Tom O’Brien, Managing Partner at Forvis Mazars Ireland, talks to Barry McCall about his plans and priorities for the growing firm On 1 June this year, international audit, tax and advisory firm Mazars and Forvis, the eighth largest public accounting firm in the United States, formally joined forces to create a new global network positioning both firms for continued growth. Looking back on the development, Forvis Mazars Ireland Managing Partner Tom O’Brien says it was a natural progression for Mazars. “Obviously Mazars was largely a European Group,” he explains.  “The American issue had been an important strategic question for us for some time. As we grew – and given the size and nature of some of the mandates Mazars were winning – the need for a stronger presence in the US became more pronounced. We had offices in New York and in other cities on the eastern seaboard, but we wanted to expand to have a coast-to-coast presence with a full-service offer for clients.” The question was whether to do that organically or through acquisition and it was answered by the conversation with Forvis. “Forvis was the eighth largest accountancy firm in the US and was of similar size to Mazars,” O’Brien notes.  “It also had a similar offering and capability and approach to client engagement. There was an alignment of views and clear synergies to be had. We saw it as a good fit straight away. It was a win-win for both organisations. Mazars would get a US coast-to-coast presence while Forvis would get a significant presence across Europe.” The deal was not a merger, O’Brien emphasises. “The two firms have retained their independent ownership but operate under the same brand with a common approach to client service, quality standards and work methodologies. Everything is the same in terms of the client experience. This has created a new global top 10 network, the first new entrant into those rankings for a very long time.” He is enthused by the potential of the new network, both for Forvis Mazars Ireland and its clients.  “It is a very exciting time. For our clients with a presence in the US or ambitions to expand into that market, we have a really strong presence there now as well as access to all of the expertise and sectoral specialisms they had come to expect from Mazars here in Europe,” O’Brien says.  “From an Irish perspective, our expectation is that the network will open the door for FDI business and underpin our growth plans for the future.” James Byrne & Company merger Closer to home, Forvis Mazars’ recent merger with James Byrne & Company in Cork marked another important milestone for the firm.  “However hard it was to break into the US, it was even harder to break into Cork,” O’Brien notes with some humour.  “It was always our ambition to be a truly national firm, and you can’t claim to be that without a significant presence in the country’s second largest city.” Once again it was a question of whether this aim would be achieved through organic growth or partnering with another firm.  “When we first met Fiona and John Byrne, we came to the view that partnering was the way to go. When they say that people do business with people, it really is true. Straight away we could see the alignment of culture and values with both sides sharing a common approach to professional practice and client service. It is a really good fit.” Further growth plans O’Brien’s growth ambitions do not end with the merger. “We have a full-service capability in the Cork office with 30 staff at present. We aim to grow this to 60 very, very quickly. With our offices in Galway, Limerick, Cork and Dublin, we really are a national firm now.” Mergers and acquisitions (M&A) have long been part of the Forvis Mazars’s growth strategy. “We’ve never been afraid of it,” O’Brien says.  “More recently, we have been very active in hiring teams where they can add to our existing service offering to clients. We have been quite nimble and open to a variety of options when it comes to growing the practice.” This growth strategy will continue. “I have been with the firm for 20 years and it’s been a very exciting time. We have a very young partner group with an average age in the mid-40s. They are a very ambitious and energetic bunch, and they certainly keep you on your toes. We have achieved high double-digit growth over the last number of years.  “When I became Managing Partner in 2022, I set a target of growing the firm to 750 people and a turnover of €75 million by 2025. We were at €55 million in revenues at the time.  “This year we will exceed the target when we breach €80 million for the first time, and we are now quickly closing in on becoming a €100 million firm. We have grown to 920 staff around the country and are on target to reach 1,000 next year.” This growth is coming from all areas of the firm, but O’Brien highlights recent successes in winning audit business with blue-chip clients, including Bank of America and Wells Fargo among others.  “These types of clients were the traditional preserve of the Big Four, but, as clients see what we can do, they have invited us to pitch for that work. We are very much playing in that sphere now. The market was crying out for alternatives to the traditional large firms, and we are providing that much needed competition.” The Forvis Mazars M&A team has also been involved in several significant transactions this year. “That space is very interesting and has been very strong for us,” O’Brien says.  “In May, we held the inaugural Mazars Irish Private Equity Awards. It was the first event of its kind for the private equity and corporate finance sector in Ireland. We had 500 people in the room and could have had double that, such was the response. That is an indication of our standing and profile in the market.” O’Brien attributes this standing to the firm’s unwavering focus on the client experience. “We strive to ensure it is superior to anything else in the market while delivering the levels of technical excellence our clients have come to expect,” he says. “We are also focused on doing the little things right – things like responsiveness to calls and queries, proactive client engagement, meeting deadlines and a partner-led approach to all client engagements. They all matter. The challenge for us now is to continue to grow our team and invest in technology and emerging business lines to respond to changing client needs.” Economic outlook Looking to the wider economy, O’Brien sees some challenges ahead for Ireland, particularly in the battle for foreign direct investment (FDI).  “When we look back at the various issues that have hit Ireland over recent years, the domestic economy has proven to be remarkably resilient. The FDI sector is strong, but there are certainly headwinds on the horizon,” he says. “The Apple case sets a precedent on competition and state aid rules and there is strong and growing lobbying in the EU from some of the larger member states for an easing of state aid rules across sectors like technology, chips and semiconductors, which will potentially make it more difficult for countries like Ireland to attract that business. “Domestically, everyone knows we have infrastructure, housing and public services issues. When it comes to deciding what to do with the €14 billion Apple windfall, there is an argument that we should listen to the FDI community to address some of its pain points in areas like housing for staff and transport and other obstacles to growth. This perhaps would be a good starting point in deciding what to do with the Apple money.”

As SD Worx plans further expansion in Ireland, Country Lead Eimear Byrne, FCA, talks to Barry McCall about her role in the Belgian company’s entry into the Irish market and ongoing investment In February this year, payroll and HR solutions provider SD Worx announced plans to create 40 jobs in Ireland over two years, growing its team to 115 as part of a €2.9 million investment in its workforce.  More recently, the company unveiled a separate €3 million investment in its payroll offering, which will now be made available to SMEs in Ireland.  Historically, servicing medium and large enterprises with over 250 employees, SD Worx will now offer its payroll solution to smaller businesses across all industries. The move comes as SMEs in Ireland continue to face mounting challenges, including intense competition for top talent, increasing regulations and rising costs. For Eimear Byrne, FCA, Country Lead at SD Worx Ireland, it marks the beginning of a new chapter in a career that has seen her move from the Big Four environment into industry where she played a key role in readying Irish company Intelligo for its 2022 acquisition by Belgium-headquartered SD Worx. “We have scaled up our capabilities so that businesses that may lack the necessary internal resources can keep pace with evolving payroll trends and requirements,” says Byrne. “Our new offering means SMEs can continue to grow and thrive with on-hand payroll support and cost certainty.” Preparing for acquisition The SD Worx brand may be relatively new to Ireland, but its service offering is already well-established here, Byrne says: “Our enterprise-grade payroll solution pays one-in-five employees in Ireland’s corporate sector.” Byrne was appointed as SD Worx Country Lead for Ireland following the Intelligo acquisition, having formerly held the role of Intelligo’s Head of Finance and Operations.  “I was on maternity leave when the approach came from the founders of Intelligo to manage the sale of the company to SD Worx,” she recalls.  “It was a pivotal moment – managing the disposal and preparing for a new chapter in my career. I took charge of every aspect of the process, becoming the key point of contact between the founders and SD Worx. It stands out as a highlight in my career, showcasing what can be achieved when you step up to new challenges.”  Byrne began her career in 2004 in the tax department of KPMG where she dealt with a wide range of clients across a variety of sectors.  “I qualified in accountancy and tax between 2004 and 2008 and got fantastic exposure to the commercial world. It is a great foundation for a career. I have only positive things to say about working for a Big Four professional services firm,” she says. Byrne left KPMG in 2008 to travel for a year. “I felt I had been sitting too long at a desk,” she explains. Moving into industry On her return to Ireland, she decided to move into industry. “While I loved the exposure to a lot of different companies, I wanted to drive one company forward,” she says. “I joined Atlanco Rimec in 2009. It was an Irish-owned and headquartered temporary labour provider, with customers in several overseas countries.  “I was the group accountant and prepared consolidated accounts for the different countries and was also involved in commercial contracts. I decided to move on in 2010. I worked with some fantastic people there, but I felt ready for new opportunities and to pursue the next stage in my career.” From there, Byrne went to work with the late solicitor and businessman Ivor Fitzpatrick as Finance Director for his private businesses.  “Ivor Fitzpatrick owned a number of different businesses in addition to his prestigious law firm, which included telecoms for aviation and maritime industries, the Christina O yacht formerly owned by Aristotle Onassis and hospitality, commercial property, debt management and other interests,” she says.  “Through managing these businesses, I got involved in operations and really enjoyed it. Working with a fascinating visionary like Ivor with such incredible intelligence was a learning experience that shaped my approach to business and management.  “I made the decision to move on when I was starting a family as there was a lot of travel involved and I couldn’t do both.” Improving structure and processes This decision brought Byrne into the next phase of her career when she joined the payroll software company Intelligo in 2016.  “They had always used external accountants and weren’t sure if they needed someone internally, but had been advised to take on a financial controller and I quickly saw opportunities to help the two founders drive the business forward,” she recalls. “I focused on harnessing data that hadn’t been explored, which led to some immediate but significant improvements.  I standardised processes and brought more structure.  “With improved processes and better resource allocation, we were able to respond to customer needs more efficiently, deliver higher service standards and ensure consistent quality across all channels.” The impact on revenue and EBITDA was quite dramatic. “We had compound annual growth of almost 20 percent every year and higher post-COVID.” Byrne also set up other departments to professionalise the management of the company. “The employee base grew by more than 50 percent from when I joined up to our acquisition,” she says.  “I first set up the finance function and then HR. In 2018, I led a project to obtain an independent valuation and complete the buyback of shares to put the entire shareholding into the founders’ hands.  “To facilitate the buyback, we did a corporate restructure and we took on debt finance to ensure the continued growth of the company. It was an invaluable experience for the subsequent acquisition by SD Worx.” Next up for Intelligo was a new legal department. “We had outsourced our legal work but that wasn’t always the best fit for our business. External advisors might not fully understand internal operations,” explains Byrne.  “Evergreen contracts set out ways of operating that no longer align with the business or the industry, for example. I took the lead and revised our contracts, becoming the point of contact for negotiations with every client.  “As a result, we were able to streamline client interactions, reduce operational headaches and ultimately enhance the overall customer experience. We appointed an in-house legal counsel after that to support our continued growth.” Delivering optimum profit Looking back, Byrne says her biggest achievement was ensuring every revenue stream yielded optimum profit.  “It was about getting more structured every year and understanding how to drive efficiency in the business,” she says. The next chapter for Byrne was preparing the exit plan for Intelligo’s two founders. “There was a lot of consolidation in the market. COVID was a big driver of that as it introduced a lot of new payroll regulations overnight.” SD Worx has been providing payroll services across Europe since 1945 and, up until the acquisition, had been using Intelligo software for payroll processing in Ireland.  “They didn’t own payroll IP in Ireland, and they wanted to de-risk their payroll offering to clients. Intelligo had a very impressive client base of over 300 medium-to-large-sized enterprises, many of them international,” Byrne says.  “SD Worx saw Ireland as a hub of business interaction with an excellent crossover with their pre-existing international clients.  “Through acquisition, we still deliver exceptional payroll solutions but can now offer much more by expanding our product portfolio to include workforce management, HR, talent management, data and analytics. We can support in-house service as well as provide outsourced solutions and consultancy.” M&A trajectory in European markets SD Worx has 90,000 customers across Europe and employs 8,000 people. “It is a huge company, which is still growing,” Byrne says. “It is on an M&A trajectory with the aim of being the European leader in integrated payroll and HR solutions, supporting clients along the whole employee journey from recruitment to retirement. My role as Country Lead is to deliver that vision in Ireland.” This vision was the driving force behind the company’s recent entry into Ireland’s SME market for the first time.  “We have taken our mid-market and large enterprise knowledge and expertise and applied that to SMEs,” Byrne says.  “We are also adding new products. Last year, it was workforce management. This year, it is an HR solution. Talent management and an academy for learning and development are next. We will continue to add products as we establish ourselves as an integrated provider of payroll and HR solutions for Ireland.” SD Worx will also continue to innovate and enhance its flagship payroll technology, MegaPay. “Payroll is complicated, and it changes very fast,” Byrne says.  “We need to pivot very quickly to accommodate things like statutory sick pay change, auto-enrolment pensions and enhanced expense reporting, which was as big a change as PAYE modernisation.  “The increased administrative burden makes it difficult for SMEs to stay abreast. As a result, we are seeing demand for webinars and newsletters to keep our clients updated.” Demand for outsourcing integrated payroll and HR services is also on the rise. “If a company does this in-house, there can be a point of exposure,” Byrne says.  “If a person looking after payroll in-house becomes sick, there are compliance and other risks. Outsourcing to SD Worx removes risk and deals with compliance.  “We deliver better data and analytics to our clients who get a more holistic view of how their business is operating and performing. Our integrated HR and payroll and talent management solutions help them manage people costs to drive efficiencies and profitability.”

