COVID 19 brought a sweep of changes in the economies of the world, something that was not expected in the worst of economic situations. The concept of ‘being virtual’ gained immense strength in just overnight. People stopped going to work and started working from home; students stopped going to school and started attending online classes; the conferences, workshops, networking events, and others started happening online. The biggest change was that now the businesses had a new address: online. However, all these changes presented an opportunity for the business world to find out the new business tactics that can work wonders for their businesses and finally lead to growth. Furthermore, it is an opportunity for individuals and businesses to rise to the occasion and provide the required support to the business community to navigate their way out of the COVID 19 storm.
Accounting, auditing, and tax compliance will remain the key activities for any company, and therefore, they will always remain in demand. Besides the basic services, it is significant for the professional accountants and accountancy firms to adopt business strategies that can improve the way they support their clients. During these uncertain times of the pandemic, they can help the businesses to stay afloat. We shall look at some of the ways in which professional accountancy firms can assist the businesses in their survival strategy:
The Resources page on the website
CA firms can create a resources page on their website, including information on the latest news of COVID 19, necessary checklists, important tax-related deadlines that have been extended, and any policy changes introduced by the government that may benefit or harm them. Accountants can provide businesses with the required guidance and advisory services to assess these policy changes, aid programs, and benefits. This page should have relevant links, articles, podcasts, and videos that can provide them the required support in business operations, thereby generating value.
New solutions for businesses
Accounting firms can bring in new cloud-based accounting solutions that can automate all the accounting and tax-related tasks of businesses. Such solutions will help businesses to ensure that no problems arise in accounting activities and tax-related submissions due to the remote working of employees.
Accounting firms can provide offers to customers by combining their key services in a package. This will help the businesses to get access to these services at a better cost and enable you to leverage such trusted relationships for increased services. In addition, it will keep on the trust that businesses have in their accountants even in the times of remote working and inactive engagement.
Assistance in immediate business survival tactics
CA firms can assist their clientele with few immediate measures that can ensure their survival in the current times. Some of these tactics include:
- Check for any financial aid options available for any business sector and access these measures
- Check their insurance options and eligibility for any financial losses
- Assess their cash flow forecasts to understand the impact on sales and their ability to pay off their debts and suppliers and make changes accordingly so that a big burden does not fall on them later
- Assess their cash flows to identify lucrative and non-profitable customers of businesses
- Study the business model and supply chain of businesses and analyze them to understanding the painful functions and make changes for the better
- Identify the supplier contracts, customer agreements, leases, or loans that can be renegotiated for better terms or benefits
- Assess the financials of the businesses such as debt, inventory, and profitability ratios and ensure that these are updated
- Find out any extension of deadlines for tax payments, returns filing, or any other accountancy-related process and make them understand the long-term positive and negative impact of deferring it
- Provide them negotiation skills to get a discount in the amount of debts, if they are paid early
- Supervise the situation of clients on a continuous basis and suggest better ways or new initiatives that can bring a change to their business
- Review their current financial condition and develop forecasts to comprehend the possibility of their survival in the immediate future; if not good enough, accountants can help businesses with a less hurting insolvency strategy
Planning is what accountants do best. Based on the current financial situation of the business and the economy and the impact of some factors, professional accountants can help businesses in budgeting. Each of these budget items can be understood along with their financial implications to aid the decision-making process. Therefore, accountancy firms can help businesses to identify the right strategy and help them in the execution of the strategy for better insulation from the shocks.
In these unfortunate times, when the end of COVID 19 is not visible, the business community must work together to save the economy before it is doomed completely with no recourse. Therefore, businesses must lift their spirits and develop a positive approach and mindset to come out of the dreadful situation at hand. The experienced and knowledgeable accountants, auditors, and taxation experts can help the businesses to deal with these challenging times.
NR Doshi and Partners is a reputed name in the chartered accountancy, audit, and assurance industry. Our wide knowledge and rich experience in various industries and service lines make us a preferred partner for businesses. We provide a culmination of cost-effective services, a client-oriented approach, customized solutions, transparency in work, and timely and updated services.
The COVID 19 has brought in a new ‘normal’, and we are helping our clients adopt the new ‘normal’ and make it a habit for growth in the near future. We are the trusted advisors and skillful accountants that will help you to deal with this crisis effectively. We are providing the required assistance to our existing clients and are ready to help any potential clients to sail through these uncertain times.