As we approach the final months of 2023, three Chartered Accountants take a moment to contemplate the hurdles Ireland has surmounted and share their aspirations for the remainder of the year
Sinéad Nolan
Financial Accountant
AXA Insurance
The economy is fine on paper (GDP and domestically); however, housing is a major issue, in both affordability and availability. The cost-of-living crisis is only exacerbating a problem that was already there for young professionals starting off their careers.
Paying rent is a continuous challenge, as is looking for an affordable house to purchase. The interest rates keep rising, and house prices don’t seem to be reducing.
Many in the country felt the challenge of paying bills in the wintertime. On top of that, there has been a lot of uncertainty with the war in Ukraine.
On the plus side, there has recently been slight moderation in the price of energy and in inflation, and the pleasant weather in June was a bonus! (Less pleasant in July, admittedly.)
Also, the unemployment rate in the Republic of Ireland fell to a record low of 3.8 percent in May.
To help, my employer has hosted many financial wellness webinars, which, given the current economic crisis, have been great.
We also received a well-being day off, not to mention personal interaction is happening in the office again – we are attending social events, which is brilliant.
As for the rest of the year, I hope the housing crisis settles, and there is more support given to first-time house buyers from the Government.
I joined the Young Professionals Committee in July after attending the wonderful Pride BBQ in June. I am looking forward to organising and hosting events, and connecting with other members of the Institute. The Young Professionals Committee is a great networking platform, so I am very excited to get stuck in with it.
Jim Stafford
Consultant
Friel Stafford
I work every day at the coalface, advising companies and individuals who are dealing with financial challenges, and thus I appreciate the issues facing the economy.
While there is an economic brew of uncertainty caused by inflation, geopolitical issues, etc., the biggest impact we have seen this year has been the dramatic increase in interest rates, which has shaken some people to the core.
We have observed a noticeable increase in Members Voluntary Liquidations from businesspeople who are deciding to ‘cash in their chips’ now rather than face future uncertainty.
One of the positives that I have always enjoyed when working with people under financial pressure is recognising the levels of resilience people have. On the ‘resilience spectrum’, I am delighted to see some clients who bounce back stronger than ever.
The highlight for me personally this year was the sale of Friel Stafford to Ifac, which will enable us to provide restructuring services such as the Small Company Administrative Rescue Process (SCARP) across Ifac’s 30+ offices.
The association with Ifac has moved us into the top ten accountancy firms in Ireland, which has opened the doors to certain types of work, making it easier for us to attract and retain talent.
A big development during the year was the growth of artificial intelligence (AI). While there is great potential for generative AI to change the workplace, there is also huge scope for more sophisticated fraud.
Looking to the year ahead, a big challenge for some businesses will be the ending of the Revenue warehousing scheme, which was a valuable lifeline for many.
We expect to see an increased number of SCARPs next year.
Another big challenge for some firms will be the Companies Registration Office and the Corporate Enforcement Authority increasing their enforcement activity on companies that are struck off.
Gordon Naughton
Chief Executive Officer
Tactive
January represented a strange and uncertain time for the Irish and global economy. Many initiatives were placed on hiatus due to significant inflationary, economic and geopolitical concerns.
In January, it was startling to see how quickly the mood had shifted from November and December.
Since then, the business community and consumers have learned to live with these concerns and are in a positive state of mind.
Currently, the Irish economy is showing tremendous resilience, with the overall tax intake and consumer spending being unexpectedly high. It seems the country is forging ahead.
However, if the past three years are a barometer for future challenges, predicted and day-to-day issues tend to be easy to deal with. It’s the unpredicted challenges that can pose the most difficulty.
My key lesson from this period is that businesses need to be agile, efficient and have contingency plans for the three main ways an economy can move – up, down or steady on.
Luckily, I have great clients, a good support structure and network that has brought me through any uncertainty. I am so lucky to work from home and spend time with my wonderful family.
Continuous learning is a facet of my life, as I simply like reading and expanding my knowledge. This year I obtained a black belt in Lean, which has helped me professionally and personally.
As for the rest of 2023, I hope to continue to work with outstanding clients.
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