IDA Chair Feargal O’Rourke, FCA, talks to Accountancy Ireland about the inward investment agency’s plans and priorities at a “critical juncture” in Ireland’s FDI journey Feargal O’Rourke, FCA, assumed the role of Chair of IDA Ireland in January 2024 at a significant time for the inward investment agency, which celebrates its 75th anniversary this year – and, he says, a “critical juncture” in Ireland’s foreign direct investment (FDI) journey. O’Rourke joined the board of IDA Ireland after stepping down as Managing Partner of PwC Ireland in October 2023 following a storied 37-year career with the firm. In his new role, working alongside IDA Ireland Chief Executive Michael Lohan, time is, he says, “of the essence.” “The one thing I am always paranoid about is complacency, and I think you really do need to have a paranoia about that,” O’Rourke tells Accountancy Ireland.  “Right now, I think Ireland has ‘amber lights’ on infrastructure and we need to put the foot down. We need to invest in more housing. We need to invest in the grid. We need to invest in offshore energy.  “My biggest concern is speed. There are plans in place, but I constantly ask myself, ‘Are we moving fast enough? Can we move faster?’ “I think there is a broad consensus emerging that infrastructure is moving up our list of priorities.  “I take the view that capital spend on infrastructure is an investment. It is not an outflow of money. Deferring a project is a cost. It is not a saving because we will have to do it at some point, and it may cost more then.” New five-year strategy The single biggest task for IDA Ireland as an organisation currently is finalising a new five-year strategy, which will run from 2025 to 2029, O’Rourke says.  “We are doing this against the backdrop of significant geopolitical uncertainty. There is a more muted pace of growth in the global economy and more active industrial policy from some competitor nations,” he says. “There is also the challenge of climate change and the opportunity of the green transition, companies globally grappling with the next step on their diverse digitalisation journeys and, of course, the revolution that is taking place in artificial intelligence.” Ireland’s ability to continue competing in this fast-changing world will be dependent on having the right set of enabling conditions in place”, O’Rourke says.  “As we face challenges in terms of our national competitiveness relating to energy costs and renewable energy provision, housing, infrastructure and utilities, countries around the world are vying to win the race for the next generation of FDI growth. “The opportunity cost of not addressing these issues in a timely manner – particularly sustainable energy supply – risks being sizeable,” he warns. Storied career in practice A native of Athlone, O’Rourke studied commerce and accounting at University College Dublin and qualified as a Chartered Accountant with PwC in 1989. He is also an Associate of the Irish Tax Institute and current Chair of the Institute of International and European Affairs, the Irish-based international think tank. “My father left school at 16, so he always placed a big emphasis on education and business,” O’Rourke says. “He thought I should qualify as a Chartered Accountant and the ‘Chartered’ bit was very important to him, because he felt it had a cachet. That was back in the eighties, and I think the qualification still holds a distinction today. “I remember sitting my final accounting exams thinking, ‘I wonder what this bit of paper will do for my life?’ “There is no doubt that having the Chartered Accountant qualification contributed so much to me living out my professional dreams in the years that followed. The status it brought with it is hugely important and I think the standing of the qualification is as strong today as it was when I qualified.” O’Rourke joined PwC in Dublin in 1986 and remained with the firm for 37 years, holding the position of Managing Partner for the last eight. “I joined what was then Price Waterhouse on 8 October 1986, with the intention of qualifying as a Chartered Accountant and then returning home to Athlone,” he recalls. “Thirty-seven years later – to the day – I retired from PwC having had a wonderfully fulfilling career that was beyond any expectations I had when I joined.” His experience with the firm instilled in O’Rourke the importance of strategic planning for long term success – and it is a lesson he has brought with him to IDA Ireland. “You can’t just think about an organisation as it exists today, and the current generation. You must ask yourself, ‘when I’m 20 and 30 years gone, will I have seeded the fields to ensure it continues to succeed long into the future?’” With Central Statistics Office figures released earlier this year predicting Ireland’s population could grow to over seven million by 2057, O’Rourke’s vision for IDA Ireland is equally long term. “In my role with IDA Ireland today, I am thinking ahead to 25 or 30 years from now and asking, ‘what will Ireland look like then?’ “We have got to play our part in advising the system today if we want to have the right industrial base in the years ahead, not just to continue to attract FDI but also to support indigenous businesses and wider society at a time of ongoing population growth. “I feel a responsibility, as do many others in the system, to say, ‘okay, how does this organisation contribute to ensuring that we will have a successful society in which there are plenty of jobs for people? Do we have the infrastructure we need – both societal and industrial – whether that be in terms of housing, energy supply, water or transport?’  “These are as much societal issues as they are business issues and IDA Ireland will play its part. Building capacity is crucial. Ireland is facing infrastructural capacity issues, and they are a priority for IDA Ireland, particularly over the next five to six years.” FDI and global tax developments Having been appointed as a Tax Partner in 1996 and Head of PwC’s Tax Practice in 2011, O’Rourke spent a significant portion of his career working in Foreign Direct Investment (FDI).  “I worked extensively – but not exclusively – with household names from the West Coast of the US. I was privileged to work with many of the companies that now rank among the largest FDI employers in the country,” he says. “I still have the memo in which my then Partner Tadhg O’Donoghue said, ‘I’m going to ask you to focus on a particular area of tax – FDI.’ That one line in a memo almost 40 years ago completely determined my career and my life thereafter.” O’Rourke saw the evolution of Ireland’s FDI landscape firsthand over that span of time. “Tax became central to Ireland’s FDI proposition, delivering a major competitive advantage for us back in the eighties and nineties. It has really played a central role in how Ireland has positioned itself to attract FDI,” he says. As Head of PwC’s Tax Practice, O’Rourke also collaborated extensively with companies, officials, governmental bodies and the Organisation for Economic Cooperation and Development on the Base erosion and profit shifting (BEPS) initiative introduced in 2013 to curb tax avoidance among multinationals operating across different jurisdictions. “Successive Irish Governments over the past 15 years have really got it right on our FDI-related tax policy and we are now seeing the benefits of this in terms of our corporate tax take,” he says.  “That contribution to the State coffers is being used to build hospitals and schools, but other countries in the post-BEPS era are moving fast on their own FDI-friendly tax strategies, and I think we need to move quickly as well and make sure we continue to be agile and responsive, looking around the world and asking, ‘what lessons can we learn here from what others are doing?’” “A world-class organisation” Just over 10 months into his role with IDA Ireland, O’Rourke’s pride in the organisation is palpable. “In sporting terms, IDA Ireland is like Limerick in hurling or Manchester City in football,” O’Rourke says. “We have a fantastic record of success, but once the season is over, we must do it all again. We can survive a year where we are not top of the pile, but we can’t afford to enter a period where we are living off past glories. “You wouldn’t say to the Limerick hurling team, ‘you need to ease off the training for a few years and let everyone else catch up,’ nor would you say to Manchester City, ‘you shouldn’t buy any good players for now.’ “I don’t think IDA Ireland as an organisation should ever say, ‘we are doing really well, we could pull back a bit’. Life doesn’t work like that. Michael Lohan, our Chief Executive, often says, ‘when you turn off the tap, there is no guarantee that, when you turn it back on again, water will come out.’” As it stands, O’Rourke sees IDA Ireland as a “world-class organisation.” “This is not just my own view,” he says. “Over the course of my 37 years in professional services, I was repeatedly told this by clients who had experience of being ‘courted’ by a variety of inward investment agencies from around the world. “Today, our IDA Ireland clients tell me time and again, ‘we feel welcome in Ireland; we feel supported’.” These IDA Ireland client companies employ 300,583 people directly, accounting for 11 percent of total employment in Ireland currently. They spend a combined €35.8 billion annually on payroll and Irish-sourced goods and services, and €15.5 billion in capital expenditure. In total, 248 investments were approved by IDA Ireland in 2023 and a further 131 in the first six months of this year, with the potential to create some 27,000 jobs. “While I expect the pipeline of projects to continue to be strong as we move through 2024, the challenges we face to stay at the forefront of attractive locations to invest in are significant,” O’Rourke says. “If we stand back, there is no doubt that FDI flows have slowed a bit compared to, say, four or five years ago.  “This is, in part, because we have probably already seen the high watermark in globalisation. In retrospect, I think that occurred somewhere towards the end of the last decade.  “The good news for Ireland is that we are continuing to win FDI projects of substance and the 300,000 FDI direct employment figure is a new plateau for us.  “For many years, the benchmark for direct employment was 200,000. Now, our focus is on keeping that figure above 300,000 as we look to build on the next FDI cycle.” Emerging opportunities As IDA Ireland looks to future FDI growth, its focus will be centred on emerging opportunities in the ongoing green and digital transitions reshaping the global economy, O’Rourke says. “We recognise the need to help the Irish operations of global firms transform to thrive in a world that is changing fast.  “We actively partner with client companies on investments in talent development, digitalisation, research and development, innovation and sustainability, including decarbonisation,” he says. “When I was Managing Partner at PwC and we were at our most profitable and successful, we decided we needed to invest heavily in digitisation.  “It wasn’t just an investment in technology, it was an investment in our culture. Even though there were no clouds on the horizon, we could see that, if we stayed still, we might have another few great years – but, really, we needed to invest in the technology to continue growing beyond that. “Our focus now at IDA Ireland is on helping our clients to invest in the areas they need to focus on to do the same – to prepare to continue succeeding in the future. This means supporting them on investment in digitalisation and sustainability.” Collectively, IDA Ireland client companies spend over €7 billion on in-house research, development and innovation (RD&I) annually.  IDA Ireland approved 25 sustainability projects last year, focused on carbon abatement and building Ireland’s green economy.  New RD&I projects won by the semi-state agency in 2023 came with associated client spend commitments of €1.4 billion.  “With the requisite enabling conditions in place at a national level, aligned to emerging FDI attractiveness factors – such as AI skills and renewable, reliable and affordable energy – I think we will be well-placed to capture new investment opportunities,” O’Rourke says. A particular focus is Ireland’s future capacity to generate renewable energy – specifically, offshore energy. “We have been very vocal about the importance and potential of offshore energy. If Ireland gets its offshore energy strategy right – both fixed and floating – we could be in a surplus energy position in 10 years’ time,” he says. “That could transform our capacity to attract energy-intensive multinationals from various industries, because we would potentially be in a situation where have no constraints in relation to our ability to supply green energy.” O’Rourke is, he says, a born optimist. “When it comes to our strategy at IDA Ireland over the next five years, I do genuinely and fully believe that our best years are ahead of us.”

