COVID-19 Crisis Response: Accountants Must Combine Compassion and Logic to Provide Hope.

From Tom Hood, CPA, CITP, CGMA, and CEO of the Maryland Association of CPAs, as told to Donny Shimamoto for https://cpatrendlines.com

This is a very scary time AND a time for courageous leadership. We are fighting two viruses – COVID-19 and the “fear virus” both spreading equally fast, exponentially in fact. I think you are wise to make “compassionate” business decisions and to creatively think about your business and your client's businesses in new ways.

Remember that people are Velcro for negativity and Teflon for positivity? Multiply that times ten (10x) and you get the “fear virus.” 24-hour news cycles, a divided nation, wild swings in the market, it is no wonder we are in a state of fear! And remember what fear does to our brains and bodies? We go into fight or flight mode (thus the anger feelings), which means we literally and physically cannot think creatively, proactively, and be the best version of ourselves.

Put your oxygen mask on first, so that you can help others – family, friends, clients, colleagues.

I remember office hours with bestselling author, Jim Collins (“Built to Last,” “Good to Great”) and he talked about the importance of core values and purpose and how great companies double down on those in crisis. In other words, when everything in the world is changing and uncertain, what can you reassure your people and clients that will not change? That should be core values and in your case COMPASSION seems to be one of those. Use those as a base for your communications. I just saw a communication from Marriott that did that very thing.

My second thought, which I have now used through several major “black swan” events, also comes from Jim Collins. He calls it the Stockdale Paradox and it comes from Col. James Stockdale, who survived a horrific POW camp during the Vietnam War. Collins interviewed him in the book “Good to Great” and the concept is: “You must never confuse faith that you will prevail in the end – which you can never afford to lose – with the discipline to confront the most brutal facts of your current reality, whatever they might be.”

See the paradox?

Confront the brutal facts AND visualize and plan for the best.

Use your strengths, your positivity resources. Do the same thing for your clients – help them plan for the worst, then flip those challenges into opportunities. What might that look like? How would we structure our business at 50 percent of revenue? What creative pathways can we imagine?

Right now, every business is facing the same market dynamics and situations in their competitive arenas, which means that those who can plan for the worst and seek new opportunities will be winners coming through the other side (which we all hope is sooner rather than later). We truly are all in the same boat.

Now here is the key for all us CPAs. It is a “hard trend” certainty that all of the mechanisms being suggested to get through this (other than medical) will involve accounting and taxes – the language of business that accountants are experts in.

Whether it is...

• forecasting revenue and cash flow (worst case AND best case),
• applying for loans or assistance from the SBA, or
• reductions in payroll taxes to help people or
• the just-passed Family Leave Act that mandates leave and sick pay AND offers exemptions and refundable tax credits,

...these are all opportunities for CPAs to shine and truly add value during this crisis.

Finally, be the LIGHTHOUSE. Your expertise will be needed more than ever in this crisis.

Much of the fear and emotions, beyond the real virus, are grounded in financial uncertainties. You and our fellow CPAs have the keys to help navigate these turbulent times and beat the FEAR VIRUS! CPAs are truly needed to help us come through this even stronger.

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