2018 NEW BUSINESS GUIDE
TIPS TO GET YOUR FINANCES BACK ON TRACK
ADDING VALUE TO YOUR BUSINESS
SETTING BUSINESS GOALS FOR 2018
DOING BUSINESS IN KINSALE
BUSINESS CENTRE: OUTSOURCING YOUR ACCOUNTS FUNCTION
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TABLE OF CONTENTS New Business Guide Tips To Get Your Finances Back On Track Event Networking 101 Adding Value to Your Business Tech Savvy Setting Business Goals for 2018 How To Inspire Trust In Your Staff Doing Business In Kinsale Millennials In The Workplace Business Briefs Legal Briefs Business Centre: Outsourcing Your Accounts Function Range of Services
Welcome to the February 2018 edition of our newsletter.
This newsletter contains articles which I hope will be of interest to you and your business. We have an experienced team here at Fitzgerald and Partners, so please do not hesitate to contact us with any queries you may have.
All the team at Fitzgerald and Partners
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NEW BUSINESS GUIDE to Starting your own Business for SMEs It is the ambition of many people to run their own business. In recent years this dream Has become a reality for some made redundant, whilst others may decide to start up in business to be more independent and to obtain the full financial reward for their efforts. Whatever the reason for considering setting up in business, a number of dangers exist. A major concern must be the risk of business failure despite considerable effort and finance having been put into the venture. Time spent in making the decision and thinking through your plans will minimise the risk of failure.
Click on thumbnail to view Business Guide
ҊҊ Selecting a Legal Entity for your Business
ҊҊ Registering with the Authorities
ҊҊ Accounting and Bookkeeping ҊҊ Value Added Tax ҊҊ Payroll Taxes ҊҊ Income Tax & Corporation Tax ҊҊ Cash Planning and Forecasting ҊҊ Obtaining Credit and Financing your Business
ҊҊ Insurance ҊҊ Selecting Professional Advisors ҊҊ Computer Accounting Systems for First Time Users
ҊҊ Growth Strategy Template
Think carefully about ceasing to be someone else’s employee. Certainty of income, both in terms of quantity and regularity, disappears, whilst fixed outgoings, such as mortgage repayments, remain. Similarly, other benefits of employment may be lost, such as life assurance cover, a company pension, medical insurance, a company car, regular hours and holidays. Consider the views of your family and friends. Their support is essential. It is important they understand that the administrative and financial requirements of running a business can be time consuming and stressful. Success in business depends on many factors; most important is the need to critically review all aspects of the business proposition before progressing too far. This guide highlights many of the practical points that require consideration before trading begins. It cannot cater for every possibility and decisions should be supported by appropriate professional advice. We wish you the best of luck on your journey. Please select a good team of advisors to help you. Our team at Fitzgerald & Partners would be delighted to help you in any way possible from a business advisory aspect through to compliance. Please follow us on social media for regular updates.
TIPS TO GET YOUR FINANCES BACK ON TRACK How to recover financial health after spending too much over the holiday season.
December is a time of over-indulgence. We spend too much and we eat too much. For many, the first few months of a New Year is a time of inflated waistlines and shrunken wallets - not to mention the bills piling up until they can no longer be ignored. If this describes your position right now, keep on reading... Many people start the New year in arrears, stretching just to pay the minimum balance on credit cards. Unless you up your repayments to clear that debt, you may find yourself in the same position - or worse next year. And keeping it up will result in repaying these debts for the next twenty years. Here’s how you can keep your head above water and reduce your debt.
1. DEVELOP A REALISTIC BUDGET
Avoid unrealistic budgeting or setting too tight a budget that will be impossible to stick to.
If you absolutely need it to survive, it is a want. If the item fits comfortably into your budget, by all means, go get it. However, if you can’t afford the latest gadget (and you can survive without it), you will have to set aside the money until you’re able to afford it.
Start by drawing up an annual budget. Knowing the exact running costs of your monthly household bills will help you plan your budget properly and if there is a surplus, you can plan for that too.
Economics 101 teaches us about the difference between ‘‘needs’’ and ‘‘wants’’, but it is hard for most people to put that into practice. It’s much more fun to spend money on wants than on needs.
Track your spending using a notebook or on your phone so that you can learn to budget realistically. Keeping a comprehensive budget will also help you to prioritise your spending and identify areas where you could economise.
3. DON’T COUNT YOUR CHICKENS UNTIL THEY’VE HATCHED
Perhaps you can even create a surplus fund that will allow you to save towards short- and long-term goals, and develop a savings programme. EBS offers the best regular saver programme in Ireland, allowing you to save €100 to €1,000 per month for an agreed period of up to 12 months at 3%.
Few things in life are guaranteed, so don’t spend your money until it is in your account. You may have received a bonus last year, but that doesn’t mean it will happen again in 2018. A bonus is really nothing more than a windfall and should be treated as such. If you receive one, that’s wonderful, but do not factor it into your budget until you receive it.
Make the mental shift to understanding that your goals everything from next Christmas to the exotic trip and the deposit on your new home - require planning and savings.
Develop a mindset of counting only on your monthly salary or your business’ net profit at the end of the year.
4. KEEP A TIGHT REIN ON YOUR FINANCES
7. BE CREDIT SAVVY
Credit is a great backup plan that must be used wisely. You can avoid some of the unexpected pitfalls by reading the fine print on your credit agreement and by paying on time. Ultimately, it is best to limit the amount of credit you have. Remember that every late payment is recorded by The Irish Credit Institute (ICB) and it will soon also be in the all-new Credit Registry.
