Doubts emerge from firms about Government’s pandemic response

Accountants across the country have poured cold water on the Government’s economic stimulus package for businesses, with just 15% saying it is adequate.

Research from ACCA (the Association of Chartered Certified Accountants) saw the body survey close to 500 accountancy practitioners in Ireland, as well as 10,000 globally.

More than half of firms have re-forecast their anticipated financial performance since the Covid-19 outbreak, while nine out of 10 expect negative growth for the year.

Almost 60% of firms said employee productivity has been negatively affected. More than a quarter of firms said they were deferring new product launches, as well as reporting cash flow problems.

Concerns were also raised over the effectiveness of the government’s economic stimulus — 45% were unsure of its impact, and only 15% believe it has been effective, the survey said.

Head of ACCA Ireland, Caitriona Allis said the survey’s aim was to explore difficulties faced by organisations of all sizes across the country.

“This research aims to understand the business and financial blows to organisations across the country. It is seen through the lens of ACCA Ireland’s members — finance professionals supporting a wide range of businesses and organisations at this hugely difficult time.

“The findings gauge the short to medium term implications, while also looking at the measures being undertaken and considered by organisations to mitigate the damage. It also looks at what lessons we can all learn from the pandemic,” said Ms Allis.

Author of the report, Jamie Lyon, said Irish findings replicate the global picture and highlighted the importance of business continuity planning.

Some 60% of Irish firms had business continuity plans in place to help mitigate the risks of the pandemic.

Mr Lyon said: “Everyone is hurting, but particularly the smaller organisations. Financing and cash flow are concerns to everyone.”