The COVID-19 pandemic has caused one of the biggest economic downturns since The Great Depression. Day-to-day accounting procedures have been disrupted majorly. As we've entered into Q2, the markets have shown some improvements. However, these improvements have not yet trickled down to small businesses. So how can accountants be resilient and learn to thrive in an economy that is still suffering?
It's critical for accountants to shift their focus on profit & loss to improving liquidity, especially with activities like accounts payable and accounts receivable. This will go a long way with conserving cash. It's important to secure cash flow in the short term.
The business environment is shifting rapidly, but there are many resources and leniencies being offered by the government, banks, and other organizations. Accountants must be aware of the resources that are available and take advantage of them.
Accountants depend on accurate and timely information that flows in from other departments in the company. This information allows them to create periodic financial statements. The pandemic has presented organizations with unique difficulties, however, including disruptions and absenteeism in all departments. This may cause delays in information. Accountants much be agile as it may be difficult for them to access the information they need when they need it.
Take advantage of technology
According to a survey Gartner conducted in 2019, 70% of organizations plan to utilize technology (automation tools, artificial intelligence, other cloud and Saad products, etc.) to assist productivity among employees by 2021. This is a crucial time for accountants to take advantage of these technologies and engage in innovation. The automation of certain accounting tasks may assist accountants tremendously in doing their jobs.
Understand all aspects of your business
It's critical for accountants to have a comprehensive understanding of their business, not just their role in accounting. Understanding the flow of information from operations to supply chain management to accounting is imperative to improving the accounting cycle. Accountants may need to implement additional processes and tasks to become proactive as opposed to reactive.
Do you have the right people?
As a business owner, the most important aspect to having an accounting department that runs smoothly and efficiently is hiring the right people. firstPRO has over thirty years of experience staffing positions within accounting and finance, and we know what to look for when seeking an accountant that will be successful. Please contact us to learn more.