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SINGAPORE: Businesses in Asia are struggling to groom enough chief financial officers (CFOs) to meet the changing needs of the marketplace.
This is according to a survey of 200 companies last year, conducted by the UK-based Chartered Institute of Management Accountants (CIMA).
The study showed that there is a lack of CFOs who are adept in new areas such as capital allocation and building brand equity to meet the demands of the modern day business.
Dr Martin Fahy, Director of Development, Asia Pacific, CIMA, said: "In the past, accountants were focused on product costs, budgeting and controlling costs. Corporations are increasingly about ideas, innovations and branding. So accountants need to understand things like brand strength, brand equity and decisions on media purchasing.
"They also have to understand capital allocation with respect to innovation, research and development, and product development. These areas are where the big ticket capital allocation is and we need to change this profession to support those issues."
The survey found that 52 percent of companies in Asia do not have full confidence in their current financial and accounting staff, largely due to the changing role of the CFO.
The survey also showed that a majority of companies named budgeting, forecasting and financial analysis as their chief concerns in the financial arena.
In comparison, less than 25 percent were concerned about reducing financial costs, governance and compliance.
Going forward, experts said companies have to be more innovative in recruiting and retaining talent in the accounting profession.
The challenge in the profession is to attract people with softer skills sets and business knowledge, who can be groomed into future CFOs.
Three-quarters of those surveyed said improving the capability of their financial and accounting staff is their key objective for the next three years.
- CNA/so
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