Accounting & Finance

Survey Shows CFO Fears Skyrocket as Coronavirus Endures

  • 3 min Read
  • April 1, 2020

Author

Escalon

Table of Contents

Every business across the world has been touched in some way by the coronavirus emergency, and chief financial officers are certainly feeling the heat that’s come from this uncertain period. Nowhere is that more obvious than in PwC’s most recent survey of CFOs.

Although these professionals expressed cautious optimism just a few weeks ago, that has changed quite a bit in recent weeks. During the week of March 23, PwC polled 55 finance leaders across the US and Mexico to get a feel for their sentiments regarding the current and future business landscape through the lens of COVID-19.

Worries and Fears Grow



Because PwC asked the same questions during the week of March 11 as they did last week, the firm was able to see the differences between how CFOs felt then and now — and the findings show great concern.

Whereas 54 percent of CFOs said they believed coronavirus would have the “potential for significant impact to our business operations, and it is causing us great concern” in early March, that number rose to 87 percent this week.

And while about 34 percent of the finance leaders who expected the COVID-19 impact to be “limited to specific regions in our business” back in early March, that number fell to just nine percent last week.

As for how the coronavirus will affect profits, those concerns have worsened as well, the report shows. “Eighty percent of finance leaders now say they expect a decrease in revenue or profit for the full year,” PwC notes. “Two weeks ago, only 58 percent anticipated decreased revenue and/or profits in 2020, and 40 percent said it was difficult to assess.”

Recession Remains Biggest Concern



As was the case earlier this month, the biggest concern among CFOs is a possible recession. Following are the strongest concerns cited by finance leaders in last week’s survey:

  • Potential global recession: 84 percent
  • Financial impact, including effects on results of operations, future periods, and liquidity/capital resources: 64 percent
  • Decrease in consumer confidence, reducing consumption: 45 percent
  • Supply chain issues: 31 percent
  • Effects on workforce/reduction in productivity: 29 percent
  • Difficulties with funding: 15 percent
  • Not having enough information to make good decisions: 9 percent
  • Impacts on tax, trade or immigration: 4 percent
  • Lack of a comprehensive/tested company emergency preparedness plan: 4 percent

About 60 percent of finance leaders surveyed said that productivity was low “due to a lack of remote work capabilities.” This makes it imperative that businesses have a way to ensure all staff members are able to work remotely. Check out our Remote Work Engagement Checklist for tips on how to best prepare your team for remote work.

 

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Accounting & Finance

The Importance of Financial Literacy for Business Owners 

Running a business isn’t just about having a great product or service – it also requires a firm grasp of...

Accounting & Finance

Tax Implications of Remote Work: What SMBs Need to Know 

The rise of remote work has opened exciting possibilities for small and medium businesses – access to a wider talent...

Leadership & Growth

Succession Planning: Preparing for Leadership Transitions 

Change is inevitable in business, and one of the most significant changes a company can face is a leadership transition....

Accounting & Finance

Sales Tax Compliance in the Digital Age: Challenges and Solutions 

The rise of e-commerce and digital business models has revolutionized how companies reach customers, but it has also added new...

Leadership & Growth

Implementing Lean Management Principles in SMBs

“Lean management” might conjure images of big manufacturing plants fine-tuning assembly lines, but the principles of lean are highly relevant...

People Management & HR

Developing a Competitive Compensation Strategy for SMBs

For small and medium-sized businesses, a competitive compensation strategy is key to attracting and retaining the talent needed to grow...

Accounting & Finance

The Role of Financial Reporting in Small Business Growth

Financial reporting often appears to be a routine exercise, but for small businesses, it can be the difference between reactive...

Accounting & Finance

The Impact of Accurate Financial Operations on Business Success

Financial operations encompass the systems and processes that govern every monetary aspect of a business—from managing payables and receivables to...

People Management & HR

The Benefits of Outsourcing Payroll for Small Businesses 

For many small business owners, running payroll is a time-intensive chore that requires meticulous calculation, familiarity with tax codes, and...