The health-triggered economic crisis we continue to experience this year is phenomenal. But due to news of an emerging COVID-19 vaccine, business leaders are jolting with excitement over the possibility of resuming to normality.
Despite being highly positive news, audit firms in Singapore concur with other global management consultants such as McKinsey & Company, who warned people about the potential struggles that may arise. The new vaccine might improve the current pandemic situation, but there is still a high possibility that businesses will continue to experience challenges.
Let’s take a look at a few implications companies in Singapore might face when a viable COVID-19 vaccine comes into the picture.
1. Going back to a large extent of pre-Covid
Just as the pandemic brought about an unexpected wave of investor fortune to some tech companies, news of a Covid-19 vaccine has changed the fate of other companies. The announcement of a viable vaccine triggered significant gains and interest in stocks of companies in the travel and tourism industries. On the other hand, formerly favoured stocks, such as tech companies like Zoom, may have waned or stagnated.
Anything that could directly impact the pandemic situation is going to cause a change in behaviour. Having the vaccine also means that people will feel more comfortable and productive working back in the office, have more cash to spend and contribute to sales. We might go back to looking at markets as before in a slow, gradual growth around the globe.
2. Cash flow challenges will persist
With that said, it is still expected that, normalcy will not resume immediately. While the news of a Covid-19 vaccine is hopeful and growth is imminent, business activities will not resume as fast as entrepreneurs would like, and due to weaker consumer sentiment and a dip in spending, many enterprises will remain in uncertainty for a while.
Since most SMEs tend to operate on tight cash flows, these enterprises will continue to face challenges in staying afloat. Rather than running the finance and accounting function in-house, consider outsourcing and save more on expenses by reaching out to an accounting bookkeeping service provider.
At Ackenting Group, our professional accountants have more than 10 years of experience in accounting and audit expertise across various industries. We aim to go beyond and integrate more value-added services like financing solutions, company incorporation services and more to help your business grow. With our personalised audit services, we aim to be the best audit firm for your company to improve business performance and strategise a solution that is tailored to your requirements.
3. Bold entrepreneurs will venture to new technologies
In the early days of the pandemic, SMEs were strained with cash resources. Less than two in three could continue to sustain operations in the existing conditions. However, many entrepreneurs were bold and willing to explore new technologies as a way to survive and thrive. Many were already making investments in tech solutions despite the cash flow concerns. News of a potential Covid-19 vaccine will cause a shift in these plans where daring entrepreneurs will surge ahead, which could lead to successful investments or failures.
The willingness to invest in the face of a downturn is commendable. However, unadvised brashness could prove fatal for a business. Advice from an audit firm can help you make smart investment decisions. On top of that, corporate accounting services will help to maintain your books and keep your cash flow healthy so your business can stay afloat.
News of a possible Covid-19 vaccine has already stirred the market, and the effects from the economic recession may still persist. At Ackenting Group, we will help sustain your vitals like cash flow, and provide you with a thorough evaluation of the pros and cons of investing in new technologies.
If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.
