.
This column will try to paint a clear picture of the problem and how the Philippines can learn about solutions from other countries.
Statistics show there was a 41-percent drop in enrollment in accounting courses and a 35-percent decline in CPA board examinees from 2019 to 2023. The country has produced only 199,000 CPAs in the past 100 years, an indication of slow growth in the profession.
Another reason for the talent shortage is that Filipino CPAs are drawn to offers of better pay and work-life balance abroad, or working remotely for foreign companies.
Outsourcing firms continuously pull talent away from local firms with offers of higher compensation, benefits and flexible work arrangements.
The shortage is affecting the financial health of small and medium enterprises (SMEs), and further restricts the capacity of firms to take in new clients.
Accelerating the talent gap is the retirement of senior accountants. With the increasing educational challenges of nearly-retiring-age accounting teachers and the stringent accreditation requirements for those still active, we can only expect to lose more CPAs in the near future.
The CPA shortage isn’t just a professional dilemma, but a chain reaction that affects the country’s economy and education, as well as the public’s confidence.
SMEs struggle to grow due to lack of financial guidance and compliance support. Local firms turn to non-CPAs, risking quality and regulatory compliance.
High employee turnover continues to restrict the capacity of firms to get new clients, thus, slowing business expansion.
But while these challenges continue to widen the shortage gap, there is hope if regulators and stakeholders take every opportunity to learn what other countries are doing to rebuild the accounting pipelines.
For example, the United States has taken bold and creative steps to revamp its system of accounting education and revolutionize remote work and technology adoption. The American Institute of Certified Public Accountants (AICPA) is working with schools to introduce accounting earlier in high school and make the curriculum more engaging.
Firms are hiring globally and offering flexible work setups to reduce burnout and expand the talent pool. CPAs are allowed to focus on strategic work and let automation and AI streamline other tasks.
The Canadian government provides funding to boost accounting education and streamline CPA certification. Firms are offloading routine tasks to external providers and investing in AI tools.
Aside from offers of better pay and remote work, mental health support also helps retain talent in the workplace.
Skilled migration is one of the notable reasons why Australia is a work haven for CPAs. There are firms that run traineeship programs for undergraduates.
Australian CPAs enjoy advisory roles as offshore talent handles the routine compliance work. Better overtime policies and a shift toward hybrid work arrangements attract younger professionals.
For the Philippines, it is about redesigning the system. Accounting education and licensure can be modernized through experiential learning and apprenticeships as alternatives to traditional classroom hours.
There is a need to establish a competency-based licensing framework to prioritize skills over seat time in colleges and universities.
Another way to fill the gap is to rebuild company culture by investing in mentorship programs, prioritizing mental health resources and creating clearer career path opportunities.
Most of all, we need to tell a better story, reshape public perception and highlight the prestige of our work as Filipino Certified Public Accountants.
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The author, a member of the media affairs committee of the Association of Certified Public Accountants in Public Practice (Acpapp), runs the Merilyn Gomez-Cheng Accounting Office. She also chairs the BS Accountancy program of the National University Bacolod.
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