In House Accounting Vs Outsourcing

In House Accounting Vs Outsourcing

In their earliest days, many small business owners will choose to take care of their accounts themselves. For some, this can be a helpful way to familiarise themselves with the inner workings of their business and its financial process. For many, it is simply a way to keep costs down until they find firm footing. But as the business grows, almost all will choose to hand over this task to someone else. At this point, a decision must be made as to who will be responsible for one of the most complex, but important, aspects of the business moving forward.

Assuming you are not one of the (very) few people who decide to keep taking care of the accounts, there is one main decision you need to make: whether to have someone do this work in-house, or to outsource it. Each option has its own specific advantages, and determining which is best for you will depend on your own needs and, to some extent, the resources you have available.


Weighing Up The Cost

Cost is obviously one of the biggest factors behind any business decision, but particularly one that involves a potentially major expense such as hiring a new employee. If you’re going to take on such an expense, you need to know that you are getting enough in return to justify it. For the majority of small or medium sized businesses, there simply is not the volume of work to warrant a full-time financial role.

The average bookkeeper’s salary in Ireland is around €33,000 a year, while the average accountant’s salary comes in at roughly €50,000. This is almost enough to hire 2-3 full-time employees on minimum wage. Then there are employee overhead costs, such as insurance, benefits, taxes, and space/equipment, which increase the cost of hiring an employee by about 20%.

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“Unless you have an incredibly high-volume of financial work that needs to be done on a continuous basis, bringing someone in to look after your finances is an extremely costly and inefficient way to handle this side of the business.”

Weighing up the potential Quality

As you likely already know, bookkeeping and accounting are not particularly easy tasks. They are complex processes that require various mathematical skills, an incredible eye for detail, and years of training to master.

One of the biggest advantages to building your own in-house team is that you can fill it with people who have experience in your specific field. This kind of approach results in a situation where you have a team of people who are not only good at their job, but passionate too. But unless you have the resources to assemble a full team, you probably won’t reap these rewards with just one person.

Unless you’re willing to shell out top dollar for the best in the business, hiring one person will never get you the same level of skills that you will receive from a whole team of experts. Furthermore, when there is one person who is very clearly designated as being responsible for the finances, they tend to have very little in-depth oversight, and it is very easy for mistakes to go unnoticed.

When the work is outsourced, however, you get access to a whole team of experts who not only have a great level of combined skill, but have much more oversight as well, with the end result being that the work carried out is of much higher quality.

Factoring Efficiency In To The Equation

Bringing someone in to manage your books can be appealing for many reasons, not least of which is the ability to see that they are working, and working solely for you. Many employers simply feel more comfortable with having someone on-site at all times, with a vested interest in the success of that business. But apart from the costs associated with this, and the increased risk of mistakes, the argument can easily be made that this is a counterintuitive approach.

Firstly, if the workload simply isn’t there, then outsourcing will clearly be a more efficient and cost-effective way to get the work done. But regardless of the amount of work, assigning it all to one person leaves you in a vulnerable position.

If that employee takes annual leave or sick days, somebody else will have to take on the task of handling the accounts while they are away, which is easier said than done.

If that employee takes annual leave or sick days, somebody else will have to take on the task of handling the accounts while they are away, which is easier said than done.

Should they suddenly leave the role, you will be left scrambling to find someone with the right skills to come in and familiarise themselves with your accounts as quickly as possible.

When outsourcing, you won’t have to worry about any of these issues. If one of the employees at the accounting firm is out or leaves suddenly, the work is simply handed off to the next equally qualified expert.

It is understandable why people would feel more comfortable around someone with whom they have a more personal relationship, but ultimately accounting firms need to strike the balance between quantity and quality of service, just like any other business, which means consistently providing the correct numbers on time, every time.

The Risk Of Employee Fraud

The final point is one that not usually a major consideration for most people, even though it unfortunately should be. Unfortunately, research how shown that between 22 & 28% of businesses are victims of employee fraud, with small businesses being the most likely to be affected. And the longer an employee has been with a company, the more likely they are to commit fraud, and the greater the size of the fraud will be.

The complexity of the process can make it easy for someone who knows what they’re doing to hide fraud from someone who doesn’t, which is why such fraud generally goes undetected for an average of 16 months. Such instances of fraud are far less common when the work is outsourced, not only because there is increased expert oversight, but also because their entire business would fall should they be shown to be inherently untrustworthy at executing their job.


As with most choices in business, there are pros and cons to both in-house accounting, and outsourcing. You will have to assess your own needs to decide which option is best for you, but for the majority of small-to-medium sized businesses, effectively carrying out this work in-house requires too many resources and carries too many risks, making outsourcing a far more reliable and cost-effective method for most.

What Exactly Does A Bookkeeper Do?

If you have recently established your own business, or are thinking of doing so, there are a lot of obstacles that need to be dealt with in terms of finance. Registering with the Revenue Commission & Companies Registration Office, establishing a business bank account, finding investors, and ensuring that you understand what can or cannot be done with your business’s finances.

The last thing any new entrepreneur wants is to be caught out on financial discrepancies, especially if they are truly unintentional, as these can lead to fines, settlements, the seizure of assets, liquidation, or even jail time.

As the legal system is so complex, most people will choose to avail of professional services, such as a corporate lawyer or business accountant, in order to guarantee that everything is done correctly. Once the business is up and running, most of these services are only required sporadically, but one service you might hear about more often than others is bookkeeping.

When done well, bookkeeping should be an ongoing, even daily, process. While some people may choose to do their own bookkeeping, especially in the beginning as a money saving measure, most businesses stand to benefit from the use of a dedicated bookkeeper. But what exactly does a bookkeeper do?

A bookkeeper keeps tabs on all transactions

The primary responsibility of a bookkeeper is to keep track of every single financial transaction within a business. Bookkeepers are required to compile a complete record of all money that moves through a business in a general ledger, which is ultimately the book that they are keeping. This means that they are responsible for recording all revenue taken in by the business, as well as all costs incurred by the business.

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“A good bookkeeper should be able to detail where every cent that has the business has ever had came from and went to.”

But there is more to the role of a bookkeeper than just collecting all of the data and keeping it in one place. They are also responsible for making sure that each one of these transactions is placed in the appropriate category. An amateur bookkeeper may oversimplify this, classifying transactions as either an expense or revenue. While every financial transaction will ultimately fall into one of these two categories, that is simply not detailed or organised enough for record keeping.

Alternatively, an amateur bookkeeper may misgroup certain transactions based on their own train of thought, and not in a way that best fits the realities of financial reporting. For example, a small business owner doing their own bookkeeping may want a sum total of how much they spend on insurance, and may lump car insurance in with general liability insurance and employee health insurance.

