How the Accounting Industry is Evolving in the Age of Coronavirus?

Accounting Industry

December 30, 2020

Accounting is an integral part of any business and it is the backbone of any financial Institution. It is a known fact that Coronavirus has created havoc around the world. Governments of various countries are providing some or the other relaxations or benefits for its citizens in this pandemic situation.

Accountants should also hone their communication skills and dialogue with clients about their changing needs as the volatile nature of coronavirus makes it difficult to prepare themselves for the current situation.

In regards to Accounting department, accountants have witnessed as much innovation in their industry in the last six months as there was in the previous six years and they must prepare a required strategy for the future. They can adopt the following steps to be in the competition:

  • - Customer is the king and that is something which every business should understand. The communication should be free flow and we need to resolve the concern of customers at the earliest.  The proper communication and demonstrating empathy are the surest routes to recovery when the crisis ends.
  • - For long-term operations, it will be better to move financial and business processes to a virtual environment to enable the company to function in an office-less condition.
  • - Improve responses to future crises and document gaps in contingency plans. The forward-looking business should not be caught flat-footed in the “next normal”.

In this pandemic situation, many companies were forced to speed up their digital transformation and it has benefitted them to work in cloud software. With flexible subscription and secure data storage, the ability to work remotely in real-time has proven to be game-changing. The deadlock of on-premise systems and single-license apps were broken through by cloud systems. To all authorized users, data becomes available around the clock.

Managers, accountants, bookkeepers, and clients can control and monitor the enterprise’s financial health by working from different locations and time zones. Accountants should consider switching to Cloud-based software ahead of any changes that can sync with their desktop. Also, instead of in-person, they should meet with clients over the phone or the Internet.

Digital transformation has driven the growth of many new businesses over the past decade and it is a fact that sole traders, freelancers and gig-workers are taking advantage of digital business models. The pandemic has helped these models to emerge and businesses are adapting to serve their clients in new ways. The number one reason for failing of small businesses is due to Cash flow. For small business’s economic survival, Accountants and bookkeepers have been critical and will play an important role in the recovery. The implications can be seen for payroll, solvency and perhaps survival if there is any slip or interruption in payments.

The ability to adapt whether it is an independent accounting firm or an internal resource, solve problems and communication will help to resolve the concern between you and your customers as you look down the yellow brick road together for the future.

CPAs must groom their soft skills to see their clients through these challenging times, no matter what technical solutions are in play, to maintain credibility with their clients.