Data analytics is an important part of the finance function, but organisations are still struggling to use data to their best advantage. Eoin O’Reilly says finance leaders need to change their mindset to move this agenda forward. There is widespread acceptance that data and analytics are playing a major role in transforming the finance function across all industry sectors. However, many finance functions struggle to make meaningful progress with this agenda. To truly unlock the power of data analytics, finance leaders must shift their mindset. Here are five ways to do just that. 1. Think objectives, not just tools and systems Many people think that analytics is about selecting the right tools and platforms. While there are lots of good tools out there, finance leaders need to set the objectives and tone for the data and analytics programme by asking a few questions: Do you want to save costs by streamlining reporting and facilitating self-service? Do you want to deliver deeper insights on reasons for variances and movements by drilling deeper into data? Do you want to explore the dynamics of profitability for a product/market/customer and potentially help optimise? 2. Think blending talent, not just new talent The data and analytics opportunity in finance won’t be unlocked by a team of data scientists on their own. Every data project needs a combination of domain expertise, data understanding, data engineering, and analysis skills. As well as bringing new talent into the finance function, you need to upskill your current teams to make them ‘data aware’. Think about a spectrum of data skills from data consumption to data science – depending on your objectives, different people will be needed from various points on this spectrum. 3. Think building trust in the data, not just visually appealing dashboards Dashboards and visualisations are unquestionably important tools in driving business intelligence adoption and telling stories with data. However, they are the easy bit. The key to success in finance is to build a layer of trusted data that can be used for reporting and ad hoc analytics. Many organisations create finance data ‘lakes’ or ‘marts’ where they combine data used for financial reporting. Although creating a trusted data platform can take considerable effort and will inevitably identify data issues downstream, the rewards for getting this right are significant. 4. Think about a portfolio of use cases, not one big project For those in the early stage of their analytics journey, there can be a perception that analytics is one big project. In reality, analytics programmes are made up of a portfolio of different use case projects that will move at different speeds and deliver different levels of value. Start small with a use case that will generate good results, and then treat your analytics programme as a balanced portfolio. Finance is also uniquely placed to measure and certify the value delivered by analytics projects. 5.  Think about taking a lead in sustainability, not just being a scorekeeper Finance leaders have a unique opportunity ahead of them. As global markets focus on long-term value, including non-financial measures, organisations must demonstrate their progress on sustainability to investors. For so long, the finance function has shown leadership in the setting, monitoring, and reporting of financial metrics – is there anyone better placed to do the same for the sustainability agenda and non-financial metrics in the coming years? Eoin O’Reilly is Assurance Partner and Head of Data Analytics at EY.

The US is looking to level the playing field regarding corporation tax worldwide with a higher minimum tax rate than is currently enjoyed by US multinationals in Ireland. Anthony O’Halloran explores what that could mean for Ireland Inc. The recently published Made in America Tax Plan proposes several US corporate tax measures to address perceived profit shifting and offshoring incentives. There is a view that the US needs to level the playing field between domestic and foreign corporations. Proposed measures include: raising the corporate income tax rate to 28%; strengthening the global minimum tax rate for US multinational corporations; encouraging international adoption of robust minimum taxes; enacting a 15% minimum tax on the book income of large companies that report high profits but have little taxable income; replacing incentives that are viewed as rewarding excess profits from intangible assets with more generous incentives for new research and development; replacing fossil fuel subsidies with incentives for clean energy production; and ramping up enforcement to address corporate tax avoidance. In their current form, the US tax proposals are certainly far from a done deal and will need to navigate both the Senate and the House of Representatives. In the Senate, the Democrats have 50 of the 100 seats, with Vice President Harris casting the tie-breaking vote when needed. In the house, they have a majority of ten members. With midterm elections coming up in 2022, the politics of gaining the necessary political support to broker a deal may prove considerably challenging. The implications for US multinationals in Ireland The proposed changes to the US anti-deferral rules under Global Intangible Low Taxed Income (GILTI) tax