Although these are all forms of insurance, in the world of professional bookkeeping, they are completely unrelated, and would be categorised as travel, operational, and employee benefit expenses respectively. Proper categorisation is crucial in avoiding a situation where the wrong rate of tax is applied to an expense, or possible deductions are missed.

In terms of their actual workload, bookkeepers are expected to calculate total revenue by adding up all receipts and tracking accounts receivable, ensuring that any money owed to the business is received on time. At the same time, they are tasked with tracking accounts payable, ensuring that any debts a business owes are paid in a timely fashion. They may also place and pay for purchase orders, draw up and issue invoices, and monitor the hours worked by employees to handle payroll.

Understanding what it isnt

In order to fully understand what the role of a bookkeeper is, it is important to understand what it is not. Although their work may appear similar from an outsider’s perspective, bookkeepers should not be confused with accountants or auditors.

For most people, the word “auditor” has some pretty negative connotations associated with it. While many larger companies will choose to use internal auditors to improve the efficiency of their operations and minimise risks, most auditors you will encounter in business will be conducting a review on behalf of either the government or investors.

In the hierarchy of these easily-confused jobs, an auditor is essentially the top of the pyramid. The “book” stops with them, as it is their job to search for any mistakes (or misrepresentations) made by bookkeepers or accountants, identify the true financial health of a business, and sign off on it.

Bookkeepers Gather The Required Data

While many people who do their own bookkeeping will also analyse and interpret the data themselves, especially now that bookkeeping software makes it so easy, that is typically the role of an accountant. A professional bookkeeper’s job is to collect and organise all the data available, before handing it over to an accountant to interpret and translate into simple, practical terms that can be used to make business decisions.

Accountants Review Info Provided By Bookkeepers

Accountants assess the financial health of a business and convey this to the owners and management by summarising the information and drawing up financial statements. At the same time, they are tasked with reviewing the information provided to them by the bookkeeper, to ensure that all the correct procedures have been followed, and identify any mistakes. 


The role of a bookkeeper is a very important one to any business. They are the ones who collect and organise the data upon which other members of the business will base their decisions. In the same way that a laboratory receiving the wrong samples will make their findings null and void, a bookkeeper providing incorrect or incomplete information will have a trickle-up effect that could have massive ramifications and seriously hinder a business’s prospects of success. In the business world’s neverending fight for customers, bookkeepers are your boots on the ground, and their impact should not be underestimated.


How To Get The Most Value From Your Bookkeeper And Accountant

They say there are 10 types of people in the world: those who can read binary, and those who can’t. Whether you get the joke or not, the fact is that for most of us, maths is never fun or easy to understand. It is usually a difficult chore. This is a large part of the reason that so many business owners choose to outsource their bookkeeping and accounting services. Even if you are one of the more mathematically-minded people, these are thankless, complicated, and time-consuming tasks with a lot of different moving parts, so most people will be happy to hand them over to someone else.

There are a lot of advantages to having access to expert knowledge when it comes to the financial side of your business. While your first instinct may be joy that you don’t have to spend hours every week adding up your costs and expenses, a good financial professional can offer a lot more than just carrying out the menial tasks of addition and subtraction, so here are some tips in how to get the most value from your bookkeeper and accountant.

Seek an Unbiased Opinion

If you are a small to medium-sized business, you are not likely to have a dedicated bookkeeper or accountant on-site, as the volume of work simply won’t be there. You are much more likely to hire an external service, and although you might be inclined to think that being closer to the business is better, it can be a real advantage in having someone who is one step removed involved.

Having someone who is inextricably linked to the business means that they are closer to the business, and the people who work within it. It is easier for their judgement to be clouded by the passion they feel from the team on the ground, or their perceived experiences that business is getting better, it just needs more time.

They are also less likely to confront you with negative opinions or harsh realities if they have a close personal relationship with you. And if the finances are being looked after by just one of several business partners, there is always a risk that they will distort the truth, or even just be suspected of doing so.

Having someone who is no only an expert in their field, but an unbiased one when it comes to your business, eliminates these problems. They can tell you when things aren’t working or when the numbers just don’t add up, and the risk of manipulation for personal gain is greatly reduced.

Cut Costs

Many small business owners, especially those who are just starting out, see keeping their own books as a way to save money. This is a reasonable technique, especially at the beginning when the volume of transactions is low, but as the business progresses, a professional can help you cut costs in a lot of different ways. One of the main problems with running your own business is that you get used to doing what you do, and you may be unaware that there are better ways to do it.

This can apply to things like taxes, where you may not be taking advantage of all the relief or schemes available to you, as well as your employment structure, where you may be better of hiring a contractor rather than a part-time employee, for example. But then there are also the day-to-day operations to which you may have become blind.

You may be leasing a piece of equipment that isn’t giving you a return, or be devoting your time and resources equally to different sides of the business, even though one is stagnant, while the other has the potential for exponential growth. An accountant will constantly be monitoring these trends, looking for ways to save money wherever possible, so even though you’re paying them, you’ll often save more than you spend.

Get Inside Information

Another disadvantage of taking care of your own finances is that you probably haven’t seen the finances of any other business in great detail. These severely limits your experience and means that, no matter how well you may know your chosen field, you have no benchmark by which to measure the success of your business.

No accountant or bookkeeper is going to show you the behind-the-scenes of another business, but unless you are in a particularly niche sector, outsourcing these jobs means you are likely to get someone who has experience in that area.

Through their experience of crunching the numbers for different businesses in the same field, they will get an invaluable sense for what is normal, what is a red flag, and the kind of changes you can implement to have a big impact on the trajectory of your business.

If they have been doing this for years, they can also open a lot of doors in terms of accessing other reliable professionals that can help you take your business to the next level. You may be employing them to do your numbers for you, but don’t forget that they know a lot more than that.

Improve Cash Flow

Running a successful business isn’t just about bringing in more than you send out. The timing of when your money comes in or goes out also has a big impact on your ability to run your business successfully. Keeping track of when your bills, invoices, loan repayments, and payroll need to paid can be a lot to manage, and it is quite easy to forget something.

Not only are both bookkeepers and accountants less likely to overlook payments due to be received or settled, they are experts at arranging them in the best way possible. As we have noted before, cash flow is one of the main concerns for a lot of Irish SMEs, with half being forced to lay off employees as a result of late payments.

An accountant or bookkeeper can help you arrange your accounts payable and accounts receivable in such a way that you have a steady flow of cash moving in and out. This not only allows the day-to-day operations of your business to run smoother, it can also affect your reputation and credit rating, which have a material impact on your ability to do business.


There are few people in the world that see taking care of their finances as a fun or easy task, so most people are happy to hand it off to someone else at the earliest opportunity. But when hiring a professional, remember that that’s what they are: a professional. You’re not hiring them to do the same job you were, you’re hiring them to do a better one.

