Irrespective of size, sector or country, the economic and social impact of the pandemic has expanded, with growing challenges for business and accountancy profession
ACCA’s Covid-19 global survey The Road to Recovery, published on 23 June, crystalises many key issues that need to be addressed by policymakers and governments. ACCA is calling on governments worldwide to review economic rescue packages and enable a return to sustainable growth.
Jamie Lyon, the report author and head of business management at ACCA explains the unavoidable challenges many are experiencing: ‘The problem at the centre of these issues is a collapse in customer demand for many organisations, with 53% of respondents citing purchases as completely stopped or reduced. It’s a domino effect, with both product launches and investment plans being deferred, further compounded by supply chain challenges and issues with customer order fulfilment.’
The data for June reveals continued cash flow challenges, with almost half of respondents saying this is a problem. Since March 2020’s original report, three months on new data reveals greater concerns over financing and debt issues, and given the global economic climate, it means these will be difficult matters to resolve.
However, amidst the headline findings there are glimmers of good news: 82% of business leaders have now performed a financial reforecast since the outbreak. In March, this raised red flags with only 53% having done so. Other global findings reveal:
- 83% expect revenue to be down compared with the previous financial year
- 81% have now adopted flexible working from home strategies, with 50% adopting staff rotas to accommodate social distancing requirements
- 71% identify workplace transformation as the longest term Covid-19 impact
- 32% now see government interventions as effective, compared to 17% in March 2020
ACCA’s roadmap to recovery is available here. This June survey of over 4,500 ACCA members follows the publications of ACCA’s report COVID-19 Global Survey: Inside Business Impacts and Responses in April 2020, and continues to track ACCA sentiment around the world on the impact of COVID-19 and examines how organisations are responding.