Don’t put yourself at risk by allowing someone else to control your money. If you earned it, you need to know how it is spent. Understanding your family’s finances - including income, investments, retirement savings and debts - will help you navigate negative situations such as illness, divorce and death better. These situations can put married individuals at risk, and it can add financial strain to an already emotionally strenuous situation. Much stress and tension could be avoided by knowing the details of one’s finances.
The majority of credit card companies charge 20% and more on balances. While you may not be able to clear your maxed out credit card just yet, you may be able to transfer your balance to them at 0% for six months. This should give you some breathing space. Use this time wisely by coming up with a solution to your debt repayment.
On that note, it is important to prepare a will. For elderly people, insist on enduring power of attorney.
All lenders will always check your ICB credit standing on home loans, car finance, credit union loans, and switching banks.
Single individuals should know exactly where all their money is and what financial consultants or brokers are doing with it. By being involved in the process, you can negate any questionable activities that might negatively impact your future finances.
8. REMEMBER RETIREMENT
The sooner you start saving for retirement, the better. When you start early, you will need to put away less every month as it will give your savings more time to grow. You should ideally save 15-40% (age depending) of your income if you wish to accumulate enough wealth to live comfortably in retirement.
Always avoid anything that sounds too good to be true, or that you do not understand.
5. THINK BEFORE YOU BUY
Ireland is home to 677,000 citizens aged 66 and over. This number will increase to 1.8 million by 2050. In 2013, there were six workers for every retiree, but by 2050, each retiree will represent two people in the workforce. Our lifespan has increased, and we have become healthier. That means that we need more money for retirement.
When it comes to spending your hard-earned money, make your decisions based on what you need and not on want. Leases and loans will lock you into a monthly recurring payment that may influence the amount of money you have available for emergencies such as car repairs, medical costs or replacing items that break in your home.
Recently, the ESRI recommended that the age of retirement be increased to seventy and government will gladly delay auto-enrolment, which forces employers to contribute to employees’ pensions until 2021. That means that now is the time to start contributing to a pension scheme.
Studies have shown that emotions influence spending decisions by 95%. The cost only influences decisions 5%. Personal finance is influenced 20% by knowledge and 80% by behaviour.
Speak to a registered financial adviser about the best options for your needs. Since not all savings are guaranteed, it is important to choose an option based on your risk category with which you are comfortable. A good financial adviser will be happy to check your fund with you every year and provide explanations of its performance.
Thinking before you buy can help you avoid becoming overextended financially. Examine your budget and expenditures to ensure that you can easily afford something you wish to buy before you commit. This principle applies to all types of investments, including phone contracts, new cars, homes or investments.
9. WEIGH UP YOUR OPTIONS
Most lenders will not approve loans with repayments that exceed 35% of your net monthly earnings. The rest should go towards your other living expenses.
The longer the repayment term on a home loan, the more you pay. In the long-term, you can end up paying two-and-a-half times the value of the purchase. Save money by opting for a 15year mortgage and start building wealth. Lending institutions will soon offer 15- and 20-year fixed term interest rate options, which will make it worth your while to shop around.
6. SPEND CASH - NOT CREDIT
If you spend more than 20% of your monthly net income on loans and credit cards - excluding your rent and mortgage - you need to make a few changes. This is a major red flag signalling potential future financial problems.
10. ROLL OVER YOUR PENSION
When you buy items on a credit card and you fail to pay off the balance, it will cost more in interest charges and that will impact on your savings over time.
If you have a pension and decide to change employers, find out about the options that are available to you. You should be able to take back your contribution if you have been paying for less than two years. Then you may either transfer the money into a self-managed pre-retirement bond that will give you control, or you could transfer it to your new employer. Either way, understanding your options now will ensure that you are prepared for retirement.
Instead, only use cash or only buy within your means. In a perfect world, paying off your total credit card bill every month will help you avoid large credit card debts that may prevent you from achieving financial security.
EVENT NE T WORKING
Ten Steps To Better Networking Showing up unprepared or taking the principles of speed dating at a networking event are two ineffective uses of your time. Instead, do your research beforehand and plan your approach. That will ensure that your networking time is well spent and less intimidating. The key is to know exactly who you wish to meet and where you see mutual synergy. It’s not about casting your net as wide as possible, but rather about how someone can contribute to your business and what you have to offer in return.
Let’s be honest: few people are completely comfortable walking into a crowded room and striking up a conversation with a stranger. Most people are much more reserved; we take our time to choose a drink while fervently scanning the room for a familiar face - anyone we can latch on to.
MAKE THE MOST OF YOUR NETWORKING TIME BY KNOWING: who you want to meet -- what you want to say to them -- the impact you wish to make --
Networking is not about ‘‘working the room’’, although that is still better than not showing up at all. However, such a scattered approach fails to help you achieve genuine connections with other people. It is not only about meeting new people, but it also allows you to network with people you already know. A networking event allows you to nurture existing relationships by allowing you to tap into them more deeply. Regular contact with existing contacts keeps you on their radar when new opportunities arise, and it allows you to ask for help when you need it. When you call in a favour from a contact you have not spoken to in a while, you will gain a reputation as someone who only shows up when they need help.
NETWORKING IS A TWO-WAY STREET 1. Prepare Identify the people you want to speak to ahead of the event.
2. Request Introductions Ask your network to introduce you to specific individuals that might help your business or career.
3. Find Mentors
When you network, consider what you have to offer that someone else needs and what you have to offer in return. By getting to know someone, you will be able to identify their needs and provide solutions to their challenges. Being generous with your time and skills can help you build mutually beneficial relationships.
Connect with individuals who are experienced and cultivate contacts that will help you progress.
4. Know Your Elevator Pitch You should be able to pique someone’s interest by describing who you are and what you do in a few lines.