They have devoted their working lives to this field, and they will undoubtedly have more insight and knowledge than you. So seek their advice as much as possible, and take it on board. Never stop asking how you can improve your numbers and your business, and you will quickly find that it becomes a lot easier to do so.

The Most Common Mistakes People Make When It Comes To Bookkeeping

The Most Common Mistakes When It Comes To Bookkeeping

When starting a new business, a lot of entrepreneurs choose to do their own bookkeeping, at least in the beginning. Although this is usually done as a money saving measure, it is always a good idea to familiarise yourself with as many aspects of the business as possible. If you choose to take on a bookkeeper further down the line, you will have a much better understanding of the skillsets they should have, as well as an improved ability to spot any discrepancies or mistakes they may make.

While doing your own bookkeeping can have its advantages, it can also be a complex and time-consuming task. Unfortunately, making even a small mistake when it comes to money can have enormous logistical and legal ramifications, and can put your business at serious risk. To help avoid this, we’re going to look at some of the most common mistakes people make when it comes to bookkeeping.


Using Your Business Account For Your Personal Expenses

The cardinal sin of bookkeeping is using your business account for personal expenses. From a purely practical point of view, this just creates more work for yourself later on. Any personal expenses that are charged to your business account need to be recorded as an owner’s draw rather than an expense, or simply reimbursed to the business account. While it is not the end of the world if you accidentally use your business card rather than your personal card, it will take more time to balance your books if you do it regularly, and will skew any analytics you may perform. Furthermore, if you ever get audited, mixing your personal and business expenses is not a good look.

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Incomplete Records

From your own perspective as a business owner, the only thing worse than muddied records is no record at all. Absolutely every expense, no matter how small, should be recorded. It may seem as though including receipts for small amounts is creating more work than it is worth, but these small amounts add up over time. Omitting them will not only lead to a situation where your expenses appear lower than they truly are, which will impact your analytics and decision-making, but will also make it seem as though some of your cash has simply vanished. Once again, this could reflect badly on you in an audit, as it may appear that you or another staff member is slowly siphoning money from the business. Everything, right down to the amount of money in your petty-cash, should be recorded.

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Improper Categorisation

Bookkeeping may be a legal requirement in order for you to ensure you are paying the right amount of tax, making the appropriate deductions, and so on, but there’s no need to view bookkeeping as nothing more than a necessary evil. When done right, bookkeeping can be one of the most powerful assets in your business arsenal. A comprehensive and properly categorised ledger allows you to identify both positive and negative trends, and make well-informed decisions as to how you should handle your business moving forward. A large part of this is about ensuring that your expenses are properly categorised.

To use a simple example, classifying legal fees as wages rather than professional services will cause your wage expenses to appear artificially inflated, which upon review could make it appear as though you are overstaffed, when you are not. By clearly and properly categorising your expenses, you will paint a clearer picture of the true state of your business for yourself, and ultimately make better decisions.

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Failure to Reconcile

Let’s face it: regulations and expectations surrounding business finance are, and always will be, complicated. Even a good bookkeeper with a well-maintained ledger will occasionally make mistakes. That is why, as unappealing as it may be, it is important to reconcile your records with your bank account. Doing this regularly, such as on a monthly basis, can help you identify any inconsistencies, and address them before they repeat or become a major problem.

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Not Creating Backups

The point of bookkeeping is to keep a record of all transactions in one place, which can serve as the go-to reference point for any financial queries. But this often leads to a mentality that there is one book or file that is the be-all and end-all of your records, while the rest of the documentation is stored somewhere else, or simply discarded. The risk here is that if that book or file goes missing without a backup, it can wreak havoc on your business. In this day and age, there is no excuse for not having several backups.

There are lots of free services such as DropBox and Google Drive where business owners can safely store files for free, eliminating the risk of losing files if your computer is stolen or breaks down. You should also take the time to photograph the pages in your physical ledger, and email them to yourself, as well as printing off another hard copy and storing it off-site.

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Need help with your bookkeeping? Contact Shelbourne Accountants Today

Overlooking Deductions & Incentives

One of the biggest disadvantages of doing your own bookkeeping is that you will not be as well-informed on all the money saving possibilities as a professional bookkeeper. This inevitably leads to a situation where people are not taking advantage of all the deductions, tax credits, schemes, incentives, and reimbursements for which they are eligible. These are often more than just small savings here and there, and they certainly add up over time, which not only costs the business money, but the owner as well.

Confusing Transfers with Revenue

This mistake applies particularly to people who use bookkeeping software, as most of these products will see any cash that lands in your account as income. The software then automatically classifies these as such, and since they usually provide the user with analytics, things can get distorted quite quickly. Usually you can easily reclassify these and nip this issue in the bud, but if you’re not aware of the issue, it can cause problems further down the line.


Bookkeeping is not an easy or enjoyable process, but it is a extremely important one. All of the mistakes listed above can easily be made by intelligent, well-meaning individuals who are simply overwhelmed by all the different aspects of the tasks. Familiarising yourself with the bookkeeping process is a good idea, and can be very helpful in the early days of a new business, but once you find your footing, engaging the services of a professional bookkeeper is an investment that is definitely worth considering.

5 Unmissable Tips That Will Make A HUGE Difference For Your Bookkeeping

Bookkeeping can be a complicated process, but it is also an extremely important one. Every business in the world ultimately boils down to financial management, and whether or not you are taking in more money than you are spending. But achieving a profit is about a lot more than just selling good stock at the right margins. Your bottom line is affected by a myriad of factors, such as stock, price, overhead costs, interest on loans, wages, taxes, and much, much more. Bookkeeping is often seen as a relatively straightforward task that is simply time-consuming, but the truth is people are frequently surprised by its complexity, and the curveballs it can throw. Since it is fundamental to the success of your business, here are 5 tips that will help you improve your bookkeeping.

1: Categorise Appropriately

A good bookkeeper should record every single financial transaction within a business, regardless of their size. This means tracking all income, and all expenses, but it does not mean you should just track them together. Ideally, you should be keeping three separate books: one for revenue, one for expenses, and one for both. Recording all transactions in a purely chronological order can be a useful tool if there are any discrepancies in your numbers, but most of the time it just makes it more difficult to calculate your total revenue and expenses, and makes it more likely that you will make a mistake. Having three separate books make it easier to calculate your totals, and gives you a reference to make sure everything has been calculated correctly.

At the same time, you need to ensure that you are using the correct subcategories in your books. Wages and utilities are both forms of expenses, for example. But many businesses will find that their wage bills will fluctuate dramatically depending on the day of the week or time of year. Your utility bills, on the other hand, will remain relatively static by comparison; the lights will still be switched on whether you have one member of staff on shift, or ten. Lumping these expenses together will reduce the statistical significance of these fluctuations, and will make it harder to identify any negative trends, such as being overstaffed.