and the proposed repeal of the Foreign Derived Intangible Income (FDII) regime are likely to have the most significant impact for US multinationals with operations in Ireland. President Biden’s proposed changes to the existing GILTI tax rules and the proposal to move to a minimum effective tax rate on a country-by-country approach rather than a global blended rate more closely aligns with the Organisation for Economic Co-operation and Development (OECD) rules for minimum tax currently being designed under Pillar Two. The Tax Plan proposes an increase in the effective tax rate on GILTI income earned by US multinationals from 10.5% to 21% through to 2025 and the elimination of the 10% return on foreign tangible property. Also, GILTI would move to a country-by-country basis. This would prevent taxpayers from offsetting amounts between higher tax jurisdictions to shelter incremental taxes that may be due under the GILTI regime on US multinational subsidiaries in Ireland. During recent OECD discussions, President Biden’s Treasury Secretary, Janet Yellen, repeated that the US favoured a global minimum rate agreed to by all countries at the OECD level. While it appears that the US will push for a minimum of 21%, there will likely be significant discussion on the minimum rate before anything is finalised. GILTI and foreign direct investment The outcome of the final US GILTI and global minimum tax rates will ultimately dictate Ireland’s ability to use tax as a tool to attract new foreign direct investment. The critical role Irish operations play in multinational groups operations cannot be understated and has been further evidenced by the growth in export figures during the COVID-19 pandemic. This is undoubtedly a reason to remain optimistic about the future of foreign direct investment. However, significant changes to the international tax framework are in Ireland Inc.’s line of sight. Therefore, it is critically important to continue delivering talent, research and development, critical infrastructure, and business supports to ensure that Ireland remains a location of choice for foreign direct investment. Anthony O’Halloran is Director of Corporate & International Tax at Deloitte.

Accountants are well-known for their analytical and problem-solving abilities, but in order to excel as advisors, they must also utilise their emotional intelligence skills. Ben Rawal explains how. Emotional intelligence (EI) is the ability to recognise and manage our response to emotions – both our own emotions and the emotions of others. Our level of EI ultimately determines critical aspects of our personal and professional lives, including coping with stress and building effective relationships. As a former accountant, I now advise other accountants and finance professionals on improving their EI levels. This task has proved particularly useful during the pressure of the past 12 months. Remote working COVID-19 has changed how we work and has tested different aspects of our own unique EI. Client interactions have shifted to video conferencing for most of us, offering a different experience from face-to-face conversations. This required an increased focus on understanding the client’s ‘world’ and problem areas, particularly when these are COVID-19-related. In other words, empathy. Empathy is a critical EI skill we can all develop. Accountants sometimes revert to analytical and problem-solving skills rather than simply listening without judgement or offering possible solutions. Although our role does not typically involve counselling others, building good relationships is essential and will ultimately pay dividends in the future. Furthermore, by showing empathy, you are likely to improve your client’s level of trust in you, your team, and your business. Despite the professional service all accountants offer, never underestimate the importance of showing that you understand and can relate to your client’s problems – professional or otherwise. Returning to the office It is difficult to predict how our professional interactions will function in the future and whether we will return to a full-time office environment. For those who have already returned, even on a part-time basis, there are new norms for interacting with colleagues – social distancing, one-way systems, meeting room attendee restrictions, and the omnipresence of hand sanitiser. Another core aspect of our EI involves the ability to be flexible, particularly when faced with unpredictable or, in the case of COVID-19, unfamiliar situations. In accountancy, the need for certainty and predictability often forms part of the individual’s repertoire. Indeed, it is often one of the reasons why accountants are so effective in their role. Recognising that our work environments and interactions with others are likely to be different in the future is a significant change that may take time to accept. One of the principal starting points is to explore your own expectations – regardless of whether these relate to our offices, clients, teams, or how we will interact with people. It is our expectations that will either restrict or endorse our ability to accept an unfamiliar future. Are you ready for the EI challenges that lie ahead? Ben Rawal is Managing Director and Lead Consultant at Aspire Consulting Solutions.

