By Jessica Salerno-Shumaker, OSCPA senior content manager
One CPA says that instead of focusing on the problems of the past two years, look to the future to better plan for business risks.
“There were a lot of changes that occurred because of the pandemic along with a rushed adoption of technology,” said Donny Shimamoto, CPA, founder and managing director of IntrapriseTechKnowlogies LLC.
He will present “How Accountants Build Business Resilience” at the fall Accounting Shows that will cover areas of risk and how to prepare for the evolution of accounting.
Shimamoto said many businesses are still hurting from the pandemic and using that experience to prepare for the future. Rather than look to the pandemic for planning, he said they need to take a more holistic approach to risk management to be ready for any scenario.
This proactive approach to budgeting and forecasting is essential in determining realistic business scenarios, Shimamoto said. As accountants are now playing a key role in the digital transformation that entails mitigating and interpreting new risks.
The biggest issue he says he hears from employers now is dealing with the Great Resignation. Shimamoto said more businesses need to consider employee engagement risks because when so much effort is put into keeping clients happy, it can come at the cost of keeping employees.
“Part of what's causing the Great Resignation is a lack of proper consideration of employee needs and well-being,” Shimamoto said. “There are different business practices that you can use, like one-on-ones, using technology to create engagement and showing appreciation.”
Part of preparing for these risks will require scenario planning, financial planning and analysis skills, Shimamoto said. Taking these extra steps will help a business become resilient to whatever the future might hold.
“Part of this change that we need to do as accountants is deal with a higher volume of complexity and risks,” Shimamoto said. “And that's why we need to go beyond finance and look at people and operations and bring this holistic view to whatever or whoever we're working with.”