Having ascended to the role of Finance Minister just four months ago, this year’s budget was Minister Jack Chambers’ first at the helm of the finance portfolio but the last we will see from the current Government.  With a general election now firmly on the horizon, Budget 2025 was unsurprisingly brimming with generous giveaways for individual taxpayers, including a €1 billion bouquet of personal tax reductions alongside a €2.2 billion hamper of cost-of-living measures.  The giveaways were spread so universally that most individual taxpayers, even those arguably not in need of them, got some degree of ‘bounce’ from the Government but, in a budget so warmly generous, some constituencies were left out in the cold.  Sweetening the electorate Among the suite of income tax measures announced in Budget 2025 were a €2,000 increase to the standard rate cut-off point, a one percent reduction to the four percent rate of Universal Social Charge and a €125 boost to each of the main personal tax credits.  Taking into account the additional cost-of-living payments also announced (including €250 in new electricity credits, and a double payment of child benefit in November and December) the average worker will be about €1,000 better off over the next 12 months.  Add to this an increase to the inheritance tax thresholds across all groupings and one would be forgiven for thinking this was a Celtic Tiger budget of the early to mid-2000s.  Reacting to the package, the Fiscal Advisory Council pointed out how “only about half of the Government’s €2.2 billion cost-of-living measures were targeted,” and emphasised how “the same supports could have been provided to those most in need at a much lower cost”.  Indeed, in an economy at near full employment with inflation at its lowest since 2021, it’s hard to see how such excessive giveaways, bolstering individual spending power, don’t ultimately risk overheating an already red-hot economy. The opportunity cost  But Budget 2025’s preoccupation with wooing individual voters in the run-up to an imminent election came at a cost to other constituencies, particularly small businesses.  Despite months of assurances from Ministers that concrete steps would be taken in the Budget to address the burgeoning costs of doing business, many SMEs may rightly feel left out of the Government’s wave of generosity.  Some measures will be welcomed, such as a one-off Energy Subsidy Scheme worth about €4,000 to businesses in the hospitality and retail sectors, as well an increase to the VAT registration thresholds for the supply of goods and services. However, no real steps were taken to address the elephant in the room – namely, ballooning labour costs.  Ask any small business across the country (and we have – in our Survey of Small Businesses conducted this summer) and they will tell you that labour costs are the single biggest operating cost they face today.  And labour costs are now on the rise again – with a six percent increase to the minimum wage announced as part of the Budget package and an additional 1.5 percent uptick in staff pension costs coming down the track as part of pensions auto-enrolment, due to be launched next September.  Budget 2025 offered a real opportunity for Government to take meaningful steps to ease these cost burdens and take the pressure off small businesses’ narrowing bottom lines.  One option might have been to lower the rate of Employers’ PRSI by 1.5 percent to mitigate the concurrent cost of pensions auto-enrolment to employers, particularly those who employ workers in and around the minimum wage.  We estimate that doing so would have cost in the region of €63 million per annum based on 164,000 people working full-time at the minimum wage.  Such a step would have made a huge difference to small businesses across the country and comes with a more modest price tag than some of the more gratuitous cost-of-living measures included in the final budget package.  But alas, because it is individuals and not businesses who get to vote on election day, perhaps such measures failed to meet the objective of political expediency.  Stephen Lowry is Head of Public Policy at Chartered Accountants Ireland

Eimear O’Hare provides insights into how private equity can support business growth and outlines the critical steps to ensuring success In today’s fast-paced business landscape, owners and shareholders must be prepared to make pivotal decisions that shape their companies' future. Whether it's scaling operations, innovating or preparing for an exit, private equity (PE) has emerged as a powerful tool to unlock growth, create jobs and drive value. With 91 percent of businesses surveyed by BDO recommending the PE journey, it is clear that many companies view this as a path to success. However, misconceptions persist, often overshadowed by high-profile, negative stories in the media. The transformative power of private equity Private equity is far more than just capital; it’s a partnership that can catalyse significant growth, operational improvement and value creation. Under PE ownership, 87 percent of companies have reported increased growth —illustrating the transformative potential of these investments. PE firms bring not only financial resources but also strategic guidance, expertise and networks that can help scale businesses to new heights. However, despite the clear benefits, some business owners hesitate to explore PE, often due to a lack of understanding or misconceptions about what it involves. Negative press can obscure the positive outcomes, leading to misplaced fears about loss of control or aggressive management. Strategic alignment: where to start Embarking on the private equity journey requires a strategic mindset. The first step is to define clear objectives – whether that is rapid expansion, operational restructuring or planning for an eventual exit. Business owners must also consider what success looks like for their business, both in the short and long term, and ensure these goals align with a potential PE partner. PE funds vary widely in size, sector focus, geographic reach and investment strategy. It is essential to find a partner whose vision aligns with your own and who can offer more than just capital. Preparing your business for private equity investment Thorough preparation is the foundation of a successful PE investment. PE firms seek scalable businesses with a compelling equity story – one that clearly outlines growth opportunities, competitive advantages and a roadmap for value creation. They need to be ready to present a robust business plan, detailed financial forecasts and a clear strategy for growth. Even if your business isn't fully prepared for a PE partnership, PE firms often provide the resources and expertise needed to get you ready for scaling. This might include investments in key areas such as leadership, technology or operational processes. Choosing the right PE investor Selecting the right PE investor can have a lasting impact on the trajectory of your business. Engaging with both current and past portfolio companies is a valuable way to gain insights into an investor’s style, involvement and approach to value creation. Beyond financial backing, understanding an investor’s cultural fit, and their track record supporting growth, is paramount. The PE landscape is diverse, with funds varying in size, focus and geographic reach. From sector-specific funds to those with a broader investment scope, finding the right match for your business’s ambitions requires a deep understanding of the market. Crafting your equity story The equity story is the narrative that encapsulates your company’s growth potential and value proposition. It is critical for aligning all stakeholders – management, investors, and employees – around a shared vision for the future.  A well-crafted equity story should outline your company’s competitive advantages, growth strategy and the steps required to realise value, whether through operational improvements, market expansion or innovation. Navigating the path to exit Private equity isn’t just about growth; it is also about exit planning. For many business owners, PE offers a strategic path to prepare for a future sale, merger, or IPO. The goal is to enhance the business’s value over a period, creating multiple exit scenarios that allow both the entrepreneur and investors to realise returns. Understanding the potential exit options early on is crucial to shaping your business’s trajectory. Whether you aim to hand over control or retain a significant stake post-investment, aligning your exit goals with those of your PE partner is vital. Expand and innovate PE is a powerful tool for business owners seeking to expand, innovate and ultimately realise the full value of their company. However, success demands careful preparation, strategic alignment and choosing the right partners. Eimear O’Hare is a Senior Manager in BDO Ireland’s Deal Advisory group

With five generations employed today’s workplace, leaders must foster inclusion and collaboration across the board. Roisin Loughran explains how As Generation Z enters employment age, there can be five generations in some workplaces: the Silent Generation (1946–1954), baby boomers (1955–1964), Generation X (1965–1980), millennials (1981–1996) and Generation Z (1997–2012). It might be assumed that having so many different generations under one roof can be challenging, to say the least, but are these challenges based on broad stereotypes and preconceptions, or are there real differences and issues arising?  What if we look beyond the stereotypical generational differences, challenge our bias, and focus on the opportunities to maximise the potential and power of all five generations in our teams? Substantial leadership The Centre for Creative Leadership recently studied the preferences of five generations within the workplace. It concluded that “effective leadership is less about style and more about substance.” Regardless of generational background, all employees want to be valued, respected and have opportunities to develop.  For leaders, engaging with and unlocking the power of their multigenerational workforce involves fostering a collaborative, inclusive culture, enabling a safe place for teams to learn from each other, actively engaging across generations, and ensuring open communication and connection. Leaders who invest time in understanding what matters most to individuals, irrespective of generation, and acknowledge their employees’ unique skills, strengths and talents, establish a good foundation of trust and respect.  Setting aside time for employees to share their experiences, discuss business challenges and generate ideas together helps to develop a deeper understanding of the part everyone can play in team success. Leaders who embrace these open and creative conversations within their teams will be rewarded with a collaborative and inclusive culture. Constant learning We all desire a sense of belonging at work, a safe place, without fear of repercussions for asking questions or making mistakes. To advocate for psychological safety at work, leaders may share “failing forward” stories – positioning missteps as an opportunity to grow and develop together.  Leaders should encourage all colleagues to learn from one another, fostering ongoing coaching and mentoring.  Consider the least experienced and most experienced employees. While the least experienced may have received formal qualifications more recently, or be more tech-savvy, the most experienced may be subject matter experts or have learned experience crucial to delivering the service of the organisation.  Imagine the opportunities if both these groups shared their knowledge and skills – what would that mean for that organisation? This ‘reverse mentoring’ is invaluable for businesses today and can be an effective and meaningful way to create lasting connections across generations. Communicating effectively Communication can prove a challenge for leaders due to the diversity of the workforce. To address this, in his recent book, Supercommunicators – How to Unlock the Secret Language of Connection, Charles Duhigg states an essential truth: “To communicate with someone, we must connect with them … If we know how to sit down together, listen to each other and find ways to hear each other … we can thrive”. The prize here is clear. A recent report indicates that age-inclusive organisations tend to have 10 percent greater employee engagement compared to those with less age diversity. In its 2020 report, The Relationship Between Engagement at Work and Organisational Outcomes, Gallup indicated companies with high employee engagement see a 23 percent increase in profitability.  Inclusive leadership Therefore, by understanding employees of all generations and adopting a collaborative and inclusive leadership approach, leaders will reap the rewards of their diverse, multigenerational team's unique perspectives, experiences, and expertise – enabling those leaders to drive their team forward and ensure sustainable growth. Roisin Loughran is an associate director of People and Change at Grant Thornton

