Navigating the Complex Issues of Accounting in Thailand

BANGKOK - March 22, 2022 - PRLog -- Reliance Consulting, an accounting firm in Thailand, shares the issues impacting accounting today and some of how the industry can navigate around them.

Since March 2020, companies have had to undergo significant changes to overcome unprecedented financial and operational challenges. This 2022, supply chain disruptions and changes in the labour market arise. It can change the overall economic outlook and future of operations and financial reporting of individual businesses.

Inflation impacts companies.  "Inflation has increased the total cost of goods and services, and employee's salary. The selling retail price of every product and service has also increased to accommodate the additional expenses and meet the company's estimated revenue," said Mr. Hans Teo Han Siang, Director at Reliance Consulting.

In addition, he said, "When consumers come face to face with increased prices, they will either find cheaper alternatives, accept the change, or forgo purchasing altogether. That said, companies need to re-evaluate their profitability, while taking inflation into account as this may have potential accounting implications on their end, whether it be reduced profitability or loss of revenue."

Concerning inflation, it has resulted in supply chain disruptions.. Since there's an increase in purchasing materials and producing goods, there will undoubtedly be an increase in the price of delivering goods to suppliers and distributing them to clients. Because of this, companies need to modify their balance sheet to account for these appropriate changes.

"As part of the supply chain disruptions, companies must also expect that their inventory will be affected as some products may no longer be available from their suppliers. In such cases, conceptualising new ways to add more readily available products and services is imperative to keep the business running," stated Mr. Hans.

While Thailand is a country with a diverse talent pool, labour shortages are still apparent as employee departures and turnovers are at an all-time high.

According to the National Economic and Social Development Council, the Thai workforce will decrease from 43.2 million to 36.5 million by 2040. The reason is that Thai professionals are more particular about the job that they want to enter into. Some of them no longer wish to work in an uncertain industry. Others are demanding higher pay.

Accounting firms and corporate establishments need to promote communication, adaptability, and resilience to navigate these issues and find the proper solution.

Reliance Consulting is one of the leading accounting firms in Bangkok (http://www.relianceconsulting.co.th/outsourced-accounting...), offering comprehensive solutions to every business' accounting needs.