With a country that has a minor population of 4.7 million people across its republic borders, it comes as a shock to hear that this particular nation has touched a record-setting GDP total of USD 340 Billion in the previous year. Thus, there is no doubt that the Irish business environment is a fast-paced network of different companies that are working in coalition with one another rather than to promote aggressive competition. This particular corporate mob mentality has allowed favourable growth of new businesses in Ireland.
Coincidentally, many outsourcing entities such as independent distributors and trading companies sought out to exploit the opportunities and found themselves in partnership and joint ventures with many companies. This led to building a healthy business ecosystem for small and large business entities in the Republic of Ireland. Though the nation has vast business resources such as land, labour, network and supportive policies, the one essential service that was in bare minimum availability was that of accounting and book-keeping.
A Growing Demand by the Government
The modern-day business environment has become a plethora of industries culminating with a multitude of companies of which many sustain and many seize to exist after their pilot phase post incorporation. The versatile activities that businesses pursue the demand for different types of financial documentation in the form of Accounting and Book-keeping. Though most companies claim to be honest about their activities; that does not turn out to be the same as requested when news leaks about financial scams and fraudulent accounting activities. In which case it is fair to say that the government is not an entity born just yesterday the reason for establishing stricter accounting regulations is so that the government can avoid fraudulent activities and prevent economic or financial crisis' from taking place.
Thus, the government of Ireland is encouraging the populous of companies that are building the economy to regularly ensure that the accounting obligations are met and supporting documents are submitted to the government. The different administrative bodies such as the Revenue Commissioners Office and the Company Registrations Office regularly demand the accounts of the companies and assess these books of accounts for multiple taxation and investigative purposes. Though the market is very flexible, the government has imposed stricter taxation and documentation policies to ensure that companies regularly submit their accounting records so that the government can have a record of the company’s financial status.
Revenue Commissioners Office
The Irish Taxation Authority which is called the Revenue Commissioners Office is the prime government body that regulates customs, excise, tariffs and taxation policies that blanket the backend of the Irish economy across the 26 counties of the Republic of Ireland. The Revenues office imposes certain taxes based on the company's growth rates such as an increase in annual turnover surpassing a certain preplaced threshold. Based on these obligations, the company must submit records and pay the mandatory taxes in the buffer time (which in most cases spans over 30 days) provided to the company by the office. The different obligations that require company books of accounts to be submitted to the office are –
- Comprehensive books of accounts – Balance sheets, cash flow statements and so on
- Pay As You Earn (PAYE) system
- Value Added Tax (VAT) system
- Relevant Contracts Tax system for sole traders and companies
- Companies (such as offshore companies) that are exempt from paying tax for specific reasons must present a tax exemption letter to the office
These documents must be maintained for a period of 6 years as per government guidelines.
Company Registrations Office (CRO)
Any company that wishes to set up business in Ireland must look towards primarily approaching the Company Registrations Office (CRO) for operating in the Irish Market. The CRO is not only responsible for the smooth functioning of companies in the market, but it also keeps track of the performance status of different companies. Based on the yearly economic fluctuations, the CRO becomes responsible for registering new taxable goods and services based on the different thresholds that these companies cross through their earnings. The CRO is also the deciding entity for exempting certain companies from taxable obligations.
The key function post incorporation for any company is to register for paying taxes. Different taxes promote different registration processes, and these must be handled through a company secretary that will be a communicating intermediary between the company and the government. The companies must register for becoming taxable entities with the CRO based on the services they provide. The CRO also announces a list of taxable goods and services with different tariffs of which agricultural and fishing based goods and services are in most cases exempted from taxation.
A Potential Market for Accounting Services
Flaunting a diverse portfolio of companies in its economic layout, Ireland is undoubtedly a market for new opportunities and the growing demand for accounting services is a standing proof for that statement. Many companies look towards their key operations for earning profits; hence, leaving a loophole in administrative activities such as auditing, accounting and secretarial services that connect companies directly with the government. Consequently, many companies have taken to the challenge and have dared to venture into this untapped field. The flourishing of these companies seems to be a cry in celebration of their predicted success inciting the entry for more firms that provide services of – accounting, bookkeeping, and company secretarial services and so on.
The Irish business market is a land of new opportunities, and amidst the jolly ride, no innovative business venture would want to be hurdled by administrative activities that would reduce its focus on key production areas. In which case, let us take the blow for you, Contact us and give us the opportunity to assist you in the varied services of finance intensive tasks such as accounting and bookkeeping, administration based tasks such as company secretarial services and also to help in the company registration in Ireland.