It is a candidate’s market for finance professionals in 2024, particularly those with specialised skills and a willingness to engage in continual professional development, writes Paul McClatchie Engage People recently released its 2024 Salary Guide, highlighting several new developments in the finance and recruitment landscape, influenced by different factors. The guide tells us that 75 percent of employees now work “hybrid,” revealing a shift towards flexible work arrangements post-pandemic. More than half feel more secure in their jobs, suggesting growing confidence in job stability in the finance sector. Newly qualified accountants remain in high demand, reflecting the increasing need across many sectors for professionals who deliver strategic financial insights. Further, more than half of the employees we surveyed said they are open to new job opportunities – either due to a desire for career progression, more competitive compensation, better leadership or other factors. Financial transformations In 2024, remote working now finds itself operating in a new context. The advent of COVID-19 prompted the finance sector to work from home and hop online, like almost every other industry out there. Initially viewed as a temporary necessity, remote working has now emerged as a popular and permanent practice in many companies, impacting how salaries are structured and providing better job security for employees who need more flexibility. Our salary guide shows that today’s blend of remote and in-office work has shaped a new form of modern employment by catering to candidates’ rising demand for work-life balance, amongst other factors. Further, work-life balance is influencing decisions made by close to half of employees considering their career path and professional future. Specialist skills The second take away from our salary guide is the growing demand for specialised skills within finance. With many organisations undergoing ongoing digital transformation, candidates increasingly need to be able to apply new levels of expertise. This is, in turn, exerting upward pressure on salaries. Our guide reveals that finance professionals with hybrid skill sets are particularly well-positioned in today’s market. Accountants proficient in complementary skills – such as data science, for example – are likely to benefit from faster career progression and greater opportunities. Demand for expert skills is a reassurance for accountants, but our guide also highlights the need for Continuous Professional Development aligned with the fast-changing needs of business, and the emergence of new technologies and professional practices. This means specialised professionals need to be willing to continue broadening their skill set throughout their career to secure more senior or specialised roles offering higher salaries. High demand for finance professionals The job market for finance professionals thankfully remains strong, with steady demand for talent. In fact, 34 percent of the professionals we surveyed said they had turned down a counteroffer from their current employer when presented with an opportunity with a new organisation. This could suggest that, while employers attempt to retain talent through financial incentives, other factors – career progression and job satisfaction, for example – are becoming more important in employees’ decision-making. This is prompting employers to act more decisively to attract and retain top talent in finance and move away from the traditionally lengthy recruitment process. Paul McClatchie is Founder of Engage People

GenAI is evolving rapidly and has the potential to enable CFOs to deliver valuable new strategic insights and predictive analysis to their organisations, writes Vickie Wall Almost every aspect of the finance function has benefited from technological advances in recent years. Those advances include artificial intelligence (AI), natural language generation (NLG), and optical character recognition (OCR). Automation has freed up time to move beyond financial reporting and engage in the provision of strategic business insights and forecasting for the entire business. Many large organisations have been using machine learning and related technologies to assist in areas like fraud and anomaly detection, transaction processing, business forecasting and customer management. However, we are now on the cusp of a potentially transformative leap forward due to the advent of generative AI (GenAI). This technology can democratise data science and analytics and put coding skills in the hands of just about everyone with the ability to interact with it. It will no longer be necessary for a CFO or finance team member to be skilled in specific programming languages or database query skills. Once they can explain in plain language what they want GenAI to do, the technology should do the rest. AI will be able to take structured and unstructured data from within the organisation and external sources to provide various outputs like trend analyses and forecasts, with numerous variations based on factors like seasonality or user-defined future events. Having done so, it can offer best, mid and worst-case scenarios to aid C-suite decision-making. This capability, which was formerly the sole preserve of skilled data analysts and programmers, is now in the hands of everyone with access to GenAI and who has received basic training on how to interact with it and is willing to experiment. Understanding data science Certain skills are required no doubt, not least of them the ability to understand accounts and financial reporting standards. Beyond that, CFOs and finance teams will need to become familiar with data science, at least to a small extent. This will not necessarily present a major challenge as finance professionals have been using business intelligence systems for many years. However, they will have to develop a much deeper understanding of the topic if they are going to uncover the next layer of value which lies within the data at their disposal. Having the tools to carry out the analysis on your behalf is just one-half of the equation. Knowing what you want to achieve through the analysis is the other. The importance of “prompting” and the ability to do this well will become a key skill in extracting the most from these tools. Currently, GenAI is viewed as a separate tool that operates independently of other software systems. That will remain so for certain general applications, but increasingly it will become an integral part of the software systems used every day in organisations. In future, CFOs and finance professionals will use AI to interact with those systems in different ways. They will use natural conversational language to create reports, run analyses, and produce forecasts. The skill will lie in knowing what questions to ask and recognising where the data’s potential value might lie. The need for knowledge beyond AI A new approach to data gathering will be required when it comes to GenAI. CFOs will need to look beyond finance to other functions and departments to source data for use in forecasts and strategic guidance, as well as to understand those departments’ key needs. That will require knowing where data gets sourced from, how it flows from one system to another, where the bottlenecks lie, where data is leaking or getting lost, and what issues need to be addressed to improve data availability. Having access to that data from across and outside the business in the form of external market reports will be paramount to realising the benefits of GenAI in the finance function. GenAI is far from faultless, however, and trust is a major issue. For example, no CFO will be willing to sign off on financial statements if the finance team does not know how to check the GenAI outputs they are based on. Explainability is another challenge. If a certain system is being used to produce statements or reports, the CFO must be able to explain how it works and how it comes to its conclusions. And therein lies another issue: inconsistency. At present, you can ask GenAI the same question 50 times and get a different answer on each occasion. That may be acceptable for marketing content, but it certainly will not work for financial statements and forecasts, where trust and data integrity are of utmost importance. Fortunately, GenAI developers and organisations integrating the technology into other software systems are addressing these issues and the technology is improving at a rapid pace, but it is still not at a stage where it can be fully relied on. Humans will need to be always kept in the loop to verify the outputs and ensure that the systems are not hallucinating or being creative when they should not be. The use of GenAI by CFOs and finance functions to support strategic decision-making in their organisations will soon be a competitive differentiator. This means that even if they are not currently using GenAI in their organisations, CFOs need to experiment with it and understand how it works, what it can do, and the value it can bring to the business. More importantly, they need to help instil an experimental culture within the organisation where employees at all levels are encouraged to bring forward ideas for use cases without fearing repercussions for aborted pilots or lack of investment. CFOs who fully embrace this early-stage trial and error will ensure that they are not left behind when the technology evolves to a point where it can be trusted, is consistent in its outputs and is fully explainable. Transforming finance functions GenAI has the potential to transform the way finance functions operate and the strategic insights and guidance that CFOs can bring to their organisations. To realise that potential CFOs will need to understand the business needs across different departments, gain access to data from across the organisation, develop basic data science skills, and perhaps experiment with the technology to understand how it works, how to interact with it and how it can deliver value to the business. Vickie Wall is Financial Accounting Advisory Services Leader at EY

Feeling uninspired after the summer? Ed Heffernan explores internal moves, smarter job transitions, and fresh opportunities without sacrificing long-term growth Turning off your out-of-office message after the holidays is simply depressing! The first day back is always difficult, but if the first week and the first month aren’t much better, then maybe a salary increase, a new job, or a new career might help. Most industries have their intensely busy times, and it’s unsurprising to learn that post-holidays – namely the New Year and Back-to-School September – are the hot spots for recruitment firms. It could be the downtime we have to think about our career choices, or the difficulty getting back into a work routine. Either way, the desire to do something different, more rewarding or better paid, is certainly an itch worth scratching. So, where to start? A complete career change is absolutely a possibility. There are some things you need to think about first, however. Career status The earlier you are in your career, the easier it is to change. An undergrad in science working in a lab, who wants to get into marketing, or a sales manager who likes the look of logistics – those career moves are relatively easy to make. Further up the chain, however, a complete change of direction will likely mean sacrificing some salary. If you are changing careers, there's an element of starting again, so you are probably going to get paid less. If you are 20 years into a role as a Chief Financial Officer, for example, and want to move into a creative area, you will need to make a financial sacrifice, certainly in the short term. You must be realistic, but it is also important to remember that the more value you create, the more you get compensated for the value of your time. No big bang Good advice is that a career change doesn't have to be a ‘big bang.’ Internal moves within organisations, or different functions, are more doable than external moves. And, if a business has multiple sites, a transfer to a new location will test whether the grass is actually greener on the other side! Take someone working as head of a supply chain in a big business or multinational who wants to transfer to the sales and marketing side of the business. This represents a more feasible move for both employer and employee. To start, take on some responsibilities linked to the side of the business you are interested in, or work on cross-functional projects that put you in closer proximity to those teams. Look for an internal secondment to a new team so your career change can be subtle. This will also help preserve income. Plus, if opportunities or experience within the new function are not all that great, there is scope for a return to your original department, bringing an even broader understanding back with you. Most employers these days don’t want to lose talent, so will generally work with employees on training or evolving their role. Job hunt homework Something as important as a career change demands homework. Don’t just take job descriptions as read. Job titles mean nothing without context and, at times, company recruitment ads are a list of duties and some company details. The context of the markets the business is in, the degree of activity around each duty demanded by the role, and the supports in place, are crucial to an accurate job representation. Do your own job interview. Ask yourself exactly what it is you think will be better and more rewarding about a new or different role, or even a new sector. If it does come to interviewing for a new job, this type of preparation will stand to you. For a hiring organisation, someone advanced in a long-term career who suddenly wants to shift gears must have some good reasons, and they must be able to demonstrate a real commitment and reasonable preparation. Ed Heffernan is Managing Partner at Barden

