Surviving the COVID-19 pandemic is not the end game for many businesses. What next? In a dynamic world where changes are happening at a fast pace, businesses have to adapt their strategy accordingly. A key strategy that can prove worthy in business is sustainability, which is the ability to continue in existence whilst, serving society, preserving the environment and economic resources. How can Accountants help in achieving this?
What does a sustainable business culture entail?
1. Society
The focus is to contribute positively to society. Improving the lives of people through services rendered or products or facility made available to the community at large. Most primary sales targets are achieving customer satisfaction and meeting demands, which in turn brings revenue to the business. There are numerous ways in satisfying customers such as quality products, professional services, durable substances and many more; for instance, improving on the quality food products that are more beneficial to the human health or taking customer demand to the next level by having an online presence and providing alternative avenues to serve customers remotely. In this light, Accountants can assist as a catalyst in identifying ways to better serve society.
2. Environment
Global initiatives are demanding more considerations for environmental protection. Many jurisdictions have put in place various laws and regulations to protect the environment. As such, a business needs to be conscious of its impact on the environment and the type of footprint it leaves behind. However, not all measures implemented may be the best for the environment, as the cost comes into play. Certain activities can be catastrophic to the ecosystem and bring about a negative impact on nature in the long term. Due care must be taken so as to choose the best option for the business whilst also less damaging to the environment at the same time. The aim is to allow future generations to relish the environment as well. As a business, it is important to do proper research before engaging in new activities as harm to the environment can be costly to a business in terms of legal costs and business reputation risk and therefore loss of potential customers. When producing long-term analysis, Accountants can be very insightful in analyzing data.
3. Economy
Preserving economic resources are fundamental in a sustainable culture. It is no different when applying the same concept in business. How best can resources be utilized? Eliminating wastage and misuse of material through continuous monitoring can help a business cut down unnecessary costs. Automating certain processes through the use of technology such as dedicated live chat features on websites to answer customer queries can save on the cost and increase sales due to rapid responses. Another example is streamlining multiple processes so that service delivery is faster and payments are received on time.
The long term strategy is crucial for the legacy of a business. Active business planning and forecasting financial activities give a business better foresight of cashflow movement, hence, adequate measures can be taken to avoid or minimize liquidity risks. However, we cannot always foresee what is to come. Therefore, reserve management also comes into play to ensure sustainability. Maintaining a capital reserve as a buffer to absorb potential risks that the business may encounter through yearly savings rather than exhausting profits is vital to ensure sustainability. Given that financial management is a trait that the Accountant possesses, it always crucial in assisting with providing relevant and informed data for decision making.
The role of Accountant in sustainable business
In summary, Accountants are trained professionals with the necessary skill sets to have a global view of business management. Applying ethical standards as inscribed by the profession to help organisation to remain sustainable. The profession promotes accountability and responsibility which builds trust in safeguarding the assets of the organisation.
Whilst the business environment may be different for each organisation, the concept of continuity is no different for accountants. Experiences have made Accountants smarter in advising and assisting in making business decisions that help stakeholders have a better judgement of the business going forward. Accountants can be the constant driver despite the many risks and challenges ahead.
As we go forward as a society it is essential, if not vital, that we adopt a sustainable approach. The COVID-19 pandemic has taught us that we need to spend wisely and spare some coins, for tomorrow is uncertain. So, choose CRESCO Accounting Ltd, equipped with the best Accounting professionals, as your business partner that you need to navigate through the storm and become sustainable in future.
