Confidence through a systematic approach to accountancy

Advertisements use a multitude of key buzz words to attract customers one of the main purposes of which is to give the potential client confidence in the service or product they intend to purchase.

How do we as accountants in reality instil such confidence as distinct from just putting it down in an advertisement because it’s good for marketing?

Accountants are there to prepare your tax returns and tell you whether you made a profit or a loss and therefore advice if your business is financially viable or not and what changes you need to make it profitable. Also on a psychological level he/she is there to give you a certain peace of mind that you are compliant with your taxation responsibilities and numerous other statutory requirements such as to the Central Statistics Office and the Companies Registration Office.

In order to provide my clients with this level of confidence I find the underlying principal is the systematic approach we take in the practice to each client’s files. I know every client on a personal level and analysis what they need done and how to achieve it. After this every figure we prepare is fully backed up with detailed analysis prepared on a systematic basis. By doing this I can be confident in the figures we produce and so is the client. Our sets of accounts can be analysed the way you peel an onion. The outer layer is the overall figure but you can peel away to reveal the figures and breakdowns behind each number.

Over the last year I have had five revenue audits and in each one the auditors went away without a single euro more than the figures I had submitted to them. This is because each figure is simply explained and then behind each one there is a detailed analysis so that when the Revenue Officers come down I can prove my figures are correct and have a strong basis for countering any arguments they may come up with.

You should expect this from any professional you deal with and although it seems obvious it isn’t always in fact what people get.

(C) Frank McGivney BA(1st class) ACMA CGMA, 0469293891

The Shadow Economy

The Shadow Economy

The shadow economy costs every tax payer money through higher taxation. If everyone declared the income they made then the tax take would increase significantly and the tax burden on an individual basis would fall so we would all pay less.But of greater concern is the effect people,operating with out paying taxes, have on legtimate business. If you are a carpenter qouting for a job and you competion is some guy who pays no tax and no insurance then you just... simply cannot compete. The home renovation scheme has helped alleviate this to some extent in the building industry but it still is a prevalent hinderance to fair trade through out all sectors of the economy.
.
1. What is the shadow economy?
In general, shadow economy activity is activity in respect of which businesses (including professions) and individuals engage in inappropriate practices with the aim of not complying with their legal obligations relating to matters such as taxes & duties, PRSI, licenses and employment. Shadow economy activity includes -
not declaring, or under-declaring, a source of income (for example, not declaring or under-declaring 'cash jobs') so as to avoid tax and other liabilities;
employers paying employees in cash under an 'off the books' arrangement so as to evade tax and PRSI liabilities;
'working and signing' - working or running a business whilst at the same time claiming falsely job-seekers benefit from the Department of Social Protection;
non-operation of the VAT system;
tobacco smuggling including the sale of illegal tobacco products;
oil laundering including the sale of washed diesel.
Most of the shadow economy activity takes place within that which is referred to as the ‘cash economy’ (i.e. the payment for goods and services by way of cash).
2. What are the main effects of shadow economy activity?
Shadow economy activity –
reduces tax, duty and other revenues owing to the State;
creates an un-level business playing field that has a negative impact on legitimate businesses as regards competitiveness, sustainability and long term job creation.
3. Reporting shadow economy activity
You can report (or report via your representative body) to Revenue details of shadow economy activity by using our Online Reporting Form. Alternatively, a report may be made by way of a telephone call to your local Revenue office.
Frank McGivney & Co. Ltd Tel 0469293891 email fmcgivney@live.com