"THE Teachers We Need for the Education We Want: The global imperative to reverse the teacher shortage," was the theme for this year's World Teacher's Day.
Recently, I had the privilege of attending another highly successful event, the "Accounting Educators' Seminar for Innovative Learning," organized by Elevate Success Inc. in collaboration with Paguio, Dumayas and Associates, CPAs. The experience was invaluable, particularly because the attendees were all accounting educators committed to expanding their knowledge and understanding of the current state of the accountancy program in the Philippines, as well as exploring innovative approaches that will shape the future of our profession.
In light of this, an important question arises: Is the Philippines, in this post-pandemic era, adequately prepared to produce the next generation of high-caliber accounting professionals?
As of 2024, detailed insights into the state of accounting education in the Philippines are provided by government institutions such as the Commission on Higher Education and professional organizations like the Association of CPAs in Public Practice (Acpapp).
Accounting remains one of the most sought-after degree programs in the country, with significant enrollment rates, particularly in urban centers like Metro Manila, Cebu and Davao. However, this popularity is not without its challenges.
Historically, CPA board exam passing rates in the Philippines have ranged from 20 percent to 35 percent. Despite an annual graduation rate of approximately 10,000 to 12,000 students from Bachelor of Science in Accountancy programs, only a fraction would take the CPA exam immediately, because most are deterred by financial constraints or apprehension about passing on their first attempt. Of those who do sit for the exams, only around 3,000 to 4,000 pass the exams annually, contributing to a shortage of licensed professionals in the field.
This shortage is particularly felt in key industries such as banking, auditing and taxation, where the demand for newly licensed CPAs far exceeds the current supply. In fact, many Filipino CPAs are highly sought after internationally, with countries like the United States, Canada and Australia actively recruiting due to the strong foundational skills of Filipino accountants. As of 2024, approximately 10 percent to 15 percent of newly licensed CPAs are expected to seek employment abroad, further exacerbating the local shortage.
The evolving landscape of accounting education in the Philippines reflects both promise and obstacles. The ongoing low CPA pass rates and financial barriers highlight areas requiring immediate attention, while efforts to modernize curricula and make education more accessible through digital platforms are steps in the right direction. The demand for accounting professionals, both domestically and internationally, remains high, underscoring the need for continuous improvement in the education system.
However, there are other broader challenges. Automation, artificial intelligence and data analytics are reshaping the profession, yet many schools struggle to integrate these technologies into their curricula. This leaves graduates who are potentially ill-equipped for a job market that increasingly values proficiency in advanced software and data analytics.
Moreover, while these modern skills are critical, the importance of fundamental accounting principles cannot be overstated. Educators must strike a delicate balance between teaching core accounting competencies and incorporating newer, technology-driven content. Overemphasis on technology risks undermining traditional skills, while a singular focus on traditional methods may leave graduates less competitive in the digital economy.
The shift to online and hybrid learning models, accelerated by the pandemic, also poses challenges, particularly for courses requiring hands-on training and collaboration. Students may miss out on essential elements of their education, such as practical experience and mentorship, which are vital for their professional development.
There is also a growing gap between what is taught in universities and the practical skills employers seek. While graduates are well-versed in theory, many lack the soft skills such as communication, teamwork and problem-solving that are necessary to thrive in the workforce. This disconnect can hinder their ability to secure employment and excel early in their careers.
Furthermore, Filipino accounting graduates must compete on a global stage where international firms demand familiarity with both Philippine Financial Reporting Standards and International Financial Reporting Standards. This adds another layer of pressure on both students and educators to broaden the scope of their educational offerings.
These challenges point to the urgent need for reforms in accounting education, including better integration of technology, improved accessibility, financial support for students and closer alignment between academic programs and industry requirements.
As the accounting profession continues to evolve, students in 2024 face a demanding journey. They must develop a diverse skill set encompassing both traditional accounting knowledge and modern technological proficiencies.
Despite the hurdles — ranging from financial constraints to the mental health challenges of an increasingly competitive job market — these obstacles also present opportunities for innovation and growth as students prepare to enter the dynamic field of accounting.
A heartfelt salute to all accounting educators who challenge their students with rigorous exams, continuous assignments, unexpected quizzes and countless projects. While these tasks may seem overwhelming at the time, their true value becomes evident when you enter the corporate world.
Rigorous exams? The fundamentals are taught, but applying them in real-world scenarios is far from basic. Continuous assignments? Deadlines are part of our system, and those who can't bear the pressure of deadlines never experienced them in the first place. Unexpected quizzes? They simulate real-life challenges that can arise unexpectedly, teaching you to think on your feet and manage unforeseen issues. Countless projects? The paperwork and deliverables in the professional world can be daunting but mastering them is key to professional growth and personal fulfillment.
As we celebrate World Teachers' Day this October 5th, take a moment to show your appreciation to the educators who helped shape your path. Their dedication and tough love prepared you for the real-world challenges that lie ahead.
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Ken John B. Asadon, CPA, CTT, MBA, is a tax partner of Paguio, Dumayas & Associates, CPAs (PrimeGlobal Philippines), an institutional member of the Association of CPAs in Public Practice (Acpapp). The opinion of the writer does not reflect in any way the opinion of these institutions.
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