Tracking and reporting on global economic trends is one service a Chartered Professional Accountant (CPA) provides. As the Canadian accounting profession’s scope continues to expand, one of the comprehensive, value-added services accountants provide is advisement on how local, regional, national and worldwide economics may impact their company. This provides additional support for clients to grow their business.
Here are Four Ways CPAs Include Economic Trends When Providing Analysis and Guidance:
1. Going Beyond the Analysis of Numbers
CPAs provide knowledge and insight into what’s happening in similar and other industries. They interpret what data and relevant economic trends are telling them to make more informed business decisions. For instance, you may want to analyze the impact on operations if interest rates move up one or two points or if supply chains become an issue. Combining business analytics with trends and what ifs allow companies to identify new opportunities, create more efficient operations generate higher profits, and navigate unforeseen circumstances like COVID-19.
2. Pointing Out Indicators
Because clients’ decision-makers need to focus on the future, CPAs must monitor leading indicators to anticipate future events. Finding economic trends and other items indicative of future events provides insight to prepare for what might take place. This is important for testing a business strategy. CPAs need to consider which things should be monitored and which questions need to be asked to remain proactive. How to optimize or increase cash flow and how to minimize taxes should be emphasized. Interest rates, tariffs, exchange rate predictability, and other aspects of the economic environment also need to be considered.
3. Checking on the Horizon
CPAs must keep current with what is on the horizon. This includes where they see their company going. If companies are performing work internationally, they’re affected by currency exchange fluctuations. Or, if they are operating on tight margins, they need strategies like hedging and buying futures. Everything needs to be explained and understood to determine whether it’s something to consider as a strategy.
4. Keeping Decision Makers Informed
CPAs need to be informed about economic and big picture trends in the market they service. For instance, if you work in the European market, be aware of issues that are affecting the European Union. CPAs serve as a resource base to stay attuned to changes in the environment and advise on what to look at so they follow the right path.
Hire a CPA Through Mercer Bradley
When you’re in the market for a CPA in Western Canada, turn to Mercer Bradley. We put the right accounting and finance professionals in place to help grow your business. Find out more today!