Chartered Accountants in practice have had a lot to contend with over the last six months. Here, they share the lessons learned from the challenges faced during the COVID-19 pandemic.
Chartered Accountants and their skills have been at the forefront of business during this pandemic, ensuring that businesses across the island of Ireland – including their own – continue to stay afloat. In this feature, three Chartered Accountants describe what challenges they and their clients have faced during the COVID-19 crisis.
Members in practice, Conor Woods from Woods & Partners, James Kelliher from Kelliher O’Shea and Wendy Merrigan from Williams Merrigan share their insights on current business challenges, the lessons they have learned during the pandemic and what the future holds for SMEs.
Meeting adversity with growth
Conor Woods FCA, Managing Partner at Woods & Partners, outlines how technology and innovation have enabled him and his staff to keep the business running through the COVID-19 crisis.
QHow has your business been impacted by the COVID-19 crisis?
Initially, it was a shock to the system for everyone. However, we have invested heavily in our cloud platform over the last five years, so we were able to adapt to remote working relatively seamlessly. The greatest initial challenge was not having a ‘physical' closing meeting with our clients nor being able to have team meetings in the same format we were once familiar with.
What is the most challenging aspect of leading a practice in this environment?
On-boarding new staff is the most challenging aspect of growing a firm in the present environment. We have hired 12 staff in the last three months and it's challenging to integrate, train and induct them into an organisation where ‘normal office conditions’ do not prevail.
The strength of our profession is in the quality of the training that our articled clerks receive in practice, so we must ensure that this training continues to the highest of standards in the current social distancing climate. We have been lucky our size enables us to continue this training which has proven to be a key attraction for high calibre graduates to come to our firm.
What business changes have you made to ensure that you continue to deliver for your clients?
Due to growth across our practice, we have recently opened new offices in Laois and Cavan to meet client and market needs in these locations. Clients want premium advisory, audit and taxation services close to their businesses without having to travel to Dublin and so we see this as a key opportunity. Additionally, more and more of our staff do not want to commute, so having regional locations helps us with staff retention and attracts a high calibre of staff from the city and larger firms.
If you could make one change to the supports available for your clients, what would it be?
We would like to see an expansion to the Local Enterprise Office Business Continuity Voucher scheme for another six months for SMEs. This proved to be a hugely supportive and popular scheme for them.
What does the future hold for small- and medium-sized accountancy practices, in your opinion?
The future is bright and exciting for firms who innovate and continue to re-invest in people and technology. It’s critical that firms maintain financial liquidity and strength to enable them to hire the best and invest in technology within their practices. The firms that have strong technology platforms have found it easier to adjust to the enforced changes in work patterns. I see smaller firms engaging in more collaboration with each other due to increased regulation and, perhaps, more consolidation in this space.
As a practice leader, what has been your most important lesson to date?
It’s just as important to work on the business as it is to work ‘in the business’. Practices must manage working capital, lock up, and liquidity relentlessly. This is now more important than ever before. This can be difficult as our clients, may want more leniency in terms of credit, support, and time in the present environment, so there is a fine balance to be achieved. Managing client expectations and our own business performance is a pivotal aspect of our own practice strategy.
Adapt and be flexible
James Kelliher FCA, Partner in Kelliher O’Shea, Chartered Accountants, has found that flexibility with staff and clients has been key to navigating business changes that have cropped up because of the pandemic.
How has your business been impacted by the COVID-19 crisis?
As a small accountancy practice, we offer a wide range of services. We provide bookkeeping services to a number of businesses in the hospitality sector which was impacted severely. We have a diverse client range across many sectors from hospitality, media, motor trade, retail, nursing homes and agriculture who all had various challenges and continue to do so as we work through the crisis. Our workload, in terms of dealing with client queries, increased dramatically, especially around the introduction of the Temporary Wage Subsidy Scheme (TWSS) and other government supports.
What is the most challenging aspect of leading a practice in this environment?
There has been a level of disruption to both the practice and client business which has had a knock-on effect on the timing and delivery of work. The business disruption will have an impact on filing deadlines being met later in 2020 and this will be an issue for our staff and clients in an already demanding year.
What business changes have you made to ensure that you continue to deliver for your clients?