2: Reconcile Your Records

Keeping three separate books is a great way to double check that your numbers are correct when all the additions and subtractions have been taken into account. But no matter how careful or mathematically minded you may be, it is inevitable that you will make some mistakes. Your books are an extremely important resource in terms of both the law and business planning, but at the end of the day, what matters most is the money sitting in your account. Regularly reconciling your books with your bank statements is crucial to ensuring that the records you are working with reflect the reality of your financial situation. Whether you have mistakenly recorded an invoice as paid, or failed to take into account a recurring direct debit charge, there will be inconsistencies between your books and your statements. The longer you go without reconciling the two, the harder these mistakes will be to identify, so you should be doing this once a month at the very least.

3: Back Up Everything (Including Your Backups!)

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As we may have already mentioned, proper bookkeeping is essential to ensuring the success of your business. But even if you have the most beautiful, well-kept records in the world, they don’t mean a thing if you can’t find them. Misplacing a single invoice can be pretty inconvenient, as you may forget to collect money you are owed, or suddenly get hit with a forgotten bill. Losing your general ledger can be absolutely detrimental to your business, and could land you in a lot of legal trouble.

In this day and age, there is absolutely no excuse for not having these records backed up. Services like DropBox or Google Drive will allow you to store files online for free, while apps like Expensify allow you to photograph receipts and invoices so you can create digital copies of physical invoices. These can then be easily accessed in one place, and can also be inserted directly into most forms of bookkeeping software. Getting into the habit of doing this every time you send or receive a new invoice is an easy but extremely effective way to reduce the risk of mistakes.

4: Don’t Confuse Transfers, Payments, and Loans

Despite the fact that transfers, payments, and loans all amount to cash in the bank, these three things will affect your business in very different ways. Payments are the most straightforward, as this is money you are owed, have received, and can spend as you like. All you need to do is remember that it will be taxed.

The main risk with transfers is that they can lead to situations where a payment is added twice, especially if you are using bookkeeping software. If a client pays through an online service such as PayPal, you may record the invoice as paid. But when you transfer it to your account, most software will automatically classify it as income, rather than a transfer, and this needs to be changed manually. Failure to do so can create serious discrepancies in your accounts, especially if you allow the funds to build up before being transferred, or make the transfer in a different month.

The problem with loans is that they can make your financial situation appear healthier than it is at a glance. Although a loan is cash that you are free to spend however you like, it is simultaneously an expense that is growing all the time as a result of the interest attached. Failing to recognise this distinction not only misrepresents the financial health of your business, it leaves you exposed to additional expenses.

5: Seek Professional Advice

Many entrepreneurs who are just starting out in business, or are running a small operation, will choose to do their own bookkeeping in the beginning. This is usually seen as a way to cut costs while the business finds its feet, although it can also be an educational experience. When you have a reasonable grasp of bookkeeping, you can communicate more effectively with financial professionals. But the fact is that the subject matter is extremely complex, which is why people train for years to do these jobs.

Not only should you seek professional advice early on to make sure you are going in the right direction, a bookkeeper should be one of your first investments when you can afford it. Hiring a bookkeeper will save you a lot of time, and probably a good bit of money too. They will help reign in any unnecessary costs, ensure you are paying the correct tax rates on everything, steer clear of any legal issues of which you may be unaware, and reduce your risk of being hit with unexpected costs. While paying them may appear to be an expense on paper, the time, money, and uncertainty saved is well worth the investment.


Bookkeeping is far from the most enthralling aspect of running a business, but it is one of the most important. Improper bookkeeping places the viability of your business at serious risk, you should recognise that hiring a bookkeeper is hopefully inevitable, as the workload becomes too large and complex for you to handle with a reasonable amount of reliability. The fact is that bookkeeping is, and always will be, a complicated process, and if there is one area of business where you definitely want to minimise the risk of mistakes, it’s your finances.


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Managing Customer Invoicing Payment Behaviour: The good, the bad and the ugly

Effective invoicing & cash flow management is fundamental to the success of any business, and arguably the more important half of this is the money you have coming in. Without receiving the money you are due in a timely manner, it becomes impossible for you to pay your own bills, debts, and employees, and your whole operation can fall apart very quickly. Even if you manage to stay afloat by using cash reserves or loans, the impact this has on your output, interest, and credit rating can be very damaging to your business.

Having clear invoice and payment policies and implementing them consistently is crucial to ensuring you maintain as much control over your cash flow as possible. But no matter how clear and consistent you may be, you will always encounter customers who have varying degrees of respect for your policies. Below, we examine the good, the bad, and the ugly customers you are likely to encounter through your invoicing process, and advise you on how to approach each one.

If you need expert support with your invoicing, contact Shelbourne Accountants today.


The Good

“The Good” customers are those who pay their invoices on time, early, or instantly. Needless to say, these are the most desirable customers to have. Having a reliable idea of how much money you can expect to get in and when makes it much easier to manage your cash flow and ensure that you can pay your own expenses on time. This is especially true if “The Good” is a regular customer, as opposed to one who engages you sporadically or as a once off.

Your top priority with “The Good” customers is to maintain a positive working relationship. There are many aspects to this, from the basics of being friendly and polite, to the more advanced, such as anticipating when they may be interested in a new product or service, or quickly and faithfully resolving any disputes that may arise. With customers like these, even down selling, where you suggest that a cheaper good could help them achieve the same results, can be a good idea, as it establishes a trust that could allay any fears they have about placing a much larger order in the future.

Being considered a part of “The Good” group is a result of a pattern of behaviour, where someone consistently pays on time. Of course, all businesses have their ups and downs, so if one payment is late after many months of on-time payments, it is advisable that you show them some extra leeway, and consider waiving any late fees you may normally charge.

The Bad

As you are no doubt well aware, not everyone you do business with will take it as seriously as you would like. Whether it’s because of unprofessional behaviour or a lack of attention to detail, you will always encounter people who are difficult to work with. In terms of invoicing, “The Bad” are not the worst group, but they are far from perfect, and they can make your job a lot more difficult without really trying, which is often the case.

“The Bad” are probably best described as people who have been hired to pave the road to hell: they have good intentions, but they consistently drop the ball. Usually these are people who mean to pay you, but frequently forget. They are often unresponsive to your correspondence and can be hard to get a hold of, but will ultimately cough up when asked. Still, this can be incredibly disruptive to your cash flow, as you will have a general idea of when you will be paid, but cannot rely upon it.

