Crystian Diamond G. Singh
DEBIT CREDIT
Micro, small, and medium enterprises (MSMEs), comprising 99.52 percent of all the businesses in the Philippines and employing 63.19 percent of the work force, are greatly affected by the Covid-19 pandemic.
Among the different departments in companies, accounting plays a great role in helping these businesses navigate through these trying times. Traditionally, accountants are seen as a department responsible for computations and reports preparation. But accountants can do more than that because they are in a unique position to help, and they have access to important information that allows business owners to make informed business decisions.
So, here are my suggestions on how accountants can effectively help MSMEs thrive:
1. Initiate financial planning and analysis—Accountants can help business owners have a clear picture of the company’s financial health through financial planning and analysis. During these times, cash is critical for survival, and accountants can help in cash preservation by analyzing the incoming and outgoing cash. They can also monitor and negotiate which supplier payments can be delayed and which customer invoices can be pushed for collection to provide for the much-needed liquidity.
2. Update the business owners with government aids—The government has issued various measures to help stimulate the economy during the pandemic. Accountants can greatly help the business owners during these times by keeping them updated with government help such as the MSME Assistance from the Department of Trade and Industry.
Furthermore, House Bill 6815, otherwise known as Accelerated Recovery and Investments Stimulus for the Economy, was approved on its final reading on June 4, 2020. This P1.3 trillion economic stimulus package aims to propel the country’s growth and development and mitigate the effects of pandemic on heavily hit sectors.
3. Start digital transformation—Accountants can start digitization with their department. Several MSME friendly accounting systems enable working remotely, minimize manual work, and boost productivity. Automation is critical for the accountants to free themselves from the clerical work and focus on providing the business owners with much-needed insights and analysis.
4. Adopt an innovative mindset—Now, more than ever, accountants need to think differently. They need to see beyond the numbers because this will aid in recommending better ways of conducting the business. Accountants can start this by discussing with other departments such as marketing, sales, and operations to get a different perspective and come up with new ideas.
Accountants play a vital role in business, especially during these trying times. The information and skills they have can pave the way for business survival and growth.
Accountants must realize that they are not just a department responsible for computations and reports, but they are an important partner of business owners in helping companies achieve their goals.
Crystian Diamond G. Singh is a Certified Public Accountant who works with business leaders in solving their pressing problems. He serves as a consulting CFO of MSMEs and large companies in the Philippines.
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