The recently published code of practice on the right to disconnect is now in effect. While failure to follow the Code isn’t an offence, it can be used as evidence in court. What do employers and employees need to know? Aoife Newton explains. On 1 April 2021, the Workplace Relations Commission (WRC) published a new Code of Practice for Employers and Employees on the Right to Disconnect. It was developed following a request by An Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar T.D., as part of a government programme to support and facilitate remote working. The Code provides guidance on best practice on the right to disconnect and applies to all employment forms, including those working remotely. Failure of an employer to follow the Code is not an offence. However, the Code is admissible in evidence in proceedings before the civil courts, the Labour Court, or the WRC. The Code was introduced with immediate effect. The new Right to Disconnect There are three key elements to the Code: the right of an employee to not have to routinely perform work outside their normal working hours; the right not to be penalised for refusing to attend to work matters outside of normal working hours; the duty to respect another person’s right to disconnect (for example, by not routinely emailing or calling outside normal working hours). Implementing the new Code The main objective of the Code is the creation of a workplace culture in which employees feel they can disconnect from work and work-related devices. The Code encourages employers to: develop a Right to Disconnect policy by actively engaging with employees (and trade unions), reflecting the business’s unique needs and employees. A sample outline policy is provided in the Code to assist employers in drafting their own policy; ensure that such a policy is ‘equality proofed’ to make sure that there are no unintended negative consequences for any particular employees who may have unique responsibilities (for example, caring responsibilities or those with a disability who may need to avail of more flexibility); refer to the Right to Disconnect policy in employment contracts and cross-reference this with the employer’s Dignity at Work, E-Communications, Data Protection and Confidentiality policies. The Right to Disconnect policy should also be discussed during an employee’s induction process; provide managers with training and support on the right to disconnect so that they can demonstrate a clear commitment to the policy through leadership and being active role models; provide training and support for employees to reinforce the appropriate behaviours around disconnecting from work outside normal working hours; hold annual reviews to examine the effectiveness of the Right to Disconnect policy within the organisation (if applicable, in consultation with trade unions); consider using email footers and pop-up messages to remind employees, clients and customers that there is no requirement to reply to emails out of hours, and an answer should not be expected. It is noted that there are situations where flexibility will be required and that there are occasional legitimate situations where it may be necessary for there to be contact outside of normal working hours. A Right to Disconnect policy should provide clear guidance around expectations of normal working hours and outline any exceptions. Existing legal obligations on employers The Code is to complement existing legislation and it provides guidance and clarification on the current statutory obligations of employers, including an employer’s obligation to: provide detailed information to employees on their hours of work (including overtime); ensure that employees are informed of what their normal working hours (daily and weekly) are reasonably expected to be; ensure that employees take rest periods in accordance with Working Time legislation; ensure a safe workplace, including reviewing risk assessments and safety statements in accordance with Health and Safety legislation; refrain from penalising an employee for acting in compliance with any relevant provision or performing any duty, or exercising any right under Health and Safety legislation. Existing legal obligations on employees Although there is a significant focus on employers’ obligations, there is also an emphasis on employees’ responsibility. Employees are expected to protect their health, safety and welfare, as well as that of their co-workers. Employees should manage their own working time and fully cooperate with any mechanisms their employer has to track working time, including when working remotely. Employees are also asked to be aware of the right of their clients, colleagues and all other people to disconnect by not routinely making work-related contact outside of normal working hours. The Code encourages employees to take responsibility for their own work-related wellbeing, including ensuring that they take their statutory rest periods and notify their employer when they have not availed of a statutory rest period to which they were entitled. Going forward Employers should consider undertaking a review of their working time policies and contract clauses and consider implementing a Right to Disconnect policy that addresses issues surrounding the right to disconnect through awareness and training, where required. Aoife Newton is the Head of Employment and Immigration Services at KPMG.

