In a post-COVID world, CPAs can become an organization’s GPS
CPAs can help organizations reconsider their business models to determine whether they are scalable and sustainable (Getty Images/Adam Hester)
Throughout the pandemic, many CPAs have played a major role in helping the organizations they serve to survive—and even thrive—in an environment that put them to the test like never before. Now, as the recovery from COVID-19 gets under way, CPAs will be no less pivotal in helping organizations explore rebuilding strategies and put best practices in place for the road ahead. As FCPA Richard Morrisseau, co-founder of Blue Mind Business Squad, puts it, “In this new world, accountants can and should become an organization’s GPS.”
Here are a few ways CPAs can help lead organizations into the future.
REVISITING STRATEGY
COVID shook many businesses to their core, changing traditional customer bases and uprooting supply chains almost overnight.
Given the amplitude of the COVID-induced changes, it’s important for organizations to revisit their strategy to see if it still makes sense. “Normally you would do this at least once a year, but you should do it as we emerge from the crisis as well,” says Morrisseau.
CPA Jamie L. Smith, co-founder of Amplify Advisors and a panelist for a session on re-imagining the workplace of the future at The ONE Conference + Expo in September, agrees. “Whether the organization performed really well during COVID-19 or whether it struggled, revisiting strategy is the first thing it needs to do. And CPAs can put numbers on the strategy to see if it makes sense financially.”
REVIEWING BUSINESS MODELS
CPAs can also help organizations reconsider their business models to determine whether they are scalable and sustainable. “During the pandemic, businesses often made pivots just to maintain their employee base or to keep cash coming in the door,” she says. “But those pivots look very different when you consider them in the context of a long-term strategy.”
As an example, Smith points to e-commerce. “Many organizations shifted their offerings online, whether they be conferences or training or retail,” she says. “Now, they need to look at those shifts and ask, ‘What processes do we need? What people? What kind of automation? Or should we be doing away with that model?’ As difficult as it may be, companies need to take a look at all the services and products they offered over the past few months and make those decisions. And CPAs can help by considering their options through a financial lens.”
MAINTAINING A FUTURE FOCUS
In the COVID-19 world, CPAs became much more future-oriented than they previously had been, says Smith. “Many of us got used to doing rolling forecasts as a matter of course,” she says. “Now, we have to make sure we don’t go back to concentrating on historical budget costs.”
Morrisseau agrees. “Some CPAs are still focused just on making sure they have the proper controls and budget in place, and that the financial statements are OK. But they need to do more. They need be able to offer a six-month or a 12-month or two-year vision. They need to be able to see in advance when the organization is going to need cash or when it’s going to need financing. That’s what organizations expect.”
RECOMMENDING GOVERNMENT PROGRAMS
Given the number of government programs that were introduced during COVID-19, many CPAs became more involved in exploring them for clients. And this is a best practice they should maintain, says Smith.
“COVID-specific programs will be phased out eventually, of course, but governments have always offered numerous opportunities in the form of grants or low-interest loans with few strings attached,” she says. “Often, this money gets left on the table because no one wants to take responsibility for scoping out the details.”
In Smith’s view, it makes sense for the finance team to take on this task. “For small businesses especially, this money can make a big difference.”
BEING OPEN TO NEW BUSINESS MODELS
Twenty or 30 years ago, when an entrepreneur opened a company, they often just mimicked the competition, says Morrisseau. “But now, there are many different business models out there, so you need to be able to differentiate yourself.”
Restaurants offer a perfect example, he says. “Pre-pandemic, many restaurants just served food in-house. But, during the crisis, many developed other revenue streams, such as groceries for takeout. Some also innovated by developing their own products or other services.”
Morrisseau adds that for many companies, being different will mean investing money into R&D. “You also need to be able to take risks and accept that mistakes will be made—something not all accountants are used to doing. So, for some, a shift in thinking may be in order.”
MAKING THE MOVE TO DIGITAL
While digital transformation was certainly under way before COVID-19, the crisis kicked it into high gear. And, with the federal government’s current emphasis on digital adoption, that trend is set to continue, says CPA Obed Maurice, a partner at Avail CPA in Lethbridge, AB, who spoke at a session called “Career journeys from accounting and beyond” at The ONE last year. “Both the federal and provincial governments have a lot of money and grants available to support the shift to digital,” he says.
For organizations, this trend means technology is no longer simply “nice to have”; it’s a must-have, says Maurice. “In fact, if you’re not adopting any tech at all right now, I would say you’re probably going backward as a business.”
As a specialist in digital transformation, Maurice helps people adapt to this changing world—from analyzing their needs to implementing systems to advising on how to allocate money to different kinds of technology.
“Traditionally, accountants haven’t been known as leaders of change. But, now more than ever, we’re starting to play a central role in the area. And I think that is because a lot of the change we’re talking about is related to digital technology and data, and that happens to be our wheelhouse,” he says.
“As a profession, we know data governance and data management and data stewardship better than anyone, really. So, I think we’re going to be in a very good place as a profession.”
BECOMING THE GO-TO FOR ANY QUESTIONS
Given that they have (or should have) a hand in almost every area of a business, CPAs are in a prime position to act as its GPS—or even its Alexa or Siri or Google Home, says Morrisseau. “You need to play your role as second in command. You need be aware of everything that is going on. That way, whenever anyone asks a question, you can be there with the answer.”
PREPARE FOR A POST-COVID WORLD
CPA Canada has a wealth of resources, including a webinar on maximizing your business both during and after the pandemic. Plus, find out more about organizations’ return-to-work plans and how to behave in a post-pandemic workplace.
And be sure to attend The ONE Conference + Expo. This year’s theme is “Succeeding in a new reality.”