Project warmth by looking the other person in the eye, and don’t underestimate the importance of a friendly smile and a firm handshake. A good handshake will let the other person know that you are credible and authoritative. A limp handshake, however, will make them think you are insipid or weak.
5. Be Clear Make your offer clear.
Ask questions and show an interest in the other person. By keeping conversation starters at hand, you can find common points of interest. Good conversation starters include asking questions that are relevant to the group or about current affairs.
6. Be Willing To Speak Nobody likes someone who listens to all someone else has to say, but is not willing to divulge anything themselves.
Knowing your audience and the topics that interest them will enable you to better converse with them, but you want to avoid coming across as too intense. Nobody likes the pushy networker who hands out business cards before you have even met. This behaviour may help overcome the awkwardness in the short term but it is viewed negatively by the networking community.
7. Listen Focus on listening instead of talking so that you can easily identify where a relationship might lead.
8. Pay Personal Attention
Instead, muster a smile, shake hands and use one of your prepared topics to start a conversation. Wait for the conversation to end before you offer your business card. Always be sincere and genuine. As you move through the room, you’re bound to recognise other networkers with similar traits.
Listen for any personal comments that might come up in the conversation as it may be helpful in cementing the relationship in future.
9. Stay Relevant
When it is time to extract yourself from the exchange, simply offer your hand and wish the other person well. Avoid lingering or promising to be in contact if you do not plan on contacting them. If you do envisage contacting them, commit to a timeline and be sure that you follow through. You may suggest meeting for coffee or a visit to the office.
Keep in regular contact with your network by sharing information and articles via social media.
10. Build A Large Network
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TECH FREE APP TO TAKE PAIN OUT OF ORGANISING SCHOOL EVENTS Sunday Business Post
“The app is free for parents and schools and we will introduce some premium services later in the year – for example, Komeer Payments, which will allow schools to collect payments using our app. “We are also looking at some specific location-based child alert services and we’re developing a parent-teacher meeting organiser.” Walsh is also chief executive of Sky Business Centres, a lead mentor in Clontarf GAA Club, chairman of an Irish NGO, and chairman of Dublin City Enterprise Board Schools Enterprise Awards. “I’m acutely aware of the pain points in organising events and group communications – getting the message out to large groups of people and getting responses back,” he said. “Komeer came about as a better way for communicating rapidly and also encouraging participation and engagement or, in simple terms, getting people turning up at activities, getting more children attending speech and drama and sports activities like football or camogie. “If an event or activity is cancelled or the school has to close unexpectedly, it’s about getting the message out and getting a response back so you know the parents have got the message.” Komeer was one of 500 global start-ups accepted on the Facebook FbStart Programme in 2016 and was, last month, announced as one of two winners of the Dublin city Innovation Investment Fund programme. “We want Komeer in every school in Ireland and we also want schools abroad,” said Walsh. “We’ve met with more than 200 principals in Ireland and we have exhibited at IPPN conferences here and conferences in Oxford in the UK, where we now have eight schools signed up, and Atlanta in the US.”
Dublin businessman Pat Walsh has launched a new smartphone app that he hopes will replace SMS messaging and printed notes as the go-to method of communication between teachers and parents in Irish schools. Walsh has invested €120,000 in Komeer, a mobile two-way messaging service parents can download and use for free on iPhone, Android, Blackberry and Windows mobiles, using their email address to sign up via Facebook or Google. Schools can also use the Komeer app for free to announce upcoming events and meetings, discuss security issues, or announce cases of head lice or chicken pox. Unlike SMS texting, Komeer alerts are not limited to 160 characters. “They can create an unlimited number of groups – one for sports, one for each year, or class, and so on,” said Walsh, who has spent two-anda-half years developing the app and testing the Beta version with 30 schools before its official release last week. Users reading messages sent from schools via the Komeer app are required to tap their device to confirm receipt. Komeer automatically adds events to parents’ smartphone calendars. Map and location information is another key feature. Responses are summarised for the school on a dashboard, so the principal or administrator can see how many parents have received and responded to their message. “SMS messaging is used by 4,000 schools but its cost is increasing, so currently most schools are paying 5.5 cent per text message or up to €5,000 a year,” said Walsh.
SMART HOME ARRIVES IN IRELAND AS AMAZON LAUNCHES ALEXA AND ECHO The Irish Independent
available in Ireland for €3.99 per month per Amazon Echo device. Amazon Music Unlimited normally costs €9.99 per month for an individual plan that’s accessed from smartphones or other devices. The Echo smart speaker system uses “far-field voice recognition” with an array of seven microphones to hear users from across the room, while “beam-forming” technology combines the signals from the individual microphones to suppress noise, reverberation and competing speech. Amazon is bundling a Philips Hue smart lightbulb with the purchase of its Echo Plus smart speaker to encourage smart home adoption. The Alexa system ‘learns’ from users’ behaviour and habits. The company said that its ‘Alexa Skills Kit’ and ‘Alexa Voice Service’ is now available for local Irish developers to build compatible systems for locally.
The arrival of the smart home in Ireland just took another big step. Amazon has launched its smart voice system, Alexa, in Ireland. The company is now selling its Amazon Echo and Amazon Dot smart speakers directly into the country. Alexa, the voice-controlled artificial intelligence system that powers the smart speakers, will now work for local Irish services such as Ryanair, RTE and local radio stations. The system allows you to ask it questions, phone calls, send messages, play music or get news or weather. It also allows you to set alarms. It works with smart home gadgets such as lighting and heating systems, allowing users to speak commands to control household functions. Amazon has also announced that its rival to Spotify, Amazon Music Unlimited, is now
SETTING BUSINESS GOALS FOR 2018 This is a good time for companies to kick-start their target setting and revolutionise their performance management.