Automation of functions has undoubtedly made our lives easier, but what about our people and interpersonal skills? Dearbhla Gallagher outlines four essential skills for greater work and leadership success. In an era of rapidly evolving technology where more work activities have become automated, people and interpersonal skills may be moving down the priority list for some businesses. In the accounting sector, which has traditionally measured success by numeric metrics, the importance of people skills can also be overlooked. While technical ability remains a prerequisite of the job, today’s professional accountants need to acquire a broader range of skills that go far beyond traditional accounting tasks if they are to succeed. The four key skills Strong communication skills are essential for the modern professional accountant. Breaking down highly technical language and conveying complex information in simple terms is part and parcel of the job. Consider the audience – those who are not as numbers-savvy will lack the ability to understand and decipher the data the way accounting and finance professionals can. But communication is much more than sharing information; it is also about active listening – listening to your clients, peers, and employees. Poor communication can lead to serious misunderstandings that result in mistrust between employers, employees and even clients. Adaptability and flexibility are crucial to success. Both things and people change all the time. The COVID-19 crisis has highlighted the need to be adaptable and flexible to meet head-on the ever-changing environment in which we operate. Professional accountants who can adapt will be better equipped to anticipate future changes to serve their clients in a world that is being turned upside down by the pandemic. Influencing skills are more than just the ability to communicate. Solid influencing skills enable a leader to get buy-in to their ideas and plans without the need to steamroll their way through the opposition. The ability to influence people, their behaviour, and their decision-making is a key skill for a professional accountant. It allows for the building of trust-based relationships with colleagues and clients, which lead to positive results. Emotional intelligence is another critical skill that enables an individual to manage their own emotions, and the emotions of others, in the workplace. Fostering strong business relationships with colleagues and clients is central to building trust and a better rapport with people. Numeracy skills will only take you so far; cultivating emotional intelligence will ultimately enhance your leadership skills. Professional accountants have a remarkable ability to look closely at details while simultaneously thinking more strategically in a way that escapes many other professionals. This dual ability is a valued leadership trait. Effective leaders can, and do, shape the future of the industry they work in. As accountants advance in their careers, they need to develop their people skills to become even more effective leaders, better motivate employees, and boost morale among employees, thereby creating an engaged workforce. And an engaged workforce is one your clients will want to work with. Dearbhla Gallagher is the Learning & Development Manager at Baker Tilly.

Although Government supports are currently keeping businesses afloat, business owners question how they will move forward in the absence of these lifelines. Sarah-Jane O’Keeffe examines what business owners can do now to secure their future. With the introduction and rollout of the vaccines, those living in Ireland now have a degree of hope. As such, the recovery of the economic landscape post-COVID-19 is front of mind. We are now asking two critical questions: what does the future of business look like? how will we transition post-pandemic to the next normal? ‘Hybrid’ working We have become accustomed to new ways of working, and a full return to the office looks unlikely for certain industries. It seems that hybrid work models are here to stay for the foreseeable future, allowing employees to split their time working between the office and home where possible. Business owners will be aware of this demand for new and innovative flexible working arrangements and will react accordingly. This may involve maintaining office locations but downsizing commercial property. The possible downsizing of office space and exiting of leases must be considered sooner than later, as potential conflict may arise between landlords and tenants. Business supports Undoubtedly, Government supports are keeping distressed industries like hospitality, non-essential retail, and aviation in business during COVID-19 lockdowns. However, business owners have questions and concerns, with some wondering what will become of their business when these supports cease. Understandably, a reasonable level of uncertainty exists, with many business owners worried that the demand for their products or services in a post-pandemic world will be insufficient to service the level of debt that has accumulated since operations were halted. Directors of these businesses should take proactive steps to engage with experts and be aware of their director duties and the restructuring options available to them, such as examinership and the new Summary Rescue Process. The basis of this newly proposed legislation is to help small- and medium-sized enterprises (SMEs) restructure in the face of difficulty, providing access to a cheaper corporate restructuring tool that will give them the best chance of survival. The primary focus of the examinership legislation regime is rehabilitation and job preservation. While Government supports for business are due to finish on 30 June 2021, they will likely be extended while COVID-19 restrictions remain. However, when they eventually end, businesses – particularly within the hospitality industry – will need the public’s support to help them get back on their feet. With international travel off the cards for the foreseeable future, these businesses will rely on the domestic market. The hospitality industry is a vital element of the economy, and the public will play a central role in ensuring that it thrives again. Act now Companies must think about the future and potential issues now as opposed to later when Government supports cease. Companies should seek the relevant restructuring advice and consider possible options now. Also, they must consider lease commitments and perform stress tests on the company’s finances in the current climate and whether it has a reasonable prospect of survival post-pandemic. A restructuring expert, and indeed the examinership process, can guide companies on these issues. Sarah-Jane O’Keeffe is a Senior Manager at Baker Tilly, a contributor to the recently published book A Practical Guide to Examinership, and Ireland’s first female Examiner.