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COVID-19 has caused an unprecedented health and economic crisis,and no industry is immune. While many company executives are consumed with understanding and responding to the effects of the pandemic on their global operations and business continuity plans, finance departments are exhaustively working to understand the accounting and financial reporting implications. Coupled with an already daunting task of implementing a host of new and complex accounting standards over the last few years, including standards that impact the way revenue is recognized and the way leases and credit losses are accounted for, the spotlight on finance departments has never been hotter. How corporate finance teams respond in the face of all these challenges, old and new, could have a significant impact on how a company emerges from COVID-19,and how the company performs and grows in a post-COVID-19 global business economy.

All organizations, regardless of whether they have direct exposure to or a presence in areas affected by COVID-19, will need to consider accounting and reporting implications given the pervasive impact the virus is having around the world and across industries. The current and highly fluid market environment is making it even harder for finance teams to estimate future earnings and cash flows, prompting them to take a closer look at valuations and assess their assets for potential impairments. At the same time, they are evaluating the impacts of myriad governmental and regulatory relief solutions that may be available to their companies. On top of all that, availing themselves of available relief often causes its own challenges for a finance function. For example, the SEC recently announced that it is providing conditional extensions of filing deadlines for public companies whose financial reporting may be impacted by coronavirus yet, navigating how and under what conditions a company can qualify for this option can also be a complex exercise.

Documenting complex transactions and their related accounting conclusions can be extremely challenging for finance departments even before COVID-19 given todays complex standards for internal controls over financial reporting. Adding to the challenge is an expectation of finance departments to do more specifically, to create value across the entire business. Independent external auditors can certainly provide help identifying applicable guidance and discussing the application of such guidance. External auditors, however, are limited by independence regulations. Factoring in COVID-19makes the magnitude of the challenges that much greater.

Rather than go it alone, corporate finance leaders may consider tapping into accounting advisers and other third-party professionals who can advise on the more technical accounting and financial reporting issues at play. Here are several ways an effective accounting adviser can help senior finance leaders amidst the pandemic and thereafter:

As businesses continue to manage lost revenue, disrupted supply chains and volatility in financial markets as a result of COVID-19, preparing financial statements and planning for the future may remain extremely challenging. Without the right accounting tools and knowledge, companies could miss opportunities to streamline accounting processes and get their financial houses in a stronger place to weather the storm. All of this makes it critical that accounting and financial reporting are handled in a way that sets the business up to recover and thrive.

Steve Barta is an Audit & Assurance partner at Deloitte & Touche LLP.

Read more:

The Many Benefits of Accounting Advisers to Corporate Finance: Through COVID-19 and Beyond - FEI Daily