We don’t need more purpose statements, we need more purposeful leadership, writes Fiona English In a world awash with purpose statements, how can you ensure you or your organisation have the impact you desire? Many leaders and organisations begin with the wrong question when it comes to purpose. They focus on "what" they will do rather than "who" they will become. Purpose is an expression of identity, derived from who we are rather than simply what we do. It is not a thing you find. It is about the person you choose to become. A purposeful leader asks themselves how they will use their position, power and the resources available to have a greater impact on others and society. Purpose is uniquely human When it comes to purpose, we are often cynical. We believe ‘purpose’ is esoteric or a nice statement to have. But what makes purpose real is you. It cannot be outsourced to the organisation you lead or work for by simply crafting a ‘purpose statement.’ While any business can have a purpose statement, it is only leaders and employees who can breathe life into that statement through their choices. Purpose is real clarity on what the team members, team and organisation has committed to and the choices made as a result. Purpose is a choice Purpose, at its core, is about choice. It asks us what matters to us – as people, as citizens of our world, as leaders and employees of organisations. Being a purposeful leader asks you to clarify what drives your choices and how they reflect who you are, your belief system, what matters to you. It is those choices that have the power to amplify the impact you or your organisation can have in the world. Purpose is disruptive One of the least glorified aspects of purpose is that it is challenging. To have greater purpose in your life and work or to lead in a purposeful way in your business, you must first be willing to disrupt yourself and change how you are currently showing up in the world. To have purpose, leadership and organisations must stop talking about it and start embodying it. Take the statement you have crafted around the purpose of your organisation and ground it into reality through your choices. Purpose requires courage Purpose cannot exist without courage. Often, when we struggle with our purpose in life or work, it is not because we don’t know how to be more purposeful. We just don’t always like the consequences that come with being so. We say we want more authenticity, greater equality in the world or solutions to the climate crisis. However, what we really want is all these things without sacrifice. When it comes to many of the changes we need to see in the world today, our problem is not an absence of ideas or intellect but an absence of courage. We make purpose real It takes real leadership to define and execute purpose in life, work or business with integrity. We have to invest the time to get clear on who we are, who we wish to become, the impact we wish to have and the choices we are willing to make as a result. Only then can any purpose statement become reality. Purpose is not real until we choose it to be. Fiona English is a keynote speaker, thought leader and coach. www.fiona-english.com

Ethical conduct is not a “nice to have” for accountants, but a crucial professional competence, writes Professor Patricia Barker  Global Ethics Day will be celebrated on 16 October 2024. This initiative, founded by the Carnegie Council for International Affairs, is now in its eleventh year. This year’s theme is “Ethics Empowered”. The Consultative Committee of Accountancy Bodies (CCAB) Ethics Group believes it is important to reflect on the significance of ethics for the accountancy profession and to emphasise three key messages: 1. Empower through education and self-reflection Ethics should be viewed as a professional competence. This requires accountants to undertake regular CPD on ethics, self-reflection activity, and to familiarise themselves with frameworks to guide their ethical decision-making. 2. Be true to ethical values and model ethical behaviour Compliance should not be confused with ethical behaviour. 3. Follow your North Star Accountants should always use the five fundamental ethics principles, as set out by organisations such as Chartered Accountants Ireland, as well as the duty to act in the public interest as their constant navigation tool when facing an ethical dilemma. Ethics vs compliance In every sphere of professional activity, accountants, and the clients they work for, must deal with an ever-increasing tide of regulation. In addition to financial reporting and auditing standards – and alongside legislation governing taxation, anti-money laundering and sanctions – the profession is expected to be familiar with legislation, standards and regulations ranging from those relating to employment, competition and procurement to sustainability, data protection and corporate governance. This is the price to pay for being a trusted advisor. So great is the volume and weight of regulation today, however, that it pervades much of the profession’s decision-making and innovation.  More than just compliance It is important that accountants do not become complacent and that they remember that professional ethics is about much more than mere compliance. Indeed, they may be so preoccupied with gathering evidence of compliance, that they fail to reflect properly on the reality of the rightness and wrongness of actions and the decisions they take.  Dilemmas facing accountants can be regarded, broadly, as either regulatory or judgemental in nature.  Law and regulation provide the framework for ensuring compliance with regulatory issues.  As the body of rules and regulations grows unevenly across different jurisdictions, however, opportunities for regulatory arbitrage increase, potentially distorting markets. More importantly, not all dilemmas can be dealt with directly by a clear regulation. Ethical issues that fall outside clear rules must be judged in the context of the value framework the individual professional believes in.  This framework is provided by the ethical education and self-awareness of the accountant, supported by a Professional Code of Ethics and experiential/reflective learning.  The role of personal values In determining how to deal with any ethical dilemma, the accountant will be strongly influenced by their individual moral perspective. When considering whether a particular action is potentially good or bad, some accountants may prefer to emphasise the ultimate outcome, taking the view that the end will justify the means.  Others may believe that the action itself must be judged, rather than its consequences. Still others may believe that humans are inherently self-centred and competitive, and will make decisions in their own interests, albeit complying with the law.  Ethical behaviour, therefore, requires that each professional accountant undertakes detailed self-reflection to fully understand how their values influence their approach to decision-making and how they are likely to react under pressure. When there is a conflict between our conscience, our ethical reasoning, the requirements of our workplace and our limited ability to influence outcomes, cognitive dissonance is inevitable. Ethical self-reflection and close scrutiny of the guidance provided by the Code of Ethics for Professional Accountants can help the professional accountant forge a trajectory to ethical decision-making when under pressure. Importance of Code of Ethics for professional accountants Professional accountants who are members of one of the bodies comprising the CCAB must adhere to the Code of Ethics for Professional Accountants. This includes the International Independence Standards issued by the International Ethics Standards Board for Accountants (the Code). Perhaps inevitably, to accommodate the increase in regulation and standards, the Code has expanded exponentially in recent years. However, it is important to remember that the application material and more detailed sections of the Code are simply an expansion of the five fundamental ethics principles. Professional accountants should be guided not merely by the terms but also by the spirit of the Code. These principles, together with the overarching professional duty to act in the public interest set out in the Code, are broad enough to deal with most of the challenges accountants face in their daily professional lives – particularly when combined with informed ethical self-reflection. This article was written by Professor Patricia Barker, FCA, Lecturer of Business Ethics at Dublin City University, on behalf of the Consultative Committee of Accountancy Bodies

Budget 2025 needs to tackle rising business costs, tax complexity and housing shortages to enhance Ireland’s global competitiveness and support domestic and foreign enterprises, writes Tom Woods On 1 October, Budget 2025 should prioritise addressing key competitive challenges in the Irish economy, such as attracting, supporting and scaling Irish and foreign businesses, as well as tackling rising employment costs, international talent competition, and affordable housing availability. Tax simplification Ireland is facing a rapidly changing global tax environment, and the outcome of the US elections could significantly impact this environment and Ireland's attractiveness as an investment location. US tax measures designed to lower the US corporate tax rate to one more comparable with OECD peers and to protect the US tax base are scheduled to expire at the end of 2025. Despite this uncertainty, Ireland has a unique chance to present itself as a stable and secure destination for FDI. It is vital the opportunity is taken in Budget 2025 to introduce measures that will strengthen Ireland's competitive edge and attractiveness for inward investment. Ireland needs a broad and flexible participation regime that will support it as an international holding company location. We have called for introducing a participation exemption for foreign dividends to complement the participation exemption in place for capital gains. A branch exemption should also be introduced. Simplification of the tax code needs to be a priority in Budget 2025 to support enterprise and entrepreneurship. According to the KPMG Enterprise Barometer 2024, six in ten domestic businesses and entrepreneurs are concerned about the administrative complexity associated with the Irish tax system, particularly for smaller enterprises and entrepreneurs. Our pre-budget submission calls for the establishment of an Office for Tax Simplification to review the tax code, remove duplication, and simplify the system. By doing so, we can drive reform of overly complex tax rules that are adding to the cost of doing business and compromising competitiveness. This is particularly important now that the 12.5 percent corporation tax rate is less of a competitive advantage. SME investment SMEs employ more than 1.2 million people and are critical to our economic success, so they need access to capital and talent to develop and grow their businesses. Enhancements to the Key Employee Engagement Programme (KEEP) and the Special Assignee Relief Programme (SARP), as well as introducing a super deduction for payroll costs of highly skilled technology workers would help level the playing field for SMEs competing with multinational corporations in a tight labour market. Budget 2025 could also incentivise investment in SMEs by simplifying the Employment Investment Incentive Scheme (EIIS) and enhancing Capital Gains Tax (CGT) Entrepreneur's Relief. It is also critical to reverse the changes made to the CGT Retirement Relief in the last Finance Act. The availability of CGT retirement relief is vital to the development of multi-generational family-owned businesses and farms. These businesses and farms are the bedrock of the Irish economy, employing millions. Last year's changes will operate as a barrier to the transfer of Irish businesses and farms to the next generation. Employment cost reduction Ireland's high cost of employment has become a real concern for domestic businesses and foreign investors. Budget 2025 should introduce measures to reduce the cost of employment. Ireland needs a personal tax regime that attracts and retains skilled individuals. This is important for Irish and foreign-owned companies assessing Ireland as an investment location. The entry point to Ireland's marginal income tax rate is uncompetitive compared to many other jurisdictions, making it difficult to attract talent and highly skilled workers. We recommend raising the point at which the marginal rate applies to €50,000. We also recommend the introduction of an earnings cap of €75,000 on Employee PRSI and €100,000 on Employer PRSI, similar to social security caps in other countries, increasing workers' take-home pay, helping employers manage employment costs and supporting businesses growing and developing talent. Housing crisis The housing crisis is adversely impacting Ireland's attractiveness for investment. According to new data from the Central Statistics Office, 69,000 people emigrated from the Republic of Ireland in the 12 months to April 2024, the highest level of emigration since 2015. There were also significant inflows, but this is a missed opportunity to keep talented people in the Irish labour market. Several budgetary measures could be introduced to increase the housing supply, including incentivising employers to build and provide residential accommodation to employees with a corresponding benefit-in-kind (BIK) exemption for employees earning less than €50,000. Reintroducing a targeted and controlled form of Section 23 relief could also encourage the conversion of properties above retail units to residential use and encourage individuals to finance the development of new residential units for letting. Green technology Our ambitious climate goals will undoubtedly present challenges and opportunities for individuals, communities, and businesses. Tax policy could be used as an effective tool to encourage innovation in green technologies to help us meet these targets. The Government has several challenges to address, but strong exchequer returns should put the Government in a good position to deliver on a budgetary package of €1.8 billion in additional spending and €1.4 billion in tax measures as set out in the Summer Economic Statement.  Tom Woods is head of tax at KPMG in Ireland

