Reflection Paper 3 by Leader Oliver Pabillon

Reflection Paper 3 by Leader Oliver Pabillon

What can a Certified Public Accountant offer to the country, to the society? Compared to Doctors who help in the treatment of sick patients, Engineers who design and build structures or machinery, Entrepreneurs and Businessmen selling and providing goods and services to consumers, and Teachers who educate, what can a CPA like me do aside from counting numbers? What is passionate about being an Accountant? When the lecturer required us to make a reflection paper about leadership passion, I was a bit bothered about how this passion should reflect in my leadership as being an Accountant. Of course there is no doubt that apart of my being an Accountant, I am a father of two growing kids and a loving husband to a beautiful wife, where my passion about my taking care of my family lies. I will do just everything to keep them safe and provide all their needs (as any father passionately does). I will not talk much about my passion being a father since it is natural to every father out there. But aside from that, as an Accountant and a Leader, how will the passion reflect on my leadership and personality? I must admit it was only through this Leadership course that I learn about my passion as an Accountant and it is ironic that I am actually already doing it, I was just not aware about it.

An Accountant's Passion

There are only about 150,000 CPAs in the Philippines. A big chunk of this figure chose to leave the country to work abroad and pursue their career overseas. I was one of those who left our country to earn more. Passing the CPA board exam ironically does not assure an easy and instant success. We have to go through a lot of training and sleepless nights spent in client audits. I have experienced that during my eight years of work locally. Adding to that, the pay is not that competitive. A new board passer will only have a gross monthly salary average of between 12,000 to 15,000 pesos today. Although this is somewhat higher compared to a few years back but still is not competitive. A CPA with 5 years experience earns only about 25,000 to 35,000 per month. While overseas, a CPA would earn ranging from 80,000 to 250,000 pesos per month. This is the main reason why CPAs leave the country to earn more overseas.

I am a graduate of Guagua National Colleges in a small town of Guagua, Pampanga. After graduation in 1998, I applied for work in the City (Manila). As I remember, I went from building to building, one company after another, submitting my bio-data (resume). I pass the pre-employment exams and also the interview. But in the end I was not chosen for the job but instead the other applicants who have graduated from top universities are the priorities. In other words, they have an edge when applying for a job. That was a sad experience for me. I ended up employed by a manpower agency with just a minimum salary. I only worked for two years in Manila and decided to come back to Pampanga because my salary was just enough to pay for my monthly needs and give a little support to my siblings schooling. I had no savings at all. Then I was contacted by my college friend about their need for a CPA. I was hired and given the chance to lead a small group of accounting staff. It was my big break. My boss, who is also a CPA, had so much trust and belief in my abilities since we were both Kapampangans. She eventually became my mentor. During my stint with the company, I learned so much and was exposed to various assignments which further enhanced my skills as a CPA. I acquired knowledge about accounting systems and internal audit. But still the pay was not that competitive because our big bosses (the owners) are profit oriented. They do not share profits to their employees. That is why I decided in early 2009 to work overseas.

In 2011, after almost three years abroad, my former boss and mentor contacted me and encouraged me to go back here to start a partnership with her. I came back and we started a small professional partnership. We started with a few clients and slowly grew. We started hiring new CPAs and train them in such a way that they could practice the profession once they decide to practice on their own. Our salary scheme is on a per client basis so they have the tendency to earn more. Adding to this we also give profit sharing. As our partnership grows, they also grow. Aside from this we also hire new Accounting graduates from small colleges (those who are not from famous schools like the top universities) and train them thoroughly just like the same way we do to our CPAs. I saw the need for this when I realized and experienced myself on how hard it is to climb the ladder of success in this field if they do not have a CPA license o their name. During their stay we also allow them to review and take the board exam. To date, five staff have already passed the board exam while employed by our firm. While other accounting graduates we have trained after deciding to leave our firm have been hired by big companies locally and abroad. It showed that the training we exposed them to have become beneficial for them.

Training new staff and encouraging them about the profession has become my passion. Gladly, my mentor and now my professional partner share the same passion. One example I can share is a lady now on her mid twenties, when we hired her she was a new accounting graduate. We trained her for about a year then she left for a permanent job in Makati. Now she is the chief accountant of a securities trading firm and earning around 80,000 a month. Two guys on their early thirties who used to work with us are now working in an oil and gas company and automotive industry in the Middle East each earning about 100,000 pesos a month. Every year when they go for vacation here, they make sure to treat us and bring us nice pasalubong.

As an added value to our services, I implement accounting systems to clients with just a minimal fee. The usual fee for the implementation of an accounting system ranges from 40,000 to 80,000 pesos for medium enterprises. We only charge a fraction of that. It has become our advocacy to computerized the accounting systems our clients to make the work of their staff easier and thus have more time for themselves and their families. When I implement the system, employee overtime is minimized if not eliminated. To date there are already more than 200 clients which I have successfully implemented an computerized accounting system.

With regards to tax consulting, we extend to our clients the ethical and necessary mechanisms for them to file their correct taxes. We have learned that it is just a matter of educating business owners about the measures on how they could know their taxes. We do not encourage our clients to avoid the correct taxes.

So what else can a CPA contribute to the society? It is Integrity. In recent times the corporate world was shaken by some accounting scandals. Internationally, The Enron Scandal of 2001 where they kept huge debts from off their financial reports, the Lehman Brothers Scandal of 2008 where they hid over $50 billion in loans disguised as revenues, the Worldcom Scandal in 2002 where they inflated assets by as much as $11 billion; locally there is the audit scandal of Victorias Milling Co. in 2001 where there was deliberate attempt at misrepresentation to make the miller appear more efficient, BW Resources scandal, and Urban Development Bank to name a few. There were also tax evasion cases filed by the BIR to certain individuals whose financial statements and tax returns were audited by CPAs. Sadly it is also reported that CPAs themselves under declare their own income tax returns.

Our country needs accountants with integrity that help uncover fraudulent schemes and work towards preventing such from happening. Our society need honest professionals who play vital role in the economic development of the country. It is my advocacy to do the right thing. CPAs can provide excellent service to clients without compromising the quality and integrity of the profession.

This is the reason why I call for integrity, passion and right action. CPAs have a noble profession. It is time for us to work together to carry on the profession to a higher level. This is a continuing challenge.

It starts with me.

Leader Oliver Pabillon   Late Paper 2