If there was ever a time when accountants needed to step up to the demands of the moment, this is it.
In May 2020, UK’s output fell by over 20%. We can expect further downside falls. This is staggering. It will even dwarf the economic rift caused by the Great Depression of the 1930’s. What will we call this? The Even Greater Depression?
Restaurants, hotels and much of the hospitality, aviation and other service sectors are either bumbling along at much reduced activity levels or closed.
The end of the furlough process is announced, 31 October 2020. There is no new planned support for the self-employed beyond the six-month period already promised.
All of your business clients will need your help. What are their choices? Steady as you go, reduced activity or close down?
Accessing, and forecasting data has to be at the top of every businesses’ to-do list.
In the coming weeks dynamic forecasts will be the order of the day. We will all need to dust-off our “what-if” skills and be prepared to adapt to changing economic circumstances as they occur. The phrase “real-time” is going to achieve elevated status as whatever plans we produce we will need to update as the variables change.
Accountants will surely need to rise to these challenges.
It may be some time before we can re-establish activity levels to pre-COVID periods. Planning and forecasting are old friends, and as the title of this post asserts, their application may be our only salvation.