Although our office was closed for a period, we were still very much accessible throughout for our clients by phone, email and Zoom/Microsoft Teams. We also facilitated some of our staff with young children to work shorter hours. Our audits have been conducted remotely this year; previously, we would have carried out the fieldwork for our larger clients on-site. We have had to be flexible with our clients and cognisant of the fact that some of their finance personnel were also working shorter hours with an enhanced focus on their short-term cashflow management.
If you could make one change to the supports available for your clients, what would it be?
For many small businesses, funding during the current crisis has not been easily accessible. While the TWSS and Restart Grant were successful, many small businesses failed to secure additional short- or medium-term facilities from their lending institutions as a result of the uncertainty surrounding the crisis and the impact it was having on current trading levels. We would have liked to have seen a simplified, low-interest government loan or capital grant made available for PPE expenditure, which was significant for many SMEs in reopening.
What does the future hold for small- and medium-sized accountancy practices, in your opinion?
We believe there will be further consolidation within the industry among small- and medium-sized practices. This trend had started pre-COVID-19. The talent pool for small practices was at an all-time low because of the larger firms attracting the majority of graduates to the cities. Consolidation should enable practices to attract better people and possibly offer a more attractive work-life balance that people crave.
Smaller practices need to continue to invest in technology and their people, and use technology to move towards a paperless environment. The current crisis has highlighted how reliant we are on technology.
As a practice leader, what has been your most important lesson to date?
The ability to adapt and be flexible is key to leading our practice and being able to advise our clients. This has never been more prevalent than in the current COVID-19 climate where guidelines that impacted on both decisions that needed to be made for the practice, as well as advice given to our clients, were evolving on a weekly and sometimes daily basis.
Focus on positive action
Wendy Merrigan FCA, Co-Founder and Director at Williams Merrigan, has seen the workload in her practice increase in the last six months, but believes opportunities are there for accountants who concentrate on serving clients’ needs.
How has your business been impacted by the COVID-19 crisis?
We have a small team and the level of queries regarding COVID-19 issues has been overwhelming. This has led to a slower turnaround time for some work which has its own impact as we approach large filing deadlines later this year. While working remotely was used by our practice for several years, COVID-19 meant some staff no longer had childcare facilities and had to home-school children for a period. Ensuring staff did not take on too much work and balanced their homelife with their need to provide ongoing quality, timely service to clients, specifically regarding tax filing return deadlines, was a specific challenge. Right now, it is unknown what will occur during winter months regarding schools and this is stressful for staff.
What is the most challenging aspect of leading a practice in this environment?
Staying on top of the ‘normal’ workload as well as managing client queries. A serious challenge has been planning and scheduling work while also finding time to keep up-to-date with Government and legislative changes as they arise to ensure clients are kept informed. This increased workload has meant I have had less time as I would like with staff members.
What business changes have you made to ensure that you continue to deliver for your clients?
Responding to email and telephone queries proved highly challenging. For some queries that arose, it became more practical to share information generally by way of email or, in certain circumstances, on social platforms. This has meant less time repeating answers to queries that many clients have. Sharing knowledge with other accountants and making new connections to discuss the impact of COVID-19 on our profession has been beneficial also.
If you could make one change to the supports available for your clients, what would it be?
Grants have been made available to review cashflows and financing, yet necessary ongoing compliance costs for accountancy services were not included. I would have granted subsidies to businesses to allow their usual monthly or yearly fee to be included in the grants awarded. Ensuring clients have tax clearance for subsidies and grants mean accountancy services were vital for all businesses yet not provided for.
What does the future hold for small- and medium-sized accountancy practices, in your opinion?
Regardless of size, I believe we are fortunate to have a qualification whereby our services, expertise and advice are continuously sought and needed. Our practice is small yet, as I mentioned, there are always opportunities to be found when you are laser-focused on serving client’s needs. I believe services will always be sought from proactive accountants with good communication skills.
As a practice leader, what has been your most important lesson to date?
I've realised uncertainty can be positive and have learned to let go of the need for control. Inspiration and creativity come from not being rigid in views or practices. It's important to move with the times and learn to embrace new working environments and social networking platforms to serve client needs efficiently. Above all, the most important lesson has been the realisation that uncertainty is neutral; we can continue to focus on positive action.
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