Studies have shown that companies that align the goals of individual employees with that of the organisation experience dramatic performance improvements. However, it can be challenging to set performance maximisation targets without experiencing harmful side-effects. Employees may try to achieve performance targets in ways that are not desirable to the organisation and negative attitudes can cause lack of motivation and a decline in company morale. Companies should be cognisant of data manipulation, which is another key concern in setting performance targets. It all starts with establishing the companyâ€™s mission and vision before bringing management and the employees into the fold. A company may opt to measure company growth by the number of lives that were impacted by their products, rather than the profits and income that was generated. Employees will feel that they are a part of something bigger than just a profit margin. Cynics might question the efficacy of such an altruistic view, but it does help employees and clients alike to form an emotional connection with the organisation. Mid-level managers who are tasked with negotiating reporting-related politics to senior managers may find motivational strategies more cumbersome. One way to handle that, is to figure out what motivates each individual staff member.
Managers are faced with the mammoth task to establish performance targets and measures that provide direction and purpose to individual employees at different levels and in different parts of an organisation. There are four key areas to consider:
OWNERSHIP CULTURE Performance rewards can cultivate an ownership culture within an organisation. When a certain department achieves a performance target, the organisation could invest in technology or tools that will improve work conditions for them.
The financial and non-financial rewards employees will achieve for hitting performance targets should be considered regardless of the selected approach. Likewise, penalties for failing to reach a target are also important.
MONITORING PERFORMANCE Feedforward - information that enables organisations to learn and generate ideas, make plans and implement strategies.
Managers must implement an information flow system with adequate performance monitoring and learning support. To do so, managers must differentiate between and implement:
Ensuring that these systems are in place will support communication regarding targets and performance information.
Feedback - a tool that enables employees to undertake corrective actions.
PERFORMANCE INFORMATION AND EMPLOYEE EVALUATIONS Managers must consider whether it is worthwhile to use a different evaluation style in order to attain positive outcomes at the different organisational levels and in different settings.
The way in which performance information is used is the single most important factor that influences employee behaviour. Managers must consider the behavioural implications of a flexible or rigid performance evaluation. Rigid evaluation styles base evaluation purely on employeesâ€™ ability to meet targets. That means that employees who donâ€™t achieve the targets will be given an unfavourable evaluation, irrespective of other factors, which might be considered in a more flexible approach.
In todayâ€™s competitive business climate, it is more important than ever to align organisational goals with employee decisions. Target setting and performance measures will continue to play a fundamental role in the business world, and managers have complex decisions to make. They must constantly reflect on their approaches and adapt them in order to maintain individual employee and organisational performance.
The flexible approach also uses target information as a performance indicator, but the evaluation is also conscious of other aspects.
HOW TO INSPIRE TRUST IN YOUR STAFF One of the most important aspects in any business, is the relationship between a boss and employees, but this is a topic that is rarely discussed in management schools.
A POORLY-MANAGED TEAM IS EASY TO SPOT: • • • • • •
Individuals refer to their colleagues and the team as a whole as ‘‘they’’, rather than ‘‘we’’. There is poor collaboration and very little cooperation. Communication is below par, and individuals tend to roll eyes and use sarcasm. Stress levels are high, as are absenteeism rates. Employee turnover is high. There is a bad atmosphere in the workplace.
A well-managed team, on the other hand, uses ‘‘we’’ and ‘‘us’’ conversations. They collaborate and cooperate with one another, have genuine conversations, and form real relationships with plenty of laughter. Teams tend to plan on sticking around, the people are happy and the team achieves great results.
The best employers don’t miss the opportunity to cultivate their people. They establish quality relationships in the workplace by cultivating trusting relationships between managers and employees. Trust is the single most important factor that sets apart quality relationships in the workplace.
Becoming a manager is an interesting concept. We start out with the very best of intentions, but when we’re responsible for other people, it can be difficult to create the ideal workplace.
Since we are not taught why relationships with employees matter, we don’t think about the importance of fostering them. Trust is not taught in management school, in college, or even in MBA programmes. Most companies focus on mainstream management, and teaching trust does not feature in their inhouse training programmes. Management training has failed to keep up with the most important element in employeeemployer relationships.
Having worked under a manager, we know and understand the attitudes and behaviours that we value in a person. We know what a manager can do to make us feel happy, valued, respected and generally good. However, putting this knowledge to work when dealing with our employees, is usually much harder.
Most management courses teach employees how to handle the resources at their disposal - from machinery and equipment to facilities and vehicles. We are taught how to manage the people who are responsible for the resources, and how to achieve the required outcomes - service standards, sales budgets, and production targets - using the resources. However, most of us have never had explicit training in achieving these goals by building trust with our employees. That is, after all, the secret to lasting success as a manager.
Over the last three decades, a philosophy has evolved to help bridge the disconnect some of the leading employers in the world face in terms of managing people with the knowledge economy. The aim of management is to engage people in such a way as to bring out the best in them. A manager understands that people are the backbone of their company. Sadly, not all organisations understand this important philosophy. They say all the right things about people being their most important asset, yet they manage them as though they are an afterthought.
WHAT IS TRUST
Positive workplaces thrive on trust, which enables them to make the most of their talent. People who work in emotionally uplifting, safe and secure environments tend to feel empowered, which makes them want to contribute to the well-being of the organisation. As a result, the team becomes more than just the sum of its parts. People who are trusted trust one another. Employees start to look at the team as more than just colleagues or co-workers; they become family. They will use ‘‘us’’ and ‘‘we’’ language, and they will want to belong to something bigger than themselves. A team mindset will encourage employees to think about the wellbeing of the team and the organisation, instead of focussing on themselves and their own interests.