Selling a business is a complex process and accountants have a crucial role to play in ensuring their clients achieve the optimal financial outcome. Niall Gaughan explains how As the financial landscape continues to evolve, accountants in Ireland are finding themselves at the forefront in helping to guide clients through the intricate process of selling a business. Beyond the immediate considerations of the sale itself, the post-sale period is critical to ensuring optimal financial outcomes. In this article, we explore the key elements accountants should consider when advising clients on selling a business, focusing on the importance of securing future financial stability, fostering strategic partnerships and succession planning. Anticipating the post-sale landscape Accountants must highlight the importance of proactive planning before a sale. Understanding the details of the financial landscape post-sale allows business owners to make informed choices that can have a significant impact on tax responsibilities, wealth preservation and overall financial health. This can help to ensure that clients are well-equipped to navigate any complexities that may emerge after the deal closure. Securing future financial stability Securing future financial stability post-sale is a critical consideration for both business owners and their advisors. Central to this endeavour is expert tax advice. Accountants play a pivotal role in guiding clients towards understanding the tax implications associated with a business sale. By carefully examining available reliefs, exemptions and allowances, accountants can help maximise after-tax returns, providing a solid foundation for the future. For instance, a comprehensive understanding of various reliefs can lead to substantial tax savings, laying the groundwork for securing the financial future of both the seller and the business. Fostering strategic partnerships When navigating the complexities of a business sale, fostering strategic partnerships is crucial. Accountants must pay careful attention to the strategic structuring of the sale, assessing alternatives such as selling shares or assets with a keen eye on the potential implications for both buyers and sellers. By leveraging their expertise and collaborating closely with other advisors, accountants can help clients select a structure that not only aligns with their financial goals but also fosters long-term strategic partnerships. These partnerships are crucial because they can provide significant tax advantages and facilitate a seamless transition process. Moreover, by aligning the interests of all parties involved, strategic partnerships lay a strong foundation for ongoing collaboration, which is essential for future growth and success. Securing the future beyond the sale Post-sale success is not solely contingent on immediate financial gains. Accountants should advocate for robust succession planning, especially within family businesses, considering factors such as family dynamics, business continuity and long-term financial objectives. By engaging in proactive succession planning, clients can safeguard their wealth, ensuring its sustained growth and the realisation of personal and family goals. This approach not only secures the financial future of the business but also aligns with the long-term vision and values of the family, setting the stage for continued success across generations. A strategic partnership for wealth management In the post-sale phase, a private banker with specialised competencies can support the unique requirements of handling the proceeds from a business sale. The business owner’s accountant can play a key role in selecting a private banker suited to their unique needs. Their competencies should include: Wealth preservation expertise: A private banker who understands wealth preservation strategies can help the client build a lasting legacy. Investment strategy: Competent private bankers should be adept at devising investment strategies aligned with the client's risk tolerance and financial goals, ensuring the continued growth of their wealth. Diversification and risk management: A private banker should be able to assist clients in diversifying their investment portfolio, mitigating risks associated with concentrated assets and optimising long-term returns. Personalised service: The ability to craft personalised financial plans that encompass the client's lifestyle, philanthropic aspirations and intergenerational wealth transfer, is a key competency for a private banker in this context. Clients are now keen to understand more about philanthropic options and sustainability. A good private banker should be able to facilitate access to deep knowledge and subject matter experts in these areas. Clients need a secure financial institution with a strong credit rating that offers immediate returns on their funds post-sale. Confidentiality and direct access to a private banker can help, as they will have access to expertise in financial markets and the ability to educate clients who are often experts in their fields – but not necessarily in financial management. Ensuring post-sale success The role of the accountant supporting a client through a business sale extends beyond the realms of financial statements and tax calculations. By proactively addressing the considerations outlined – expert tax advice, strategic structuring, succession planning and selecting the right private banker – accountants can guide their clients towards post-sale financial triumph. Niall Gaughan is a Director with Barclays Wealth in Dublin

Northern Ireland's economy faces a pressing skills gap, impacting productivity and growth. Collaborative efforts between business, government, and education are crucial to addressing this workforce challenge, writes Christine Patton Despite the good news stories of a strong jobs market and low unemployment rate across the Northern Ireland economy, attention has turned to skills and the skills gap challenge faced by many sectors and employers across the region. Skills are generally broken down into three categories: Basic skills – those that everyone needs, including literacy, numeracy and basic digital skills. Essential skills – those which are transferable and applicable to almost any job, such as communication and teamwork. Technical skills – those which are specific to a sector or role and are not easily transferred.   But how important are skills to Northern Ireland’s economy? Arguably, there is nothing more important for our economic success.  For an economy to thrive, it needs a sufficiently skilled workforce across all three of the above categories. It also needs a high level of productivity – something Northern Ireland has struggled with, consistently falling behind that of its UK counterparts. Education and skills development are key drivers of productivity. Increased well-being also contributes to local economic development, with skills significantly correlated with life outcomes.   However, there are challenges to achieving a sufficiently skilled workforce. Given the rate of acceleration of new technologies, sustainability targets, an ageing population, and the growing emphasis on placemaking, developing the skills pipeline and closing the skills gap will not be an easy task. For employers specifically, it can be a struggle to attract the right people with the skill sets required. The 2024 Business Barometer report published by Open University in partnership with the British Chambers of Commerce, has found that nearly half (44%) of organisations in Northern Ireland are still reporting worrying skills shortages. In recognition of the skills imbalance and the challenges employers face, the Institute of Directors, in partnership with Grant Thornton, MCS Group and SONI, established a Skills and Workplace Forum to identify key skills issues. To promote prosperity and flexibility to respond to future opportunities, the report made five recommendations: Reduce economic inactivity – Northern Ireland must widen our labour market, increasing our talent pool to better support employers to build diverse, more successful teams. Greater engagement with schools – Northern Ireland needs to improve the targeting, timeliness, effectiveness and efficiency of all age career guidance. We need new ways of informing and motivating young people and adults about careers and skills for a lifetime of work. Improve access and widen participation – We need to change how we think about learning and skills and be responsive to all young people’s circumstances as well as new and emerging technologies and trends. Make childcare work for everyone – The Northern Ireland Executive needs to provide specific support to community-based social enterprises (such as women’s centres) to scale up sustainably, enabling them to provide affordable childcare solutions to parents in Northern Ireland. Change access to the apprenticeship levy – We need to change how the apprenticeship levy operates locally so it’s ringfenced for labour market partnerships, skills and lifelong learning (similar to Skillnet). As we look towards the future of the Northern Ireland economy, skills shortages must remain to the fore. To make progress in closing the skills gap, there must be a genuine partnership between business, government, education, and training providers. All parties must play a key role in stimulating the local skills system through strong collaboration and engagement to work towards a better future and, as the Skills Workforce Forum report put it, ‘realise the full potential of our workforce, which is our greatest asset’. Christine Patton is Manager of Economic Advisory at Grant Thornton NI

The Charities (Amendment) Act 2024 modernises Ireland's charity regulations, enhancing trustee accountability, financial transparency, and regulatory oversight, ensuring a more trustworthy, well-governed sector, writes Keith Doyle The Charities (Amendment) Act 2024 brings in a variety of changes aimed at modernising the regulatory framework for charities in Ireland. These updates place a strong focus on improving governance, transparency, and accountability across the sector. Key reforms for charity trustees One of the most notable changes introduced by the Act relates to the responsibilities and obligations of charity trustees. Trustees are seen as central figures within any charity, and the new regulations place greater emphasis on ensuring they understand their duties. The Act formalises the expectations for trustees, including the requirement to act in the best interest of the charity, maintain proper oversight of the charity's activities, and avoid conflicts of interest. Additionally, trustees are required to have a clear understanding of their charity’s financial situation, ensuring funds are used appropriately to achieve the charity's objectives. To support this, the Charities Regulator will now have expanded powers to investigate trustee conduct and hold them accountable if they fail to meet their obligations. In cases of serious misconduct, trustees may face removal from their position, fines, or even prosecution. This shift is aimed at protecting the reputation of the sector by ensuring all charities are managed to a high standard. Financial reporting and thresholds The Act also updates the financial thresholds for charities. Smaller charities will now have less stringent reporting requirements, while larger organisations will need to meet more comprehensive financial reporting standards. The purpose of these changes is to balance the regulatory burden between smaller and larger charities while still maintaining transparency. Under these new guidelines, all charities must ensure they keep accurate financial records and submit annual reports to the Charities Regulator. In line with this, there will be greater scrutiny of how charities use their funds, particularly for larger organisations. The goal is to ensure that funds raised from the public are spent appropriately and in accordance with the charity's objectives. Mismanagement of funds, even in smaller charities, will be subject to investigation and penalties. Charities should review the amended requirements for financial reporting and determine where they fall on the new thresholds for reporting. For instance, the Amendment Act has raised the threshold requiring that the accounts of a charitable organisation be audited from €500,000 to €1,000,000. On the other hand, while the previous Act exempted a charitable organisation that is a company from this audit requirement, this exemption has now been removed. Enhanced role of the Charities Regulator The Charities Regulator plays a central role in overseeing the charitable sector, and the new Act significantly enhances its powers. The regulator will now have broader authority to conduct investigations, inspect records, and take enforcement actions where necessary. This includes the ability to freeze bank accounts, remove trustees, and impose sanctions on charities that fail to comply with the new regulations. The Act also introduces provisions for the regulator to provide more guidance and support to charities, helping them navigate the new compliance landscape. These new powers and supports are intended to strengthen the sector by encouraging best practices and ensuring public confidence in how charities operate. Streamlining administrative processes Another focus of the Act is to simplify the administrative burden on charities with the aim to make it easier for organisations to comply with regulations without being overwhelmed by paperwork or unnecessary procedures. For example, the Act introduces measures to simplify the registration process for new charities, as well as changes to how charities can update their details or amend their governing documents. By streamlining these processes, the hope is that charities can focus more on their core mission of providing services and less on administrative tasks. However, these simplified processes are balanced by the increased expectations for accountability and governance. Will there be guidance for charities to assist with good governance? The Charities Regulatory Authority (the Authority) has welcomed the introduction of the new legislation and has announced plans to develop guidance for charity trustees and those involved in managing or advising charities as the changes being introduced under the Act are commenced. While any such guidelines or codes of conduct developed by the Authority will not have the same effect as legislation, the Act provides that charities and charity trustees shall have regard to them. It is, therefore, clear that it will be expected of charities that any such guidelines or codes of conduct will be taken into account and adhered to by charity trustees and this is something which they must bear in mind when ensuring that they meet their annual governance code compliance requirements. Trustworthy charitable sector Overall, the Charities (Amendment) Act 2024 introduces a range of reforms that will have a significant impact on how charities operate in Ireland. By strengthening governance, enhancing transparency, and expanding the powers of the Charities Regulator, the Act aims to foster a more accountable and trustworthy charitable sector. These changes will ultimately benefit the public, donors, and the charities themselves by ensuring that charitable organisations are held to the highest standards of governance and compliance. Keith Doyle is Audit & Assurance Partner at Azets

