How the accountancy profession can play a role in mitigating the impact of the COVID-19 pandemic.

Michael Armstrong (FCA) ICAEW Regional Director for Middle East Africa and South Asia

The impact of the COVID-19 novel coronavirus on jobs and businesses is great and far-reaching; affecting lives and threatening the survival of various companies across the globe. Panic is spreading like wildfire over the sudden and deadly virus. The number of infections is on a high rise globally, with an average of over 3,500 new cases recorded daily making it the top most infectious disease at the moment according to the World Health Organisation (WHO). 

As a result, many activities are scaling down disrupting the normal operation of people and businesses. Countries around the world are enforcing lockdowns to varying extents with some even completely closing their borders. 

While all these necessary efforts are aimed at slowing down the spread of the disease, there have been consequences especially in the service industry. The tours, travel and hospitality industries are the hardest hit following a decision by many countries to suspend most, if not all, of its travel operations. Airports and train stations that were recently a bustle of activity are now deserted. The number of bookings in hotels and travels to tours destinations in Kenya have seen a significant drop owing to the impact of the virus on important source markets like Europe and the United States. This is already translating into huge losses for companies in the industry and might even force some that have been left fragile-especially the small fish, who cannot withstand the tide-to close shop.

It is important for professionals in the various sectors to react positively to technology if they are to keep up with the global trends and challenges in the world today. Most business activities are tied to or dependent on technological innovations to run their business or shape its future. 

One particular profession that largely employs technology in its day to day operations is that of Accounting. They have been tasked with the responsibility of reporting on how a company or, by large, a country is performing economically- internally and globally- and advise on the way forward. To do so, they rely on automated accounting software programs to track, record and prepare reports on financial transactions. 

Accounting helps to cushion against financial shocks by using economic forecasting systems to make predictions. This enables them to do thorough analysis of trends and situations as opposed to just crunching numbers. Gone are the days when accountants balanced books manually. More and more activities are being taken over by systems forcing accountants to adapt to the changing processes and models. Technology in accounting has generally made work simpler and minimized errors.

With Corona Virus restricting most physical activities and social distancing becoming a norm, individuals and companies are being forced to be creative; finding ways to keep their businesses alive and running. To ensure the continued operation of businesses, employees, who would otherwise be in the office, are being forced to work from home rendering the use of technological services inevitable. 

The accountants in particular, have a huge responsibility of reporting how the pandemic is affecting the accounts in their respective companies and industries and more-so the impact it is having on a national level and global scale. For individuals and companies in this profession to stay afloat and aware of the current issues surrounding them, embracing of technology is a wise choice.  Mobile apps can help accountants to manage their businesses remotely. They should take complete advantage of smartphones and the internet to engage and relay timely information to their customers through channels like emails, video conferencing, WebEx meetings and social media among others.  

They can also use various information systems to translate economic data resulting from the pandemic into meaningful information that can inform strategic planning and policy implementation by institutions and governments.   The use of cash as a mode of payment has drastically reduced and more and more people are opting to make payments through mobile transaction platforms. As people with an authoritative voice in the finance sector, accountants should use their expertise to create awareness and educate people on the other modes of payment available and how to go about it.

With the numbers of Corona virus infection cases likely to rise, companies especially accounting firms and finance companies must embrace and be up to date with the latest technology, now more than ever, to help fight this pandemic by providing the necessary decision-making bodies with relevant financial data and information.