According to the Oxford Dictionary, trust is a firm belief in someone’s ability, truth and reliability.
It is not only managers who benefit from cultivating high-trust relationships with their employees, however. Employees tend to fit in better and feel more at home in organisations where trust is an integral part of the organisational culture. Good workplaces tend to develop great reputations that attract the right talent to apply to job vacancies, which in turn help them fill the organisation with more awesome people. It all starts with understanding the employee values and attitudes that match their organisations best.
Trust is the key to successful relationships between employers and employees. These are the relationships that form a foundation upon which great organisations with a trust culture are built. In the workplace, a manager has the great responsibility of knowing that his or her every action and every word spoken can make or break their employees’ trust.
Research has proven that even in less strong workplaces, managers who achieve strong trust relationships with their employees and create positive working environments for their teams, receive much in return. Managers who own the trust of their employees tend to be able to achieve much more in the workplace.
Amazing workplaces have the leading edge that help them achieve great results: 1. They know what they are looking for in team members. 2. They get to take their pick from a larger pool of potential candidates.
Since their teams are focussed on achieving business objectives, employees are less distracted by issues that are common in environments where trust is lacking. Workplaces that lack trust tend to lack clarity about goals, and as a result the workplaces suffer under the pressures of poor communication and internal politics.
3. They are skilled at finding the perfect candidate for each job. Once the ideal candidate is appointed, he or she feels instantly at home in the new environment, which helps the whole team to achieve their objectives without missing a beat.
DOING BUSINESS IN KINSALE A great place to work and live
Doing Business in Kinsale
‘Doing Business in Kinsale’ Launch 2107 at The Blue Haven Hotel
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Doing Business in Kinsale is a new, glossy 80-page book highlighting why this famous town has built a well-deserved reputation as great place to live and work. The guide features contributions and articles from leading commentators, businesspeople and politicians including high profile economist, Jim Power; Ger O’Mahoney, Chairman of ‘Visit Cork’ Strategic Task Force and PWC partner; Niall MacCarthy, CEO Cork Airport, Ron Immink and Simon Coveney, Deputy leader Fine Gael, ‘We wanted to create a guide to promote Kinsale to a wide yet targeted audience of key investors, influencers, entrepreneurs or expatriates looking for the ideal location to live, relocate or to develop a business. Kinsale offers a great quality of life, a vibrant business community and is only twenty minutes from Cork city, Cork airport and the motorway network.’ Sean Mahon, Managing Director of Star Creative says: ‘As a businessman and family man I always think of Kinsale as a great place to be based for a good work-life balance. It has a vibrant and eclectic business community, access to good education options, first class shops, hotels and restaurants and great connectivity. Have I sold it to you yet?’ The guide, is available in hard copy and as a digital edition at www.doingbusinessinkinsale.com and is already promoted via social media, email and a targeted mailout of the book to key individuals in business and government in Ireland, the UK and overseas. There has been a huge positive engagement for the project.
Cormac Fitzgerald FCPA, Sean Mahon (MD of the Southern Star & Star Creative) & Tánaiste Simon Coveney (Minister for Foreign Affairs and Trade wtih resposibility for Brexit and Deputy Leader of Fine Gael
Millennials IN THE WORKPLACE Don’t take their rejection too seriously, because they might return soon enough
Millennials have been stereotyped as the most demanding and ambitious generation to have entered the Irish workforce. This is the generation that will be leading organisations by 2025. Individuals aged between 18 and 36, millennials, have become the most influential segment of today’s workforce and population.
Some of the reasons cited for job satisfaction among millennials, include work/life balance, flexible working options, opportunities for development and progression, recognition and support from managers, relationships with colleagues, transparency and company culture. However, millennials don’t always leave their jobs because they are unhappy. Instead, they make a move in order to gain new experiences that may not be offered by their current employers. These are some of the reasons why they leave:
Experts recommend that instead of stereotyping them, we should, rather, transform workplaces in order to reflect their attitudes, needs and values. According to a new report titled The Workplace in 2025, millennials value flexible workplaces, salaries and career progression as key factors that influence job satisfaction. The online survey was compiled using the input of well over 3,400 Irish professionals.
• They want to change to a different sector • They want to work in a bigger or smaller company • They want to acquire new skills that are not available within their current roles • They want to change work environments to more formal or casual, or something similar • They want to take a career break to travel • They are relocating to a different city or country.
Being raised in a world where social media and technology is ubiquitous, these individuals have a unique set of career and job expectations. They are therefore no longer motivated by the same factors that inspired older generations. A few years ago, we were motivated by the prospect of a life-long job. However, millennials in today’s workplace value a good work-life balance, flexibility and opportunity.
The survey suggests that 25% of millennials would gladly return to their previous employer after some time away, especially those who left for personal reasons, to travel, or to further their careers. These workers don’t leave because of negative reasons, but are known as boomerang employees. They are familiar with a company’s values and culture and typically have established employee-employer relationships. They love to gain new connections and experience, which will benefit the organisations to which they return.
Millennials are fast starting to dominate the workforce, and they bring with them new perceptions of office life. Longheld management practices within the workplace are being transformed, and research shows that by 2025, the workplace will be much different to what we are seeing today. Millennials don’t place stock in the practices and values that mattered in previous generations. Instead, they value collaboration, flexibility, mobility, equality and transparency.
