Working norms for all professions, including accounting and finance have changed as the world experienced Covid-19. The global economy suffered an adverse turn, so did businesses all around the globe. Even though things are settling down and we are coming to our normal regimes, but the repercussions it has caused will take time and a lot of efforts to bring prosperity, especially on the individual level.
Economies and businesses are gathering themselves to start their journey towards the recovery phase but with the new normal; accountants’ along with other working professionals have an important role to play.
Looking into the financial & accounting side of things, and the uncertainty looming at many levels; accountants and finance professionals will be required to step up and contribute towards rebuilding the businesses with SKANS ECampus. Here are some of the keys we will need to watch out for moving forward:
Evaluating the risk at each stage is the most important responsibility of auditors, which enables them to assess the level of risk that could lead to material misstatement. With changing business dynamics, risk assessment is redefining. The importance of sustainability reporting increase so does the risks associated with them as companies adopt sustainable models of operations.
Accounting professionals would be required to reassess the material financial changes focusing on the debts and financing, ACCA Study Support (PM – AAA) – SKANS ECampus alongside potential breaches of the financial covenants.
Be it the financial or non-financial risks associated with environmental, social, and governance matters or with procurement, manufacturing, or sales all shall be assessed for risk under the sustainable operational model.
Many businesses were unable to survive the financial burden of Covid-19 due to limited budgets. The uncertainty has caused businesses to think on the lines of bringing flexibility to their financial planning. Both Suppliers and customers are facing cashflow challenges, here the cashflow planning must be carefully done, with flexibility but at the same time realistically, which can help mitigate the cashflow issues.
To stay in business many organizations focused on cost-cutting techniques, here with the help of accountants as they could assess and take effective cost-cutting measures and perform efficiently. With the help of expert accountants, organizations can develop reliable forecasts that will be flexible to cope up with events that come in the future.
Something that we all have learned during this pandemic, is the importance and need for information technologies in our lives. Not only for businesses, but information technology has also contributed towards nourishing individual minds as well.
Apart from incorporating information technology to assess the industry oversight, organizations can understand the consumer spending patterns and their effect on the economic trends. With a targeted audience, promotional costs can be cut down and be focused on using social media. Followed by the insights from social media, organizations can evaluate the trends and reassess the set measures for better results.
Accountants’ expertise together with information technology, can help organizations set achievable targets and produce effective results while reducing the costs from the real-time generated results.
There is no doubt that with advanced technology the world is moving towards automation but, we cannot deny the importance of the human element. Organizations are built with the people involved in them at different levels of hierarchy.
It has become important for organizations to ensure that they take the extra step to ensure the health and safety of their employees, following the Covid precautions.
It has become vital for accounting professionals to not just ensure the precautions are taken but, also required to enhance the effectiveness of communication with stakeholders. With changing requirements and assumptions, it is important that you are well aware of the stance of key stakeholders and effectively contribute towards the achievement of objectives set under the new evolving sustainability models.
On the whole, being a practitioner of accounting, the responsibility of keeping an eye on the changes in macroeconomic trends and their effects lies on you. With changing business models, accounting and finance professionals are expected to keep themselves updated with the new horizons and contribute towards the recovery of businesses and economies while focusing on sustainability.
Ifrah Taseer is an academic mentor and has experience in mentoring and counseling many candidates over the years. She is an ACCA Exam Tips for Pandemic Era – SKANS ECampus qualified and holds a degree in Finance and Accounting from OBU alongside Business Management from King’s College London. Her journey as an author began in 2005, since then she contributor the educational sector with her experience.