The best way to deal with “The Bad” customers is to be firm but fair. You want to try and maintain as positive a relationship as possible with these people, but you ideally want the inconsistency to come to an end. If the customer’s order is a recurring one, setting up a direct debit could be a simple solution. If not, you need to make the process of paying as easy for them as possible, as it will increase the likelihood that they do. This means sending out your invoices as soon as possible, providing clear payment policy at the point of purchase, and sending out email reminders. Ideally, these should be sent a few days before payment is due, on the day itself, and a few days after, and if possible, the email should include a link to an online payment portal. If these emails go unacknowledged, they should be followed by a phone call.

If you have clearly indicated in your payment policy that late payments will incur a penalty fee, don’t be afraid to use that as leverage. It is worth considering waiving the first fee, as this will leave the customer with a positive impression rather than a negative one, and gives you firmer ground to stand on if payments are late in future. You could also offer a discount for early payment, but this would need to be available to all customers, and you would need to consider the cost of doing so.

The Ugly

Lastly, we have “The Ugly” customers. These are the people who regularly pay late, are deliberately evasive when you try to get in touch with them, and frequently dispute the amount on their invoices or the quality of the good or service provided. While it is important to look at the trend of your customer’s behaviour, you can usually identify pretty early on if someone is a member of “The Ugly”.

Many of the ways to deal with these customers are the same as dealing with “The Bad” customers: issuing invoices as soon as possible, sending out reminders, and following up with a phone call. With “The Ugly” customers, it is important to be firm when charging late fees, as failure to do so will only give them less of an incentive to pay on time. And while you don’t want to get aggressive, you need to realise that if you don’t chase these people relentlessly, you may never see your money.

In addition to those techniques, you should also try to create as much of a paper trail as possible, as this will help you resolve disputes when they arise. Immediately provide them with a clear summary of their order, and ask them to alert you of any mistakes within a certain timeframe. If none of this works, you can always sell the debt to a collection agency, but only if you are prepared to lose the customer.

Not all customers are created equal, and unfortunately, the good, the bad, and the ugly are all creatures that naturally inhabit the business world, and it is inevitable that you will continue to encounter them all. Identifying who belongs to what group and learning how to deal with each one are skills you will hone throughout the entirety of your career, but the advice laid out above should help you to get off to a good start.


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If you need expert support with your invoicing, contact Shelbourne Accountants today.

Do's & Don'ts For Successful Payroll Management

Do's & Don'ts For Successful Payroll Management

Whatever your business may be, payroll is likely to be one of the biggest, if not the biggest, expense. This alone is enough to make most good business owners want to get it exactly right, but payroll management can be stressful for many other reasons as well. It can be a somewhat complicated process, which can cause employers to stress over any potential mistakes or legal issues. And of course, there is the purely human aspect of wanting to ensure that your employees get paid the money they are due. There are many reasons why payroll is important to a business, so here are some of the biggest dos and don’ts of effective payroll management.


1: Do Consider Your Timeline

One of the first things an employee wants to learn once they know how much they will be paid is how often they will be paid. Typically, there are four ways to do this. Weekly pay means an employee will be paid 52 times a year; bi-weekly means they will be paid 26 times; bi-monthly is slightly different, and will result in about 24 payments; and monthly equates to 12 payments.

Regardless of whether an employee is on a fixed wage or an hourly rate, the number of payments will not affect how much they ultimately receive. But while most employees prefer to be paid as often as possible rather than receiving larger amounts less often, this can be more expensive. The costs of printing cheques, paying direct deposit fees, and the time spent calculating how much is due to be paid all increase the more frequently you do it, so you need to consider which frequency is most efficient for your business.

2: Don’t Miscalculate

By definition, a mistake is something you don’t want to make, but while ordering the wrong amount of stock or sending out the wrong order can be inconvenient, payroll mistakes can be very serious. Miscalculating tax can have serious legal repercussions, especially if it is a recurring problem. Overpaying your employees will obviously lead to unnecessary costs and may leave you wondering why your books do not add up. Underpaying your employees on the other hand not only erodes their trust in you as an employer, but can also have major legal and financial repercussions further down the line. For example, a U.S.-based company called West Marine Products underpaid 707 of their employees by a few cents over 5 years. Despite the fact that 88% of these employees were underpaid $50 or less in this period, totalling $18,828, a class-action lawsuit resulted in a payout of $435,000.

3: Do Get Software

One of the best ways to expedite the payroll process and reduce the risk of mistakes is to invest in payroll software. This might not be necessary if you are running a small operation, but if you have more than a handful of employees, it is probably a good investment. In addition to keeping track of various employees and making more accurate calculations faster, payroll software offers a number of other benefits, such as offering an extra layer of security for sensitive personal information, as well as keeping a record of the total annual expenditure.

4: Don’t Invest in an Expensive System

That being said, there is a plethora of payroll software available on the market, and not all of them are created equal. Different products will have different pricing structures, although most will be some sort of subscription model. These prices will reflect the services offered by the software, such as the number of employees you can register, or the number of administrators permitted to access the software. Many will also offer features such as synchronising with your financial modelling software or paying in multiple currencies. There are many features available that your business simply will not require, so shop around, see what features you really need, and try don’t commit to anything longer than 6 months so you can switch or upgrade your subscription if need be.

5: Do Direct Debit

Most of these softwares will have the option of paying your employees by direct debit, which in most cases is preferable to paying by cheque. Apart from eliminating the need to print cheques, direct debit is more reliable, faster, and much more popular with employees, who will have greater control over where their money goes, and won’t have to try to rush to the bank before closing at peak times each week just so they can use the money the already have.

6: Don’t Trust the Software too Much

As helpful as payroll software can be, technology is never perfect. But while a human may notice a mistake made by themselves or someone else, a computer will simply follow its algorithms, and won’t notice if someone is receiving a large payment despite only being in work for a few hours, for example. No matter what software you invest in, its results needs to be examined by human eyes.

7: Do Make a Backup Record

It is also important not to get too complacent with the features offered by your software. They may boast about their security features and backup procedures, but it is your business at stake, and you shouldn’t put total and complete faith in another company to protect it. All it takes is one hack or bug for them to lose lots of your essential data, so be sure to backup all your files, preferably as both a hard copy and on some sort of external hard drive.

8: Don’t Pay Late

Finally, one of the most fundamental aspects of payroll management is making sure you pay people on time. Many employees simply cannot wait an extra few days or even weeks to be paid, and paying late, especially if it is a regular occurence, will erode your relationship with your staff and give you a bad reputation.

In some ways, payroll management is a lot like being a parent: people will rarely notice the long list of things you got right, and are a lot more likely to notice when you get something wrong. It may often seem like a thankless task, but it is an incredibly important one, and successful payroll management can be the thing that makes or breaks a business.