Blurred lines between WhatsApp use for personal communication, interaction with colleagues and business purposes can create serious risk for organisations and employers. TerriSue Cosgrove explains why Of late, WhatsApp has had a starring role in dismissals that end up in the Labour Court, official enquiries across public and private sectors and even criminal proceedings. From communication deemed unprofessional or unfortunate that damages reputations, to comments or disclosures that merit court or employment law proceedings, many are unaware of the extent to which WhatsApp messages can be risky in the workplace. From an employment law perspective, employers should be aware that they may be found vicariously liable for a claim where an employee says something problematic – for example, discriminatory or defamatory -- in a WhatsApp message. Lately, we have seen many cases coming before the Workplace Relations Commission (WRC) involving inappropriate messaging, with serious consequences, including job loss. In these cases, businesses are typically held responsible and may face WRC fines. Privacy Often when employees use WhatsApp, either on their personal phone or a business device, they are unaware their messages can be accessed and may be disclosed to judge their conduct at work.  Any message in connection with work duties, or within a WhatsApp group – even one only sometimes used for legitimate work purposes – may create liability for either party. There is some ambiguity, and employees can reasonably expect privacy, but where WhatsApp is commonly used for work purposes, not all messages will be deemed private if contentious issues arise. While messages may be encrypted, employees must remember that all written, video and audio communication can be recorded and shared. We have a misplaced belief that instant messaging disappears without a paper trail. With any work gossip shared digitally, however, it takes only a second for someone to take a screenshot to send to a line manager. And, if you use WhatsApp on a company phone, your employer can legitimately access files you send, via device management software, network monitoring or company wi-fi. Policy The practical importance of having a social media and/or electronic communications policy in the workplace cannot be underestimated. Controls to manage the online security risks of a Bring Your Own Device (BYOD) situation are also important. The company’s privacy or IT policy should inform employees about the extent to which their company devices are monitored, and that all monitoring is undertaken in line with internal policy and data protection principles.  It should also ask staff not to use private communication channels for work purposes, both to protect sensitive company data and employees themselves. A code of practice on the Right to Disconnect policy legislation should be adhered to. Continuous messaging on platforms like WhatsApp, especially outside of working hours, can prevent employees from fully disconnecting, leading to stress and burnout. Using personal WhatsApp for business, especially on public wi-fi, makes companies vulnerable to loss of business-related data on employee-owned devices. Phones must be appropriately protected with encryption, security updates, auto-screen lock and password protection.  Staff might also make unauthorised disclosures of confidential company or client information. Whether deliberately or inadvertently, this can damage the business directly, or allow client claims for breach of confidence or data. Again, this highlights the need for a strong communication policy. It is essential to not only have a policy but also train employees regularly on its use. Clear policies, robust procedures and staff training on appropriate communication and behaviour will minimise risks. This should include notifying employees that WhatsApp groups, and their use, can be monitored on work phones and that misuse can result in disciplinary action – even if the use is not specifically created or sanctioned by the employer. Own it If an employer actively encourages or allows employees to use social media as a mechanism to store business contacts, they must ensure they have control over how this information is used, especially if the employee quits work. Where an app or site is used primarily for business purposes, the employer has a stronger case in arguing ownership of it. Policy documents can make clear statements that the employer owns a social media account, and/or the data or intellectual content on it, as well as the monitoring in place to protect the legitimate interests of the business, such as client confidentiality and reputation. Companies rarely have an idea of the WhatsApp groups in operation in their organisation, or who has access to them, and 'profiles' are often just a mobile phone number. It is likely that former employees, contractors or customers may have ongoing access to business information that they shouldn’t. Employers must realise they cannot revoke access to business information once it is on WhatsApp, as data is stored on individual phones, rather than centrally. And, if employees leave, they still have company information, including potentially sensitive data, and there’s little an employer can do about it. Michael O'Connor of NexGen Cyber says it is essential that companies regularly review digital assets, assess their security controls and implement measures to protect them. This not only safeguards their assets, but also demonstrates the security protocols in place to employees, and reassures clients and business associates. Such processes ensure data is protected and clearly illustrates its value and the potential repercussions in the event that a complaint is made. TerriSue Cosgrove is Managing Director at The HR Head

As a new Labour government takes shape in Britain, Irish businesses are bracing for the potential ripple effects across key sectors, writes Vivian Nathan As Britain transitions to a new Labour government, Irish businesses will closely monitor the potential impacts, as we are its closest neighbour. Sectors such as construction, hospitality and retail may feel the ripple effects of Labour’s policies, especially regarding employment rights and consumer spending power, which are closely linked to broader economic conditions. Construction sector The construction sector in Ireland is paying close attention to developments in Britain, given the number of Irish construction companies operating in both jurisdictions. Baker Tilly is currently working with several UK companies interested in Irish infrastructure spend, particularly in the rail sector. Additionally, we have seen increased inquiries from UK labour companies looking to serve the Irish market, demonstrating a growing interest in cross-border opportunities. The UK has been hampered by delays in decision-making before the General Election and the collapse of several construction contractors. The cancellation of large parts of the High Speed 2 railway project has further motivated UK contractors to seek opportunities in Ireland, especially with the Irish Government’s commitment to significant infrastructure spending. Meanwhile, the Irish housing market remains strong, with demand continuing to outstrip supply. Nevertheless, local issues around capacity and planning present ongoing challenges for the construction sector in Ireland. Irish-origin construction businesses are actively tendering for work across the island, further highlighting the cross-border interest. Hospitality and retail sectors Ireland’s hospitality and retail sectors have faced significant challenges since the COVID-19 pandemic. Despite seeing increased demand, the hospitality industry has recently been rocked by rising costs, such as those experienced by Dylan McGrath and the Press Up Group. These sectors are particularly sensitive to broader economic factors like inflation and interest rates, both of which are influenced by the economic situation in Britain. Labour’s focus on enhancing employment rights in Britain, including potential increases in the National Minimum Wage and National Living Wage, could indirectly affect Irish businesses, especially those operating in both jurisdictions. The proposed Employment Rights Bill, which aims to ‘make work pay’, may introduce measures such as banning zero-hour contracts and extending parental and sick leave. These changes could increase operational costs for businesses, potentially leading to higher consumer prices, particularly in the North of Ireland, where the border economy is acutely sensitive to changes in British policy. Adapting for the future The change in government in Britain brings with it a level of economic uncertainty that is of particular concern to Ireland, given our close ties, shared border, and the fact that some Irish and UK businesses operate in both jurisdictions. While it remains to be seen if the UK Labour government will adopt a ‘tax and spend’ approach, particularly in changes to the non-domiciled regime that could make Ireland a more attractive base, the full implications of Labour’s policies remain unclear. What is clear is that key sectors in Ireland – particularly construction, hospitality, and retail – will need to stay informed and be prepared. The changes in Britain could have significant consequences for Ireland, making it essential for Irish businesses to monitor developments and adapt accordingly. Vivian Nathan is Chief Operating Officer at Baker Tilly

New technologies will play an essential role in supporting finance functions to become value-adding business partners for organisations, writes Vickie Wall The application of technology to automate routine and low-value tasks has been a priority for CFOs for quite some time. Many finance leaders looking beyond automation are considering the implementation of autonomous systems that can carry out tasks but make or at least suggest decisions without the necessity for human intervention. However, among the more surprising findings of the EY Ireland CFO Survey 2024, 47 percent of respondents cited manual processes and controls as an area where time is used least efficiently in the finance function. This suggests that a sizeable number of Irish organisations still have some way to go in their automation efforts and that autonomous finance is probably not even on the horizon for them. No organisation, however, wilfully persists with inefficient and costly systems that are readily amenable to automation. The reality is that organisations face numerous obstacles when it comes to automation processes, not least of them skills deficits and costs. Eye on saving time and cost The Irish business landscape is extremely varied, ranging from Irish PLCs overseeing vast global operations and subsidiaries of global multinationals that are carrying out a range of finance and business services in Global Business Service centres, to both large and mid-sized private organisations with often relatively small finance teams and scarce technology resources. It is, therefore, quite probable that organisations at the smaller end of that spectrum will be those with the most significant automation challenges. Interestingly, recent advances in technology mean that autonomous finance may offer a means of leapfrogging obstacles. Autonomous finance systems use advanced technologies such as machine learning, artificial intelligence (AI) and big data analytics to continuously learn, adapt, predict, and have the capability to operate on their own. Up until quite recently, those technologies have been prohibitively expensive for most organisations and the skills to use them effectively have been rare and in high demand. The advent of generative AI (GenAI) and the near-simultaneous retrenchment in the tech sector has brought both the technology and the ability to use it within reach of just about all organisations, regardless of size. Very importantly, low-cost and no-cost GenAI tools can help to fill skills gaps in finance functions and accelerate automation efforts or restart stalled projects. Their natural language capabilities allow them to write the code for programmes and tools to carry out tasks and execute processes based on simple instructions from a human with little or no technology expertise. This can be applied immediately to time-consuming, recurring processes like month- and year-end close. In most cases, these are highly manual processes that deal with huge numbers of journal postings and have a high potential for human error. Automating them will both save time and effort and reduce costly errors. Seven-step roadmap to adoption Finance automation is no longer an option; it is a necessity. That will also be the case for autonomous finance in the not-too-distant future. The pressure on finance functions will simply be too great to sustain without the support of automated and autonomous processes. The only remaining question is how to progress the adoption and implementation journey. There are seven steps to successfully embrace automated and autonomous finance. Understand the current process Identify those tasks and processes that take the most time for the least reward, document them and establish if they make good automation use cases. Set clear goals Decide what you hope to achieve from automation; reduced manual errors, faster processes, reduced costs, improved reporting or better resource allocation. Choose the right tools Evaluate different finance automation tools available in the market. Some off-the-shelf tools from established providers offer clear benefits. Avail of free trials where possible to assess the claims made by the provider. Work with the IT function to ensure activities and strategies align with one another. Use intelligent bots The concept of AI as an assistant to augment human capability should be embraced. Rather than focusing solely on areas where human activity can be replaced by machines, the exploration of the use of technology to assist humans in their work should be given at least equal priority. Start small It is best to automate small parts of the accounting cycle at the beginning to build confidence in the new tools and solutions. This will help gain buy-in from within the finance function as well as the C-suite level to generate savings to fund future projects. Encourage innovation If finance teams are encouraged to dabble in the technology and experiment with automation in small projects, it could help build confidence and accelerate adoption. Allowing individuals to experiment can uncover new use cases and unlock additional value. Train the team While GenAI-powered tools will make up for many existing skills gaps, finance teams will still need to be trained on how to use the new tools to optimise their value. This will support the change management process required for the adoption of any new technology. Accelerate the journey Finance functions need to accelerate their automation journeys in the face of a rapidly increasing burden brought about by a combination of new regulations and increased demands from the business. GenAI and other new technologies have the power to support automation as well as assist in the adoption of high-value-adding autonomous finance processes. Vickie Wall is Financial Accounting Advisory Services Leader at EY

