ACCOUNTANCY PROFESSION
Compiled by Lourdes Abeyeratne
THE QUANTUM DIGITAL LEAP
Chamila Cooray discusses the role of accountants in the post-COVID era
Q: How has the role of the accountancy profession evolved in Sri Lanka?
A: The profession has evolved from one of ‘bean counters’ to business partners, shifting away from providing assurance to merely meet regulatory requirements.
Viewed as an information tool in its early stages, it earned respect as one that has added economic value since the latter part of the 20th century when accountants began addressing macroeconomic factors affecting business and the country.
The profession has shifted corporate discussions from cost sheets to contemporary strategy documents with perspectives on business insights, financial discipline, stakeholder management, enhanced governance, risk management, integrated thinking and reporting, and so on.
Embracing advanced technology has been the icing on the cake given the futuristic perspective it helps the profession bring to the table by moving away from its traditional approach.
Q: And how do you view the profession’s role in the post-COVID era?
A: The coming years will undoubtedly be among the most challenging for business and the accountancy profession. However, this is a unique opportunity to demonstrate its expertise.
There are increased expectations of those in the profession to act as trusted advisers. They will have to resolve many issues around future estimated cash flows, asset impairment, contractual modifications, implications of post balance sheet events, sustainability and the concept of going concern.
Many roundtable discussions will be held to revisit practical implications, and incorporate new business models into accounting and auditing standards globally.
Driving timely conversations with legislators and regulators, encouraging business transformations and the adoption of various business models, cloud based professional services, cyber risk assessments and assisting governments in rebuilding economies are some unique post-COVID roles the profession could play.
Q: What is your take of the profession’s progress in terms of digital transformation in the local context?
A: There has been a quantum increase in the drive and commitment towards digital transformation in the private sector in the recent past. The impact of COVID-19 has certainly been relevant in this respect. Yet, most SMEs and state organisations lag far behind.
The adoption of technologies such as robotic process automation (RPA), AI, data analytics and blockchain will help the profession focus on value adding activities by shifting attention to organisational strategy. This will introduce efficiencies and effective means to manage business as usual while providing deeper insights for strategic decision making.
Successful transformations are positively correlated to business cultures and employees’ agile mindsets. In the local context however, a lack of leadership, the absence of governance and lapses in change management pose barriers to accelerating many organisational journeys.
Q: Which leadership traits are important in the prevailing operating environment?
A: Brian Tracy says: “The true test of leadership is how well you function in a crisis.” The present is the time to test such leadership.
In my view, resilience to bounce back quickly, the tenacity to move forward despite setbacks, adaptability to overcome the temptation to avoid change, flexibility to rise to the occasion, and embedding empathy and compassion for all humans irrespective of their designations are some leadership traits that are paramount.
Q: What should business leaders prioritise to ensure continuity?
A: Most business continuity plans couldn’t face the stress test of the pandemic; yet, business must continue.
Prioritisation and how businesses respond will vary by type; but in my view, priorities centre on the three ‘Rs’ – i.e. respect, reset and reimage.
This entails respecting employees’ contributions, and investing in their safety and health, as well as physical and mental wellbeing.
Secondly, it means resetting existing relationships with all stakeholders through continuous communication, negotiations and seamless collaboration.
Key focus areas would be assessing suppliers’ reliable delivery, contract negotiations and risk acceptance. Leaders must be decisive about liquidity and the cost optimisation.
Existing business models must be reimagined to focus on online strategies, agility to adapt faster and building teams with diverse competencies.
Most importantly, leaders should ensure that all decisions and priorities tie back to the higher purpose of their organisations’ existence.