See how our team can help you with your payroll management

10 Tips To Keeping A Positive Cash Flow

10 Tips To Keeping A Positive Cash Flow

The term “cash flow” refers to any money that moves in or out of a business. Maintaining a positive cash flow means keeping more money coming in than you have going out. This is essential not only for the end result of making a profit, but also for enabling your business to run on a day-to-day basis. Cash flow is essentially a barometer for the health and success of your business, so here are 10 tips to keeping a positive cash flow.


1 - Track Everything

From the very beginning, you need to get into the habit of knowing exactly where every bit of money related to your business is coming from and going to. One of the most important aspects of making a business successful, particularly a new business, is making sure that it is running efficiently, and this can only be achieved by keeping as close an eye as possible on your finances. This will help you identify your most popular and profitable products, and enable you to make well-informed business decisions based on fact.

Tracking your financial trends rigourously will help prevent negative dips

Tracking your financial trends rigourously will help prevent negative dips

2 - Identify Negative Trends

Another advantage of comprehensive financial monitoring is that it allows you to identify and address any negative trends. Without keeping track of which products or services are selling and which are not, you might get a general idea of what your customers do or do not like, but it will never paint as accurate a picture as numbers on a page. Furthermore, you may find that certain products or services are selling, but are actually running a loss when all things are taken into account, such as storage or delivery costs. Rigorous financial tracking can reveal trends that you otherwise simply would not see.

3 - Test the Bang for your Buck

With all that being said, you should also bear in mind that just because something is not running at a loss does not mean it is running as efficiently as possible. For example, LED bulbs cost about 4 times more than normal light bulbs, which puts many people off buying them. But not only do LED bulbs lower your energy bills, they also last about 15 times longer, and should pay for themselves in about 6 months. Alternatively, you likely use some sort of software in your business, whether that be for mailing, payroll, or EPoSS (electronic point of sale software). There is such a wide variety of options for all of these today that different brands offer different features according to their own pricing structure, and by shopping around, you may find one that is better suited to your needs for a similar or even lower price.

4 - Save Some for a Rainy Day

The term cash flow refers specifically to the movement of your money, but the flow of cash is not as reliable as the flow of the tide. There will be times when you do not have as much money coming in as you normally would, such as unpaid invoices, lost clients, or seasonal lulls. But while you may not always have money flowing in, you will always have money flowing out to things like wages and utility bills. Since these are necessary expenses, without which the business cannot function, you need to build up some sort of rainy day fund to fall back on, or you run the risk of being unable to bring cash in, even when the customers come back.

5 - Use Discounts and Late Fees

Anyone who issues invoices will tell you that getting them paid is a lot harder than you might expect. Even if they are issued to big corporations that can afford them, or people with whom you have a good relationship, you will inevitably find yourself chasing after them on more than one occasion. One way to curtail this is by offering discounts on early payments, and charging fees for those paid late. The ability to save some cash, or the threat of losing some unnecessarily, are surprisingly powerful incentives, and can save you a lot of time, anguish, and inconvenience.


6 - Take Deposits on Large Orders

Receiving a large order is very exciting for any business, but there is always the risk that the order will fall through. If this happens, it can be a devastating blow, which is why it is so important to ask for a deposit upfront on large orders. The obvious advantage to this is that it lessens the damage dealt to your business, but it could also mean that you are able to sell on any stock you may have invested in so far to another client at a discounted rate, or maybe even full price, which will increase your profit margins on that stock. Furthermore, customers are far less likely to drop out of a deal if they have already invested in it, as they will often prefer to get something rather than nothing in return.

Avoid the potential risk of a large order falling through by taking an up front deposit.

Avoid the potential risk of a large order falling through by taking an up front deposit.

7 - Provide Clear Payment Instructions

You should always remember that nobody cares about the money you are owed as much as you do, even if they’re the ones who owe it to you. While a good business owner will always know how much they owe and to who, the reality is that not everyone pays as close attention to this as they should. By providing clear payment instructions, you minimise the risk of people forgetting what they owe or misunderstanding when it is due. Invoices should be issued as soon as possible to allow for any disputes to be resolved early, and email reminders should be sent a few days before, on the day, and a few days after, if necessary.

8 - Reschedule Payment Dates

Whether it’s coming in or going out, cash never really stops flowing through a business. Ideally, you want that flow to be as steady and predictable as possible, and avoid situations where you are hit with a sudden wave of expenses at one part of the month, and a surge of income at another. This could lead to a scenario where you owe a lot of money, but know you won’t have any coming in for several weeks. Arranging your outgoing and incoming payments so that they are spread evenly across the calendar gives you a lot more flexibility and security, and also makes it less likely that you will spend frivolously.

9 - Use Credit Wisely

Although you always want to have some sort of rainy day fund, having a line of business credit to fall back on can be an added layer of security. But credit can be a complex thing, so you want to start thinking about it before you need it. Even if you have cash to burn, paying your expenses with credit and then paying that debt off on time helps you establish a good credit rating. When doing this, your best option is to maintain a low credit utilisation ratio, which means using only a small percentage of what you are entitled to use (ideally under 30%). This demonstrates that you are a responsible spender and reliable debtor, which will make it far easier to increase your maximum limit in the future.

10 - Consider Outsourcing

While all business owners, especially new ones, want to keep their expenses as low as possible, you need to look at this in terms of how much your time is worth. If it takes you the better part of a day to do your own payroll, you have to consider that you could be spending that time bringing more cash into the business. If the amount you could make in sales is far greater than the cost of outsourcing to a payroll company, refusing to do so is simply a short-sighted decision.


Maintaining a positive cash flow is something that will always be at the forefront of a business owner’s mind, but doing so means looking at a lot more than just the bottom line. Although profit is the ultimate goal, this can only be achieved by looking at the day-to-day decisions you make. In the end, there are countless factors that can affect your cash flow, but the topics laid out above are some of the most impactful, and remembering these will make it a lot easier for you to achieve a positive cash flow.

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See how Shelbourne accountants can help your business today

5 Reasons Why Your Small Business Needs A Good Bookkeeper

Every small business should have a good bookkeeper.

If you run a small business, particularly one that is just getting started, your finances will be at the forefront of your mind. You will likely have a plan for every penny in your pocket, and will be doing everything to keep costs as low as possible. For these reasons, you may think that hiring a good bookkeeper is a luxury for further down the road, when really it could be a factor that makes or breaks your business. Below are five reasons your small business needs a bookkeeper.


Bookkeeping takes considerable time and effort

Even if you’re a mathematical whizz who got straight As in school, bookkeeping takes a huge amount of time and effort to do properly. Money is coming in and out of every direction, and it quickly becomes very easy to lose track of things. Trying to keep on top of it when there are a million other aspects of your business calling out for attention is a difficult thing to do, and then there come the moments when you realise the final tally doesn’t add up, and you have to go through everything again to find where it all went wrong. In the end, bookkeeping is a black hole that will literally devour your time and pull you away from other tasks.