Due to their propensity to return to former employers, it is important to negotiate the exit process carefully. Boomerang employees tend to achieve high levels of productivity quicker than first-time employees, which makes them the ideal workers. As such, some organisations have come to expect this as the norm. Provided the exit process is handled correctly, it creates the perfect foundation for easily re-hiring the boomerang employee in the future. Some organisations have started creating alumni networks, which enable them to actively design hiring strategies that target former employees.
A company’s future recruiting and talent retention will depend on its ability to embrace the shifts that are taking place at the hands of a millennial workforce. Companies who wish to stay current and remain competitive must adapt to the changes. Seventy-five percent of millennials surveyed experienced high levels of job satisfaction. In contrast, a third were unhappy, which is significantly more than in previous generations.
MOST IRISH BUSINESSES USING SOCIAL MEDIA BUT ONLINE SALES STILL LOW
with 23 per cent using YouTube. This compares with usage rates of 30 per cent and 21 per cent respectively in 2015. Irish businesses are also ahead of the curve in using customer relationship management (CRM) software, with 34 per cent of companies saying they availed of it to capture, store and make information available for other functions. This compares to an EU average of 33 per cent. Enterprise Resource Planning (ERP) was used by 29 per cent of businesses, the figures show. Over 12 per cent of Irish enterprises reported that they shared information electronically using Supply Chain Management (SCM) in 2017. The most popular method was via websites or web portals. Unsurprisingly, large enterprises led the way in terms of conducting sales electronically. However, almost all businesses said they made more online purchases than sales online.
Almost two-thirds of Irish companies use social media to promote their businesses and communicate with customers, the second highest number in Europe, according to new figures from the Central Statistics Office (CSO). In 2017, 69 per cent of Irish enterprises employing 10 or more people were using platforms such as Facebook and Twitter, compared with an EU average of 47 per cent. The figures also reveals that the use of social media by Irish businesses rose from 64 per cent in 2015 and 67 per cent a year later. Facebook was by far the most popular social media platform used by Irish businesses to connect with customers, with 67 per cent of companies saying they used it, up from 65 per cent in 2016 and from 62 per cent in 2015. In addition, 32 per cent of Irish firms said they used Twitter,
The Irish Times
MORE THAN 19,000 JOBS CREATED BY ENTERPRISE IRELAND COMPANIES IN 2017
a record high. There was a net jobs increase of 10,309, taking account of job losses. Job creation figures are up on 2016. Two thirds of the 19,332 new jobs were outside of Dublin. The agency also announced a Market Discovery Fund to support firms to diversify into new markets in the context of Brexit. There are three levels of funding available: up to €35,000, up to €75,000 and up to €150,000.
More than 19,000 jobs were created in Enterprise Irelandbacked companies last year. The agency said 209,338 people are now employed in companies it supports -
56% OF IRISH COMPANIES HIRE RETURNING IRISH PROFESSIONALS
surveyed cited the cost of buying residential property as a major issue in recruiting staff in 2017, up from 27 per cent in 2016. Seventy per cent of employers increased headcount in 2017, the majority by between 10 and 20 per cent. Thirtyone per cent of employers surveyed said ICT roles were the most difficult to fill. For a growing proportion of ICT firms, the report found that more than a quarter of their staff were coming from outside the EU. “Eighty-five per cent of employers surveyed plan to take on new staff in 2018 with salaries in IT and finance pulling far ahead of other sectors,” said Donal O’Brien, managing director, Abrivia Recruitment. “In line with the general trend of staff shortages in key areas, 64 per cent of employers have employed a non-Irish applicant based outside Ireland in the past 12 months, up from 58 per cent in the previous survey.”
Irish professionals working overseas are opting to return home in greater numbers, with 56 per cent of the companies surveyed in a new report having hired returning Irish nationals in 2017, up from 47 per cent the previous year. The trend was strongest in the finance and banking sector at 71 per cent, according to the 2018 Salary, Employment and Economic Trends Survey compiled by Abrivia Recruitment in partnership with Trinity Business School. Some 7,400 companies and 45,000 employees were questioned for the report, which found that the shortage of rental accommodation continues to bite. Forty-seven per cent of employers surveyed in the report said it was impacting on their ability to hire staff, up from 40 per cent in the previous year. Thirty-seven per cent of the companies
The Sunday Business Post
ECONOMY NOW IN STRONG POST-RECOVERY PHASE - IBEC
IP and aircraft leasing activities) of almost €1 billion per month. ‘‘In addition, figures show that Irish households are now in a positive net ﬁnancial position (deposits outweigh loans outstanding) for the ﬁrst time since the late 1990s. As a result, the net wealth position of Irish households in nominal terms has never been better whilst high Government debt is falling rapidly toward European norms,’’ Mr Brady said. But he said the major question facing the economy over the coming years will continue to be the ability of the economy to meet the needs of a growing population in a sustainable manner. He said that major challenges are already clear in the housing sector. ‘‘Our estimates today show that to meet Rebuilding Ireland’s target of 26,000 house completions along with other construction needs by 2020 there will need to be in the region of 50,000 additional construction workers,’’ he stated. Meeting 40,000 housing units a year would increase this to almost 80,000 workers, he added. ‘‘Delivering on the promise of growth with stretched capacity and a tight labour market, whilst also maintaining competitiveness, will be a key challenge ahead for both business and the Government,’’ Mr Brady stated.