The EU’s Nature Restoration Law mandates the restoration of 20 percent of land and sea by 2030. Irish businesses must assess their reliance on nature for resilience, writes David McGee The formal adoption of the European Union (EU) Nature Restoration Law (NRL) by the EU Council in June 2024 marks another victory for nature. Importantly, it urges Irish businesses to understand their reliance on and impact on nature and biodiversity. Understanding what legislation like this could mean for long-term business resilience is essential. What is the importance of the Nature Restoration Law? The NRL is the first continent-wide, comprehensive law of its kind. Under the NRL, EU countries must implement measures to restore at least 20 percent of the EU’s land and sea areas by 2030 and all ecosystems in need of restoration by 2050. It sets specific legally binding targets and obligations for nature restoration across various ecosystems – from terrestrial to marine, freshwater and urban environments. Member states must submit national restoration plans to the European Commission by 2026, detailing how they will achieve these targets and how they will monitor and report on their progress. New business opportunities for ecosystem resilience Businesses often struggle to connect their operations directly with nature and biodiversity. However, a thorough understanding of value and supply chains reveals that reliance and impact  on nature and biodiversity are relevant for every business. The NRL may affect companies’ suppliers, customers or individual holdings directly or indirectly. The NRL and existing biodiversity reporting requirements under the Corporate Sustainability Reporting Directive (CSRD) signal to the business world that nature and biodiversity are paramount. Understanding and investing in nature and biodiversity can also open up new opportunities. The NRL aims to support the EU’s overarching climate mitigation and adaptation objectives while enhancing food security. Restoration efforts contribute to ecosystem resilience, which can lead to more sustainable long-term business models – especially for those heavily dependent on natural resources. Creating long-term sustainability Here are four steps ESG leaders can take to understand your company’s reliance on nature and biodiversity and ensure long-term sustainability.  1. Undertake value chain mapping: Value chain mapping is a crucial tool for understanding the ecosystem of your product or business operations. Gaining visibility of your value chain will assist in identifying where nature and biodiversity intersect and how they are integrated or relied upon throughout the value chain.  2. Evaluate and assess: Once you identify nature and biodiversity throughout the value chain, dependencies and impacts should be evaluated and assessed. Assess how natural resources (land, water, air) are utilised or relied on and how this relates to the locality of the resource. Nature and biodiversity can be highly local and unique. Where are the vulnerabilities and risks to nature from using resources in the value chain? What is the impact, and what can you do to mitigate it? Equally, where are the opportunities, or where can gains be made? 3. Data and technology: Relevant data and technology will give more certainty and enable informed decision-making by providing more accurate evaluations and assessments of the impacts and opportunities of business operations on nature and biodiversity. Leveraging non-financial sustainability reporting data, public datasets and geospatial tools will help build a comprehensive and accurate understanding of the interface between businesses, nature and biodiversity. Importantly, this will inform adequate action to reduce impact and dependencies while maximising opportunities. 4. Business strategy and risk management integration: Embed identified nature and biodiversity risks and actions into your broader business strategy and risk management. Increasingly, businesses are integrating sustainability into their wider business strategy, leading to sustained value, enabling strategic decision-making, driving accountability, maintaining compliance, and setting out how the cost to the business versus the contribution to society is managed. David McGee is ESG Leader at PwC Ireland

In 2025, DORA will impose rigorous risk management standards on EU financial entities. Shane O’Neill offers five practical steps for compliance readiness From 17 January 2025, the Digital Operational Resilience Act (DORA) applies to all financial entities operating within the European Union. This wide-reaching legislation aims to strengthen the digital operational resilience of the financial services sector. Built upon five pillars, it contains rigorous requirements for information and communication technology (ICT) risk management, incident reporting, testing, third-party risk management and information sharing. Implementing DORA’s requirements can be overwhelming, and knowing where to begin can be difficult. Below are five practical steps that firms can take to become DORA-ready. Understand the principle of proportionality Because of the diverse nature of the financial services sector, DORA employs the principle of proportionality. This challenging but critical aspect of compliance means that entities’ regulatory requirements will differ depending on their size and risk profile and the scale, nature and complexity of their business. For example, large institutions providing multiple services, such as Ireland’s three-pillar banks, must establish a fully-fledged ICT risk management framework that addresses all appropriate areas from DORA’s Level 1 and Level 2 texts. However, smaller entities, such as boutique trading firms, can avail of a simplified ICT risk management framework covering only the areas relevant to their function, services and industry. Testing requirements also differ depending on proportionality. All entities must set up a general testing programme and comply with digital testing requirements, but through industry engagement with the Central Bank of Ireland (CBI) in recent months, the indication is that only about 10–15 institutions in Ireland will initially fall within scope of the advanced threat-led penetration testing requirements laid out in Articles 26 and 27. The application of proportionality seeks to create a high standard for the sector as a whole while protecting smaller organisations from unnecessary regulatory encumbrances. Since DORA does not take a one-size-fits-all approach to compliance, institutions should begin their compliance journey with a scoping exercise to confirm the right-sized approach to meet the requirements without taking on needless regulatory burdens. Perform a holistic gap assessment DORA’s five pillars touch many components of business operations, so organisations should analyse their entire operating model to determine which groups and business functions the legislation affects. They should bring together the stakeholders from each affected area to ensure that everyone understands their role in the compliance journey. Business as usual will continue throughout the implementation timeline, and having a collaborative approach to the planning stage helps stakeholders align on DORA-related priorities and responsibilities from the get-go. When conducting the business-wide gap assessment, entities should also inspect existing processes to determine if they can be used for DORA compliance. All firms practise digital operational resilience to some extent, and with a comprehensive review, in many instances, they’ll discover that they can enhance some of their existing procedures to satisfy DORA requirements. Leveraging and improving existing procedures saves time and allows entities to focus their effort and resourcing on the areas where they’ll need to start from scratch to build practices that achieve compliance. Be strategic about remediation activities When building a remediation roadmap, entities should address the compliance areas that need the most work first. Drafting new frameworks, evaluating them against the legislation and scrutinising their effectiveness will take time. Areas with significant compliance gaps must be addressed thoroughly, and an imminent implementation deadline can create unnecessary pressure on employees. Whenever possible, businesses should align their remediation plans with existing transformation roadmaps. To remain competitive, many organisations are already executing transformation roadmaps –digital, operational, environmental, etc. These businesses should ground DORA changes within their existing plans. For instance, if a current transformation roadmap has a timeframe for updating contracts with third-party suppliers, the business should incorporate the additional contractual changes required by DORA as part of that review cycle. Document decision-making While the CBI expects firms to be as compliant as possible by 17 January 2025, it has also recognised that “the regulation of digital operational resilience is not a once-and-done exercise and that is optimal to adopt a multi-year, multifaceted perspective”. When implementing large-scale change programmes, certain business realities, such as the lengthy process for updating third-party contracts, may prevent organisations from implementing all required changes within the timeframe in place. The CBI will take such issues into account when evaluating compliance, but it has firm expectations that all entities will have established and begun work on an agreed implementation roadmap by the January deadline. Firms should, therefore, be prepared to give an account of their DORA decision-making process. Ensuring oversight and alignment through risk and compliance functions and objective review and challenge from internal audit will show the application of a holistic delivery model to meet DORA requirements. Plan to test digital operational resilience regularly DORA requires that firms test digital operational resilience regularly (with the principle of proportionality determining the frequency of the review cycle), so DORA frameworks need to stay top of mind within organisations even after implementation projects stand down next year. By increasing entity-wide awareness about maintaining digital operational resilience, businesses can help all employees understand that DORA frameworks shouldn’t exist in silos; they need to evolve alongside business practices. Any large-scale change – restructuring, operational changes, systems updates, etc. – should prompt an evaluation of the existing framework. For instance, if a firm decides to overhaul its technology systems in 2026, then the DORA framework – despite only being a year old – may need updating to ensure continued compliance and meet the evolving business model of today. Shane O'Neill is Partner in Consulting at Grant Thornton

Irish businesses in beef and forestry face challenges as new EU deforestation rules demand ‘deforestation-free’ certification, with severe penalties for non-compliance, writes Vivian Nathan Irish businesses, particularly those in the beef and forestry sectors, are set to encounter significant regulatory hurdles due to the new EU deforestation regulations. With the potential for severe penalties, the stakes have never been higher for Irish exporters. The EU Deforestation Regulation (EUDR), which will take effect on 30 December 2024, is designed to combat forest degradation by imposing strict compliance obligations on businesses trading in specific goods with the EU.   For Ireland, this means that companies exporting beef products, wood, and other related commodities will need to demonstrate that their products are ‘deforestation-free’. This regulation imposes stringent requirements on Irish businesses, particularly those in the beef and forestry sectors. Products such as  beef and processed beef items, and wood products must be certified as ‘deforestation-free’. This certification means they must not have been produced on land deforested after 31 December  2020. Failure to comply could result in severe penalties, including fines, confiscation of goods, and exclusion from public procurement opportunities. The impact on Ireland is significant due to its strong agricultural and forestry sectors. Farmers and businesses involved in beef production, wood processing, and other related industries will need to undertake rigorous due diligence to meet these new standards. This includes gathering geolocation data and other documentation to prove compliance. The new regulations represent a significant shift for Irish exporters, especially those in the beef and forestry industries. The penalties for non-compliance could severely impact businesses that do not take immediate action. Beef and processed beef products Items such as steaks, minced beef, liver, and canned luncheon meat must now be proven to come from sources that are not contributing to deforestation. Given Ireland’s significant beef export market, this regulation could place additional pressure on farmers and processors to ensure compliance. Forestry and wood products Products such as building materials (sheets of wood, laminated wood, wood flooring), wooden packaging (crates, pallets), and wooden household items (tableware, ornaments) must meet the stringent ‘deforestation-free’ criteria. The forestry sector, a cornerstone of rural Irish economies, will need to adapt quickly to avoid penalties. Other goods Chocolate products, coffee, printed materials (books, brochures, newspapers), and wooden furniture will also fall under the scope of the EUDR. For businesses exporting these goods, the compliance burden will be significant. Regulatory penalties The EUDR outlines a range of penalties for non-compliance, including: fines proportional to the environmental damage and value of the commodities, with escalating penalties for repeated offences; confiscation of non-compliant products and revenues from their sale; temporary exclusion from public procurement processes and access to public funding for up to 12 months; and prohibition from placing products on the market or exporting them in the event of serious or repeated infringements. Action required Businesses must start preparing now. The first step is understanding the EUDR’s impact on your operations and gathering the necessary data for the due diligence system (DDS). This includes verifying the geolocation of raw materials against the EUDR Map to confirm compliance. The EUDR is more than just a regulatory hurdle; it’s a transformative challenge for Irish exporters. By taking proactive steps, maintaining clear communication within supply chains, and ensuring all products meet the ‘deforestation-free’ criteria, businesses can safeguard their operations and continue to thrive in the European market. With the December 2024 deadline fast approaching, Irish businesses must adapt swiftly to the new regulations or face severe consequences in the EU market. Vivian Nathan is Chief Operating Officer at Baker Tilly Ireland