Handling Payments with Consistency Is Key

When getting started out in business, it’s not unusual for there to be a little bit of disarray, and many suppliers will be somewhat forgiving of this. To a point. But if you are constantly paying late and allowing bills to stack up, people begin to lose their patience rather quickly. More importantly, if you are sending out invoices inconsistently, your incoming cash flow will be inconsistent, which means your outgoing payments will be too. If you don’t know how much money you’re going to need and have at any given point, you may suddenly find yourself unable to replace stock, because your outstanding bills are so high, even if your customers have assured you that their cheque is in the mail. All businesses ultimately boil down to finance, and this level of inconsistency and uncertainty will ultimately come back to haunt you.

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Bookkeeping helps to set targets towards running your business smoothly

If this is your first business, you will be familiar with the fear you feel when you lock the doors after an abysmal day of trading. That same mindset can put dollar signs in your eyes when you suddenly have a day that goes much better than expected, but it’s important not to lose the forest for the trees. One day of doing twice as good as expected is not enough to cancel out three days of weak sales. With proper bookkeeping, you’ll know how much you need to bring in to keep the doors open, not just in a day, week, or month, but all year round. Without a firm target in your sights, it is easy to think things are going a lot better than they are until it all comes crashing down.

A bookkeeper will provide Neutral, Expert Advice

When you hire a bookkeeper, you should remember that you are not just their employer, you are their customer. They want you to keep bringing in cash, because that means they will too. They may not feel the same love and passion for your business as you do, but that also means they won’t be as blinded by fear when things get tough, and will be able to assess the situation in a more logical manner. Furthermore, while this may be your maiden voyage, they will have navigated troubled waters before, and the benefit of that experience is invaluable when it comes to course-correction. The bottom line of your business is your bottom line, so if there is one area where you want logical, expert advice, this is it.

Complexity

The business world is not just complex because of things like calculating profit margins or estimating supply and demand. Whether they come from the Irish government, the EU, or the WTO, regulations abound, and there will be countless challenges, expenses, and blockades that you never would have considered. Similarly, there will be advantages, incentives, breaks, and aid that you may never find on your own. With so much to think of already, a firm and accurate grasp of the legal systems in which you operate is not something you will pick up overnight, but a simple, honest mistake can wreak havoc on your ability to operate. Rather than trying to figure things out as you go, hiring a bookkeeper and learning through observation will serve you best in the long run.


For many new entrepreneurs, hiring a bookkeeper may not seem like the most pressing issue. Most are fired up about their new business, and are trying to do everything they can to make it work. But doing everything you can does not mean doing everything yourself. It may appear that holding off on a bookkeeper is keeping costs down for now, but it is only when you see the cost-benefit analysis in action that you’ll realise how much bang you are truly getting for your bookkeeper.

5 Things That Contractors Starting Out Should Know About From A Financial Perspective

Some things to consider as a start up contractor from a financial perspective.

In just the past few years, the nature of work has undergone a dramatic transformation. While contractors and freelancers have existed for a long time, technological advancements mean that an increasing number of people are drawn to the idea of being their own boss.


Like starting a new job, becoming a contractor can be an intimidating experience. But when you do become a contractor, you have a lot more to worry about than making new friends or meeting sales targets. There are many advantages to contract work, but the financial side of things is very different to that of a traditional 9-5 job, so here are 5 things that start out contractors should know from a financial perspective.

Be Prepared For Financial ups & Downs.

One of the most obvious qualities of contract work is that you won’t have a steady income. Your income one month will be totally different to the months behind and ahead of it, particularly when you are just getting started. Even if you have a few different jobs lined up for the near future, or the promise of regular work, nothing is guaranteed when you are a contractor.

For this reason, it is important to plan ahead, to have some cash you can fall back on, and to be prudent with your spending while you get a feel for your cash flow. Ideally there should be some overlap between the job you are leaving and the contract work you do, so you can make an informed decision about when to take the leap and fully immerse yourself in contract work.

Consider your Pay Rate

If only out of curiosity, most of us have calculated how much we earn per hour. When you become a contractor, this figure can suddenly seem to jump dramatically. While most companies don’t mind paying a higher amount to contractors, because it’s still cheaper than hiring a full-time employee, you need to remember that the per-hour wage is not as scalable for contractors as it is for full-time employees.

Even if you get paid €100 for an hour’s work, you’re not going to fill 40 hours with that rate, and certainly not at the beginning, so don’t expect to be taking home €4,000 a week in the near future. There will always be 168 hours in a week, but there won’t always be 40 hours of work, so you have to stretch whatever you take in.

Be Confident in the value of your work

New contractors often feel awkward when it comes to putting down a price for their work. Many people will be afraid that charging X amount for Y hours will make them look arrogant, or unrealistic. Furthermore, there is a fear that no matter what number you put down, someone else will be willing to do it for less, which drives many people to undervalue their work. Ironically, this can sometimes cost people business, as a lack of confidence can make it seem like the quality of your work is not as high as your competition, and a business may be willing to fork out a little more if they think the result will be better.

This is a hurdle all new contractors must overcome. One of the best ways to do so is to join an online group and ask others how they arrive at their own valuations. There will be plenty of people online with the first-hand experience to know what works, and since most of them won’t be your direct competition, you can get some truly great advice for your specific field.

The Lack of security as a contractor

For all the advantages of contract work, one of the biggest disadvantages is a lack of security. While a person in full-time employment may be entitled to paid annual leave or sick days, contractors enjoy no such benefits, and only get paid when they actually hand over work. For this reason, it is important that you put aside a portion of every pay cheque, no matter how small.

You need this rainy day fund to tap into, because further down the line, whether you simply want some time off or find yourself unable to work, there will come a time when there is no money coming in.

Self Employement and taxes

In order to keep everything above board and avoid incurring penalties further down the line, it is important to register as a self-employed person from the get-go. This can be a little daunting, as people fear running afoul of the tax man, so it may be in your best interests to get some advice from an accountant, or someone who has already been through the process.

The good news is that there are advantages to being self employed with regards to tax, such as a reduced USC rate, and an earned income tax credit for self-employed people that is set to rise from €1,150 to €1,350 in Budget 2019. Making sure you take advantage of all the benefits available to you is another reason to seek expert advice, at least in the beginning.

Entering the world of contract work can seem scary and complex at times, but it can be an attractive alternative to working for someone else. There will be risks and challenges involved, but if you plan properly and do things right, contract work can offer you a tremendous amount of freedom and satisfaction, as well as a high quality of life.

If you would like to discuss anything from this article or have any other questions relating to working as a contractor, get in touch with us today and we’ll be happy to advise you.

