SA Chartered Accountants confident about their profession

Chartered accountants in South Africa (CAs(SA)) remain more confident about the future of their profession than other professionals in the country, according to the results of a new survey conducted by PPS.

The survey of more than 600 CAs(SA), who are PPS members, revealed a confidence level of 87% in the future of their profession over the next five years, with 85% of respondents revealing that they would encourage their children to enter their profession – both results being higher than all seven professions* that were surveyed.

According to Gerhard Joubert, Head of Group Marketing and Stakeholder Relations at PPS, the financial services provider focused on graduate professionals, it is very pleasing to note that CAs(SA) remain confident in their profession, as there remains a severe shortage of such skills in South Africa.

“The skills shortage we currently face is not just a South African problem; it is a global issue, so it is very positive to note that CAs(SA) in South Africa remain positive about the opportunities available to them in their profession locally.”

“The confidence of the CAs(SA) in their own profession who took part inthe PPS survey mirrors the confidence that the world has in the quality of South African CAs(SA),” says Willi Coates, Senior Executive: Marketing at The South African Institute of Chartered Accountants.

“The World Economic Forum, Global Competitiveness Report 2011/2012 rated South Africa No 1 for its strength of Auditing and Financial Reporting and this is an indication of the high regard that exists for the skills and experience of our members. This is an accolade the CAs(SA) can be justifiably proud of given the significant role that they play in the economy of South Africa as accountants, advisors, auditors and business leaders”, said Coates.

The survey also revealed that only 10% of respondents believe current tax incentives by the government are sufficient to encourage South Africans to save, while 69% said compulsory preservation was necessary to enforce South Africans to save. “National Treasury’s retirement savings overview that was published in May showed that the government is proposing to phase in the preservation of retirement savings. While the discussion paper is still yet to be published, it is positive to note that such concerns are being addressed.”

Other results from the survey showed that CAs(SA) remain concerned about a number of issues such as crime and unemployment with confidence levels that these would improve over the next five years being just 48% and 42% respectively.

Confidence in the standard of education in South Africa improving over the next five years scored marginally higher at 49%. However, 93% of respondents said they were concerned about the lack of mathematics and science graduates in South Africa, while 90% said they were also concerned about the rising cost of tertiary education.

One of the biggest concerns facing CAs(SA) is the future of the healthcare system, with the survey showing a confidence level of just 31% on whether it will be improved over the next five years. “This reflects the concern among this segment of the introduction of the National Health Insurance (NHI) initiative, with 88% saying it is not the solution to fix the country’s ailing health system.”

“This survey has revealed that CAs(SA) remain very positive overall in the future of their profession but with concerns on issues such as health and education remaining prevalent it is important government also recognises that these important issues are addressed,” concludes Joubert.

Other results from the survey conducted among CAs(SA):

· Confidence that their profession can maintain ethical business standards was 71%

· Confidence that professional ethics still prevail in the profession scored 65%

· Confidence in their ability to earn an income that keeps up with inflation was 77%

· Confidence in the economic outlook for South Africa over the next 12 months was 63%

· Confidence in the outlook for local equity / share markets was 65%

· Confidence that they have saved enough to retire was 64%

* Advocates, Attorneys, Chartered Accountants, Dentists, Engineers, Medical and Pharmacy