Despite businesses across in many countries in Europe are preparing to trade again but SMEs businesses are reporting significant concern over future finances. More than two thirds of businesses report that they will be unable to meet deferred tax liabilities within the next six months. Recent survey report suggest that around 5% of SME have decided to liquidate their business, around 19% of SME report that social distancing requirements make it near to impossible to function their business operations making the business financially unviable in given circumstances and around 31% have changed their credit policies for customers due to cash flow constraints. The business owners are witnessing loss-making periods despite putting their effort in growth of their businesses.
In the given circumstances, the role and importance of accountants have significantly increased for their SME clients. It is critically important to assess the business entity short-term and long-term cash flow projections. A written plan and clear strategies will allow the SME owners for a calmer mindset during this period. Moreover, there are a number of incentives being offered by governments of most of the companies in attempt to carry their businesses and reduce unemployment levels. Most of the SMEs are not fully aware of the government incentives and their eligibilities to apply. The SMEs who have taken the services of qualified accountants in this regard found themselves in a much better and less stressful position. The qualified members of European Institute of Chartered Accountants in European Countries have been able to contribute significantly. A recent survey conducted in July 2020 showed that the number of clients taking services from qualified accountants has almost doubled in the Q2 of 2020. Therefore, where many skilled professionals struggled to survive their career in previous 6 months, the qualified members of European Institute of Chartered Accountants witnessed increase in their clientage over this period.
The governments of EU countries are towards economic recovery but the concerns are over supply chains, tax liabilities and wellbeing in general. Navigating these obstacles requires resilience and proper planning on part of SMEs. It is high time for qualified members of European Institute of Chartered Accountants to play their part in economic recovery by offering their valuable services to business entities, especially SMEs, across countries.