PricewaterhouseCoopers (PwC), has said, as companies react to the impact of the coronavirus outbreak, identifying strategies to emerge stronger may become the focus for these companies.
To that end, PwC, in suggesting steps that companies can take to protect their growth in the wake of the COVID-19, said in a report that firms should, among other things, consider accelerating digital transformations as the shift to remote working reveals gaps in IT infrastructure, workforce planning and digital upskilling.
It also suggested the protection of growth and profitability through actions such as scenario planning, more frequent financial modeling exercises to improve resiliency, and new models that incorporate economic impacts of past pandemics.
Scenario planning is making assumptions on what the future is going to be and how the business environment will change overtime in light of that future. More precisely, Scenario planning is identifying a specific set of uncertainties, different “realities” of what might happen in the future of your business.
“Take the pulse of your customers, thinking through longer-term considerations around shifts in core markets or business models as a result of the pandemic,” added.
Regarding Finance and liquidity, PwC explained that financial markets often watch how companies plan for and respond to events like the COVID-19 pandemic.
“What you can do now: Consider disclosures related to direct effects on the results of operations, as well as second- and third-order effects
“Think about disclosures related to risks and uncertainties about the impact of COVID-19 on future periods
“Assess disclosures on the current and future impact on liquidity and capital resources.”
In the area of tax, trade and regulatory, the accounting firm explained that navigating complexity and risk in today’s global uncertainty takes more than an understanding of tax and regulatory systems.
It is critical that tax functions consider the broader economic, political and societal context you operate in, in order to make informed and compliant decisions that drive your operations forward.
“What you can do now: Effectively manage cash taxes, obtain available refunds and consider local government and tax authority measures in response to COVID-19
“Consider actions to stabilise supply chains while bracing for an unpredictable revenue and profitability mix in key markets
“Assess the resources your company needs to meet your ongoing indirect and direct tax compliance requirements
“Explore opportunities focused on becoming more flexible in responding to arising uncertainties.”