5 key factors that a focused entrepreneur must expect from an accountant during the lockdown.

• Does the shoe fit?
  • The accountant should be able to understand your tax compliance status currently and the possibility of being exposed to the risk and circumstances of the lock down.
  • Accountant’s ability to keep up with the latest developments in your industry in terms of opportunities, change in legislation and the required level of skill to deal with the adjustments thereof. Sometimes this could be a challenge if the accountant deals with a lot of clients from completely different industry without adequate staff complement.
    
    
• Understanding of international business operations
  • Does your accountant have the requisite knowledge of tax and trade implications of changes brought by the #LOCKDOWN on your foreign clients and/or suppliers?
  • Must have clarity on international tax codes and be able to manage the relationship between South African Revenue Services (SARS) and the foreign tax office.
    
    
• Watch and read news.
  • You are the owner of the business. This means that you understand your business more than everyone. This is a very important time to watch news and read newspapers so that you don’t feel overwhelmed when your accountant raises and issue that is related to either COVID-19 or the LOCKDOWN.
    
    
• Cash and credit control.
  • Your accountant must have already instructed you to put cash ahead of profit throughout this period of the lockdown.
  • Develop strategies on how to lower credit sales and review your cash collection policy to narrow your cash cycle.
  • Fundamentals are important, keep in mind.
    
    
• Risk management and future planning.
  • You and the accountant need to review the business and ways to bring it back on track where necessary.
  • Review forecasts.
  • Survey the likely issues that could impact the organisation in the future.
  • Technology that the company needs to embrace change.

It should be accepted that it might be difficult to address all of the abovementioned factors with your accountant in a short period of time but, the entrepreneur must satisfy him/herself that at least three out of five boxes above are ticked.

Keep in mind: The value of an accountant to any organisation is undeniable and clearly goes far beyond number crunching. Whilst they play an essential part in helping business steer through a recession, their role is just as important in the boom times. It is their balanced and pragmatic approach to business that can act as a steadying force, enabling organisations to make the most of any economic climate.