The Irish economy has moved past its recovery phase and has enough strength and momentum to shrug off the impact of Brexit in 2018, according to an upbeat forecast from employers representative group IBEC In its latest economic outlook, IBEC said the current phase of growth is more sustainable than the Celtic Tiger era as it is based on business investment rather than being fuelled by excessive borrowing. IBEC’s latest outlook forecasts growth of 4.2% for this year following expected growth of almost 6% in 2017. ‘‘All indicators are now pointing to strong and sustainable growth in Ireland’s economy in 2017 and 2018 underpinned by business investment and strong consumer spending,’’ the employers body stated. It said that Irish households are clearly benefiting with real disposable incomes growing at over four times the Euro zone average and per-capita income in working households now likely to have passed out its pre-crisis peak. IBEC’s Head of Tax and Fiscal Policy Gerard Brady said this current phase of the Irish economy is more sustainable than the ‘‘boom’’ period as it is underpinned by business investment in plant, machinery and equipment (excluding
ISME: IRISH BUSINESSES UNPREPARED FOR NEW DATA PROTECTION REGULATIONS
ҊҊ ҊҊ ҊҊ
Irish Small and Medium Enterprises (ISME) has warned Irish companies to implement the changes to comply with a new data regulations. The General Data Protection Regulation (GDPR) will come into force May 28th of this year, replacing the existing protection frameworks under the EU data protection directive. A new General Data Protection Regulations survey by ISME gives a breakdown of GDPR compliance among SMEs and the actions taken to date on GDPR compliance. It found that: ҊҊ 83% of respondents are aware of GDPR ҊҊ Only 7% of businesses have completed their GDPR plan ҊҊ 60% of respondents use and collect Personal Data. ҊҊ 30% are unsure if what they hold is considered Personal Data ҊҊ Only 38% could name any of the changes that GDPR will bring
30% of business have identified the steps/actions needed for their business. 70% have not 76% of businesses are concerned about GDPR 32% of businesses are planning to use an outside resource to help with their GDPR action plan 67% of business would like to see training offered on GDPR 41% of business have a staff member who is responsible for overseeing compliance with data protection and preparing for the GDPR.
ISME CEO Neil McDonnell said: ‘‘Today’s results paint an interesting picture of GDPR compliance.’’ ‘‘We received a very healthy response to this survey, which tells us businesses are curious about it. One of the main findings is that businesses are aware of GDPR, but know very little about the intricacies of compliance.’’ ‘‘The impact of non-compliance of GDPR on a business could be serious, as there is a serious fines regime in place to discourage it.’’ ‘‘Businesses must take these new measures seriously’’. The Irish Examiner
Irish tax authorities were in effect restricting the ability of foreign car hire companies to provide services in the Irish market and discriminating in favour of domestic providers. The court also found the tax obligation was not proportionate to its objective - to compensate for the external and environmental effects of vehicle use. Since the duration of use for leased vehicles from a company in another member state is limited and known in advance, the court held that a less restrictive system could be used. This might consist of a registration tax proportionate to that duration. Ireland had introduced a system whereby excess tax could be refunded following an inspection of the vehicle. However, the court also ruled that by failing to refund the interest and by deducting €500 for “administration” from the refund, Ireland had failed to fulfil its obligations under EU law. While Ireland had amended its legislation on this issue at the beginning of 2016, the commission said it had not done so within the prescribed timeframe ending in April of the previous year.
VRT ON SHORT-STAY CARS INCOMPATIBLE WITH EU LAW, SAYS COURT Ireland has been found guilty of failing to comply with European law over the application of tax to cars imported for rental purposes. The European Court of Justice (ECJ) decision relates to those cars which may only be imported to Ireland for limited amounts of time. Irish law requires importers to pay the entire tax for permanent registration, regardless of the intended and actual duration of their use in the State. This approach includes cars that are hired or leased from abroad for predetermined, limited periods of time. Ireland does not face any financial sanction following the court’s ruling, although it will bear legal costs. The Luxembourg-based court ruled recently in favour of the European Commission, which had complained that
POOR BOX USED OVER 1,300 TIMES SINCE 2015
It was widely felt the decline in 2015 heralded the beginning of the end for the poor box. Legislation to scrap the poor box is in the works, but Mr Flanagan has yet to outline a clear timescale for its implementation. He said the Criminal Justice (Community Sanctions) Bill is “currently being drafted by the Office of the Parliamentary Counsel”. Mr Flanagan commented that the legislation will abolish the poor box and replace it with ‘a statutory reparation fund to provide for a fair, equitable and transparent system of reparation that will apply only to minor offences dealt with by the district court.”
The poor box continues to be widely used in the Irish courts, according to new figures showing it has been used over 1,300 times in three years. Figures published by Justice Minister Charlie Flanagan show the poor box was used 843 times in 2015, 258 times in 2016, and 223 times in the first nine months of this year. The figures come months after the Courts Service of Ireland revealed that over €1.5 million was paid into the poor box in 2016, partly reversing the stark 40% decline in 2015.
MINISTER FOR CHILDREN SIGNS CHANGES TO ADOPTION LAW
court or the Adoption Authority, as part of the process. Minister Zappone in signing the Commencement order for the the Adoption (Amendment) Act 2017 stated what a hugely significant event adoption is in the life of the child and as Minister for Children and Youth Affairs she was conscious of “providing an adoption process that is fully inclusive of everyone involved and where children’s best interests are always at the heart of decisions involving them”
Minister for Children Katherine Zappone has signed into law a number of changes to the adoption law. Some of the most wideranging include civil partners and co-habiting couples being able to jointly adopt a child for the first time. Other changes allow an older child to give their views on being adopted to a
VAT SerViceS We can offer our services covering VAT prepared internally by our experienced staff or as part of our external client review. We have a wide range of VAT experience.
ADDING VALUE TO YOUR BUSINESS
ADDING VALUE TO YOUR BUSINESS
rcT & SUBcONTrAcTOrS As with VAT & PAYE a simple mistake can lead to significant liabilities. We can cover all areas for rcT from principal contractors and subcontractors.
