Adapting to the New Normal: Accounting and Advisory Services Post-Pandemic

The COVID-19 pandemic transformed the Australian business landscape, speeding up changes in accounting and corporate advisory services.

The COVID-19 pandemic reshaped the Australian business landscape, triggering a rapid evolution in accounting and corporate advisory services. In 2022 and beyond, businesses are navigating a new environment that emphasizes digital transformation, remote work, and financial resilience. Accounting and advisory firms must adapt to meet these shifting demands and ensure that they remain competitive in a fast-changing market.

Digital Transformation in Accounting

The pandemic accelerated the shift towards cloud-based solutions and digital tools in accounting and advisory services. With remote work becoming the norm, businesses are increasingly relying on technology to manage financial data, track performance, and streamline workflows. Cloud accounting software, artificial intelligence (AI), and automation tools are now essential for improving efficiency, accuracy, and real-time decision-making.

For accountants, embracing digital transformation means investing in new technologies that reduce manual processes and allow for better collaboration with clients. This shift is particularly important for small and medium-sized businesses (SMBs) that are seeking ways to reduce costs and improve operational efficiency.

Remote Work and Client Engagement

Remote work has become a permanent feature for many firms, and accounting and advisory services are no exception. Client engagement has moved to virtual platforms, and businesses are using video conferencing, online collaboration tools, and secure digital communication channels to stay connected. These platforms allow firms to maintain close relationships with clients while ensuring safety and flexibility in the workplace.

The shift to remote work has also increased the demand for financial resilience strategies. Businesses are seeking advice on how to weather future economic disruptions, maintain cash flow, and ensure operational continuity. For CFOs and corporate advisors, providing support in these areas has become a top priority.

Focus on Financial Resilience and Risk Management

Post-pandemic, businesses are more focused than ever on strengthening their financial resilience. For accounting professionals and corporate advisors, this means helping clients develop more robust financial strategies that can withstand future disruptions. Businesses are keen on risk management strategies that minimize exposure to unforeseen events such as supply chain disruptions, inflation, and potential future health crises.

CFOs are increasingly involved in long-term strategic planning and forecasting, utilizing data analytics and financial modeling to anticipate risks and opportunities. This shift towards more proactive financial management is reshaping the role of CFOs, who are now seen as key players in driving business sustainability.

The Rise of ESG (Environmental, Social, and Governance) Reporting

Another significant trend accelerated by the pandemic is the growing importance of ESG (Environmental, Social, and Governance) reporting. In 2022, businesses are under increasing pressure to adopt sustainable practices and disclose their ESG performance. Investors, consumers, and regulators are demanding more transparency around how companies are addressing social and environmental issues.

Accounting and advisory firms are stepping up to help businesses comply with evolving ESG reporting standards. As companies face increasing pressure from stakeholders to demonstrate their commitment to sustainability, accountants must provide guidance on how to integrate ESG considerations into financial reporting and corporate strategy.

Opportunities for Accounting Firms

The pandemic has presented significant opportunities for accounting firms that can adapt to the new normal. By embracing technology, focusing on client engagement, and providing strategic financial advice, firms can position themselves as trusted partners for businesses navigating the post-pandemic world. Accounting firms that offer a full suite of advisory services, including risk management, financial resilience, and ESG compliance, will be better equipped to meet the changing needs of their clients.

The new normal has also driven a shift towards more flexible service models. For example, firms are offering subscription-based services or on-demand advisory, allowing businesses to access expert advice without committing to long-term contracts. This flexibility is attractive to businesses, particularly smaller firms that may not have the resources to engage in traditional, full-service advisory relationships.

As Australian businesses continue to adapt to the post-pandemic world, accounting and corporate advisory services must also evolve. By embracing digital transformation, focusing on financial resilience, and meeting the growing demand for ESG reporting, firms can position themselves for success in the new normal. For businesses, working with a forward-thinking advisory firm that understands these trends will be crucial for navigating the challenges and opportunities of the coming years.

If you would like to review your strategies for 2022, book a complimentary consultation with DGMS Group.

1. Australian Taxation Office. (2022). Adapting to the new normal: Digital transformation in accounting. www.ato.gov.au

2. CPA Australia. (2022). The future of accounting and advisory in a post-pandemic world. www.cpaaustralia.com.au

3. PwC Australia. (2022). Financial resilience in the post-pandemic world: A guide for CFOs. www.pwc.com.au

4. KPMG Australia. (2022). Navigating ESG reporting and sustainability: Trends in corporate advisory. www.kpmg.com.au