Signs of a brilliant bookkeeper

Good bookkeepers are as frequent as rain in Ireland but a truly great bookkeepers are as rare as a week of sunshine. As a business owner you need to recognise the impact a bookkeeper can have on your business Being so rare it’s difficult to hunt a great bookkeeper down but here are some tips on how to know one when you see one.

 

Educate Themselves On Your Business Needs

Great bookkeepers take the time to adapt to your business and understand how you operate so they can make sure that the processes are as simple and efficient as possible. They will be able to identify opportunities for your business to be more organised, labour-saving and efficient.

Excellent Communication Skills


Great bookkeepers are great communicators they are able to explain complex ideas in easy-to-understand ways, if your bookkeeper regularly uses accounting and bookkeeping jargon, the conversations you have will feel restricted and unproductive. Look for someone who’s willing to communicate key concepts at a pace you’re comfortable with, and don’t be afraid to ask questions!

Experience In Your Particular Industry

What may seem like a good bookkeeper to most could be a great bookkeeper in your industry. Working with a bookkeeper who has expertise in Legal bookkeeping would be very different than working with one who has experience with retail. Specialised bookkeepers can provide reports on how your business is performing month-to-month, and have an idea of what success metrics look like in your industry.

Evolve With The Industry

A sign of a really great bookkeeper is one who is up to date on what is happening in the bookkeeping, accounting and technology spaces. The bookkeeping and accounting industries have evolved considerably over the past few years due to changing technologies. When bookkeepers utilize the latest business software and technologies, it shows that they’re committed to increasing efficiency and providing a more robust service. Great bookkeepers should be explaining to you and encouraging you to use technology to save time and money by automating processes with cloud accounting packages.

Are Trustworthy

Finally, the relationship between a client and a bookkeeper is sacred. Most people won’t share their financial details with friends or even family, so it is important when picking a bookkeeper that it is one you can trust. Great bookkeepers are transparent with things like billing and pricing, they’re responsive and you never have to question what kind of value they’re adding to your business, you are one of the lucky ones that have a great bookkeeper.

How "PAYE Modernisation" will affect Employees and Employers?

In 1960 Revenue introduced the PAYE system. This system was designed for employees and employers to have the most accurate, up to date information relating to pay and tax deductions. Ensuring the right tax deductions are made by the right individuals at the right times, improves the accuracy, understanding and transparency for all the stakeholders. This version of the PAYE system has been used for the past 60 years but for not much longer…

On the 1st of January 2019, the PAYE system will get a long overdue update to evolve with the times. For example, people switch job more regularly and changes in personal circumstances   ( i.e marital status) are much more common compared to when PAYE System originally launched

Now you are probably wondering what do these changes mean for me. Don’t worry, this update will benefit both employers and employees.

 

For Employees

Before the start of the tax year, an online statement will be sent detailing your tax credits and standard cut-off points for the upcoming year. This will be based on estimated income and information available to Revenue for the employee. Employees will be prompted to make any necessary adjustments to or to update this online statement, including claiming any additional entitlements. This contrasts with the current system where the employee must wait until the end of the year for such reconciliation and wait for any refund or be faced with a tax underpayment.

For Employers

This update will have changes on how employers pay their employees. When processing payroll, a file must be submitted (electronically) to Revenue containing details of employee payments. The contents of this file will be like the details currently submitted in the annual P35, but unlike the P35 this file must be submitted each pay period e.g. weekly or monthly.

The update enables employers to submit a new employee’s detail before they start employment their details. This allows the final payroll run in the year will generate a pre-populated statement setting out the total tax deductions for the year both at the level of the employer and the employee. This, in turn, should reduce incidences of year end over/underpayments of income tax.

This new reporting process by employers to Revenue is anticipated to be fully integrated into the employer’s payroll run and will result in a significant modernisation of business processes and reduce the administrative cost for employers.

To discuss these changes further Contact us

Should You Do Your Own Bookkeeping?

Should you do your own bookkeeping? Similar to the DIY mentality of the husband doing the plumbing, probably not. Except in this case instead a flood of water in your kitchen you have a flood of paperwork in your office leading up to an audit. It’s not a question could you do your own bookkeeping, it’s not even a question of why should you, it’s a question of why would you? Here are 3 reasons why doing your own bookkeeping isn’t in you or your businesses best interest.


Control

Oftentimes business owners are notorious for Micro-managing. Observing and undertaking any and every task that the business needs. This is unnecessary stress inducer, learn to trust in the ability of the people you hire. You can’t control everything in business. Trying will only lead to frustration. Control the things you can. Attempting to be the jack of all trades will lead you to be the master of none.

 

Time is money

A lie business owners tell themselves when deciding to do their own bookkeeping is that they will make time. Realise that you are highly skilled and that your time has value, after all time is money. If you're hell-bent on being in control of your business's financial health, then you likely need to make the time commitment. Why not commit your time by focusing on what you do best?

 

Interest

It is almost normal not to enjoy maintaining accurate accounting records, it’s a tedious task that can have you leaving the office drained. This can change your outlook, motivation and efficiency in the workplace in a negative way. Don’t under estimate the power of a positive mind-set on not only your work efficiency but the impact it can have on your personal life.

Is your bookkeeper retiring? Here's what to do next.

The working relationship you have with your bookkeeper is oddly intimate, there is a lot of trust involved and a sense of loyalty to one another. This makes the bond hard to break even when it’s in the individual’s best interest. It can be a bit scary when your long-term bookkeeper retires. When looking for a replacement its important you know they will be just as efficient, reliable, honest, and flexible. Here's what to do when your bookkeeper retires:


Bookkeeping is most likely not your forte and now that your bookkeeper is gone, you might be feeling more lost than ever. Find the silver lining and view this situation as an opportunity for you to rebuild how your business financials are being managed, and assess what other aspects of your business can use some fine-tuning and implement. Technology is ever changing in the world of bookkeeping and a new bookkeeper armed with the latest tech and strategies can greatly benefit your business.


As you get ready to start fresh, take some time to consider what your options are. When you’re considering who your next bookkeeper will be, don’t be afraid to ask hard-hitting questions. Look for someone who will nurture the business relationship, who specialises in your particular industry, has a positive track record with their other clients, and someone who’ll go the extra mile.

Also, it is important that you ensure a smooth transition and get all of your latest financial reports and files from your old bookkeeper. Your new bookkeeper needs this data to do their job efficiently. Accuracy is essential in bookkeeping. Without proper records it's a dangerous guessing game at your expense.

It's important to know the signs of a brilliant bookkeeper before finalising your selection. At Shelbourne Accountants our bookkeepers have experience in a variety of industries which allows them to offer sound practical advice to assist you in the day to day administration of your business.

For further information Contact Us.