IMPORTANCE OF ACCOUNTANTS NOW AND POST-PANDEMIC
COVID-19 has already had a significant impact on many people and businesses. As the current situation continues, more people and businesses may experience situations often associated with a decrease in job losses cash flow problems. Continuation of this liquidity downturn could result in an even broader business downturn, which could have a prolonged negative impact on a business’s financial well-being.
COVID-19 pandemic has highlighted the important role of accountants and business advisors more than ever. Qualified accountants can certainly help businesses survive and assist them to get back on their feet.
Businesses certainly need a trusted advisor who will be able to help them achieve their short and long term plans now and post-pandemic. The primary focus of an accountant will be on how to improve your business.
This is a role beyond the standard tax compliance task. The main focus will be on the business financial position to ensure dynamic and strategic decisions are being made now. This requires re-evaluation of short-term financing and continues with capital investment decisions.
In the short-term, the main requirement for a business is liquidity and securing cash-flow. Some other events that requires immediate attention is the lease extensions and renewals with new terms.
Accountants as trusted advisors, understand their business beyond their role in accounting. They know how information goes from business operations to supply chain management to business and financial planning before arriving at accounting.
During this uncertain times, accountant revise financing options, and capital investment and implement additional measures, tasks and processes to pivot from being reactive to proactive. They will shoulder a great deal of the responsibilities of getting many of businesses back up and running.
Businesses are encouraged to keep in touch with their accountants regularly throughout the year to keep them informed of their company’s affairs. This regular contact most likely builds into a strong working relationship whereby accountants know clients’ affairs intimately – almost as well as their clients– and are well placed to act according to clients’ best interest.