ADDING VALUE TO YOUR BUSINESS
No. 9 Pearse Street, Kinsale, Co. Cork, Ireland, Tel: 021 4774500 www.fitzgeraldandpartners.com
PrOFeSSiONAL SerViceS WiTHHOLDiNG TAX We can submit, manage and maintain withholding tax to ensure that the client is fully aware of the amount that is held on account with revenue and we can also arrange for transfers against VAT, cT, rcT, and PAYe liabilities as it is required.
ADDING VALUE TO YOUR BUSINESS
BUSINESS CENTRE Outsourcing your accounts function
LiceNce AND OTHer APPLicATiONS We can take care of most applications including Bar Licence, Wine Licence, Tax Clearance Certificates, Central Statistics Office Returns, etc.
ADDING VALUE TO YOUR BUSINESS
cASHFLOW / BUSiNeSS FOrecASTS We can provide a service whereby we set annual budgets for turnover, gross profit margins, wages % and overhead cost control. This allows the client to have an estimate of where they stand from a profitability point of view before the month end accounts are produced. We can send KPi’s to our clients on a weekly basis if required.
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Professional Advisors with a focus on entrepreneurs
“We regularly update our clients with seminars, networking events and client newsletters so you are kept posted on business related topics relevant to your business“
OUTSOUrce FiNANciAL cONTrOLLer SerVice ADDING VALUE TO YOUR BUSINESS Many businesses do not have a requirement for a full-time internal financial controller. Our outsourced financial controller service gives you access to highly qualified individuals who can No. 9 Pearse Street, Kinsale, Co. Cork, Ireland, provide you with the key monthly or quarterly reporting that you Tel: 021 4774500 www.fitzgeraldandpartners.com require, without the burden of having to take on an employee. Perhaps your business is in the early stages of its lifecycle where the cost of an internal financial controller is prohibitive. Perhaps your company is in a growth phase where your financial reporting requirement is growing. in both of these cases, key financial information is critical. We can do this for you. We make the information meaningful – we will not simply present you with reports, we will work with you to ensure you receive the information that you need and will discuss the implications of same with you. ADDING VALUE TO YOUR BUSINESS
ADDING VALUE TO YOUR BUSINESS
Business Advisory Business Advisory
Outsourcing your accounts function
www.fitzgeraldandpartners.com Professional Advisors with a focus on entrepreneurs
“We regularly update our clients with seminars, networking Contact us kept posted on business events and client newsletters so you are topics relevant to free your business“ for a related quotation or for a consultation
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Other Services provided by Fitzgerald & Partners include: Tax Planning corporate Advisory 17-Nov-17 Management Accounting Business Development Succession Planning Business Transfers Business intelligence information Technology Audit Contact us Tax for a quotation orAdvisory for a free consultation
No. 9 Pearse Street, Kinsale, Co. Cork, Ireland, Tel:www.fitzgeraldandpartners.com 021 4774500 www.fitzgeraldandpartners.com
+353 21 4774500
Outsourcing your accounts function
Other Services provided by Fitzgerald & Partners include: Tax Planning
Pearse Street, Kinsale, Co Cork
A4 to DL Business Centre brochure jan 2017.indd 1
RANGE OF SERVICES AUDIT
• Audit and Accounting •• Corporate Tax •• Personal Taxation •• Companies Act Compliance •• Comanies Registration Office Returns •• Financial Reprots •• Internal Audits •• Report on Business Procedures, Systems and Controls
•• Payroll Process •• Calculations Of All Aspects Of PAYE, •• •• •• ••
Employer And Employee PRSI Submitting Revenue Forms P30, P35, P45, P60 All Appropriate Payroll Reports Itemised Security Payslips Electronic Payment of Salaries To Employees Payment Accounts
CONSULTANCY, BUSINESS ADVISORY AND ENTREPRENEURSHIP
•• Preparation of Monthly
•• Corporate Restructuring and Debt
•• •• •• •• ••
•• •• ••
Management Accounts Advice on Margins and Analysis of Business Performance and KPIs Accounts Payable and Credit Control Facilities Full Bookkeeping Services Including All Aspects of Payroll. PAYE & VAT Returns Queries in Relation to Payroll, Employment Legislation, Employment Controls, VAT, Tax Registration, Accounting Software and Packages Set Up of Manual and Computerised Systems
CORPORATE FINANCE •• Debt and Equity Finance •• Business Restructuring •• Business Performance Improvement
Advisory Capital Restructurrng Strategic Reviews Corporate Insolvency Valuations and Businss Modelling Transaction Tax and Transaction Support Capital Debt Funding Succession
•• Full Range Of Tax Services •• Meeting Filing Dates For Returns
CORPORATE SECRETARIAL SERVICES
•• Assist Clients In Filing Statutory Obligations
•• Company Incorporations •• Preparation of Annual Returns •• Processing Changes in Structure and Payroll Services
FAMILY AND OWNER MANAGED BUSINESS CONSULTING
•• Developed The Family
And Owner Managed Business Programme •• To Help Assist Owners And Their Families To Overcome Issues That •• May Arise
HOSPITALITY BUSINESS UNIT
•• Critically Appraise An ••
and Payments •• Optimise Tax Efficient Solutions •• Dealing With Expatriates
CREDIT UNION: CONSULTING AND COMPLIANCE
9 Pearse Street,
Kinsale Co. Cork, Ireland
Investment Devise The Best Overall Proposition To A New Investment Advice On Raising Finance Obtain The Best Deal For You Bring Essential Credibility To Your Proposition Due Diliegence
Tel: 021 477 4500 Fax: 021 477 7374
Regulated to carry out any audit work and authorised to carry on investment business by the Institute of Certified Public Accountants in Ireland