The World Economic and Financial Crisis Caused by the COVID-19 Pandemic and the Impact on Accounting Information System

Abstract

The COVID-19 pandemic and the measures related to its suppression had serious economic consequences in the world with the onset of the global recession. Therefore, the modern market environment was characterized by significant business instability. More specifically, in N. Macedonia, most of the companies in almost all sectors have recorded declining revenues and liquidity. The turbulence is primarily reflected in the constant market changes, the increasing technological advances and the increasing demands placed on modern business entities. The mentioned market trends require fast reaction by business entities and high flexibility. The adoption of appropriate business decisions should, above all, ensure the elimination of all major market risks, as well as the appropriate adjustment to the modern market environment. Such business decisions should be based on reliable and quality accounting information arising from the accounting information system. Properly set up accounting and information system is a good starting point for providing relevant information, which is necessary for making adequate business decisions and eliminating the dangers and risks that come with intensive market changes, as well as eliminating misconceptions. These dangers are especially manifested during the crisis caused by Covid-19, which consequently led to the collapse of the financial systems of many countries, which of course left long-term negative consequences for businesses that are the main users of the products of the financial system.