SAMDARSHI ASSOCIATES LLP

In their own words

Accounting teams that leverage technology are better able to adapt to changes and challenges like some of the unexpected supply chain and revenue interruptions seen in 2020. So, what are the biggest challenges facing accountants today? Cash flow, hiring new talent, adapting to new tax and regulatory changes and continuing to adjust to remote work remain some of the largest hurdles for accounting teams. Cash Flow Often when there is economic hardship, or signs that it’s pending, companies move quickly to ramp up liquidity by implementing cost containment, while implementing cost containment measures and deferring planned investments. Some of that focus on improving cash flow will persist into 2021 – especially when it comes to capital expenditures. Management and consulting firm McKinsey & Company says that boardrooms have shifted their focus from earnings before interest and taxes (EBIT) to cash – and that has translated into responsibility for cash management at all levels of the business. But some of those cost-cutting measures have slowed, particularly those related to workforce and operations. Businesses are more confident in generating revenue from the changes they made in 2020 to products or services offerings and pricing strategies. Some 28% of CFOs surveyed by PricewaterhouseCoopers (PwC) in October 2020 expect an increase in revenue over the next 12 months, a marked increase from just 11% in June 2020. Improving the efficiency of accounts receivable and accounts payable processes will be vital to ensuring steady cash flow. Keep an eye on metrics like expenses, past-due invoices and operating cash flow. Generating and tracking cash reports daily can help you plan for the future because you’ll see changes or fluctuations you can use to inform other decisions.

Written by the company on its public Startup India profile. Not verified by us.