SMEs hit hard by the pandemic must now grapple with the economic fall-out of the war in Ukraine, signalling fresh uncertainty for the year ahead, so what’s the best plan of action? COVID-19 lockdowns, global supply chain disruption, inflationary pressure – and now the economic fallout from the Russian invasion of Ukraine.  The headwinds facing Ireland’s small- and medium-sized enterprises (SMEs) show no signs of easing as we enter the third quarter of 2022. Even as the year began, the imminent winding down of Government supports for COVID-hit businesses was already prompting speculation of a spike in insolvencies just around the corner. Now, Gabriel Makhlouf, Governor of the Central Bank of Ireland, has called on a “patient” approach from policymakers and creditors to help ensure that “unnecessary liquidations of viable SMEs are avoided over the coming months.” Speaking at a recent event in Dublin co-hosted by the Central Bank of Ireland, Economic and Social Research Institute, and the European Investment Bank, Makhlouf pointed to the need to “channel distressed but viable businesses towards restructuring opportunities and unviable businesses towards liquidation.” Uncertain outlook For those SMEs in the sectors hit hardest by the pandemic, the fresh economic turmoil sparked by the Ukraine invasion will be a cause for concern. “The outlook right now for SMEs generally in Ireland is very hard to determine,” said Neil McDonnell, Chief Executive of the Irish SME Association (ISME). “It will vary considerably from sector to sector, but after two bad years for hospitality and tourism due to the pandemic, the war in Ukraine is likely to mean volumes will remain low into the summer.”  Pandemic-related insolvencies have yet to spike. Research released by PwC in February found that Government support had saved at least 4,500 Irish companies from going bust during the pandemic, representing an average of 50 companies per week during the period. Insolvency rates are likely to rise in the months ahead, however, as pandemic supports are withdrawn from businesses with significant debts, and PwC estimates that there is a debt overhang of at least €10 billion among Ireland’s SMEs, made up of warehoused revenue debt, loans in forbearance, supplier debt, landlords, rates and general utilities.  “Government supports have to end at some point. We realise this, but it will be accompanied by a significant uptick in insolvencies. This is natural and to be expected, since 2020 and 2021 both had lower levels of insolvency than 2019,” said Neil McDonnell. “Aside from hard macroeconomics, however, we can’t ignore the element of sentiment in how businesses will cope. This is the third year in a row of bad news.” Confidence in the market Before taking on his current role as Managing Partner of Grant Thornton Ireland, Michael McAteer led the firm’s advisory services offering, specialising insolvency and corporate recovery. “What I’ve learned is that you really cannot underestimate the importance of confidence in the market,” said McAteer. “If we go back to 2008 – the start of the last recession – or to 2000, when the Dotcom Bubble burst, we can see that, when confidence is lacking, the pendulum can swing very quickly. “If you’d asked me a few weeks ago, before the Ukraine invasion, what lay ahead for the Irish economy this year, I would have been much more optimistic than I am now. “Yes, we were going to see some companies struggling once COVID-19 supports were withdrawn, particularly those that hadn’t kept up with changes in the marketplace that occurred during the pandemic, such as the shift to online retail – but, overall, I would have been confident. Now, it is harder to judge.” Government supports Neil McDonnell welcomed the recent introduction of the Companies (Rescue Process for Small and Micro Companies) Act 2021, which provides for a new dedicated rescue process for small companies. Introduced last December by the Department of Enterprise, Trade and Employment, the legislation provides for a new simplified restructuring process for viable small companies in difficulty. The Small Company Administrative Rescue Process (SCARP) is a more cost-effective alternative to the existing restructuring and rescue mechanisms available to SMEs, who can initiate the process themselves without the need for Court approval. “We lobbied hard for the Small Company Administrative Rescue Process legislation. The key to keeping costs down is that it avoids the necessity for parties to ‘lawyer up’ at the start of the insolvency process,” said McDonnell. “Its efficacy now will be down to the extent to which creditors engage with it and, of course, it has yet to be tested in the courts. We hope creditors will engage positively with it.” McDonnell said further government measures would be needed to help distressed SMEs in the months ahead. “We already see that SMEs are risk-averse at least as far as demand for debt is concerned. Now is the time we should be looking at the tax system to incentivise small businesses,” he said.  “Our Capital Gains Tax (CGT) rate is ridiculously high, and is losing the Exchequer potential yield. Our marginal rate cut-off must be increased to offset wage increases.  “Other supports, such as the Key Employee Engagement Programme (KEEP) and the Research and Development (R&D) Tax Credit need substantial reform to make them usable for the SME sector.” Advice for SMEs For businesses facing into a challenging trading period in the months ahead, Michael McAteer advised a proactive approach. “The advice I give everyone is to try to avoid ‘being in’ the distressed part of the business. By that, I mean: don’t wait until everything goes wrong.  “Deal with what’s in front of you – the current set of circumstances and how it is impacting your business today.  “Ask yourself: what do I need to do to protect my business in this uncertain climate, and do I have a plan A, B and C, depending on how things might play out? “Once you have your playbook, you need to communicate it – and I really can’t overstate how important the communication is.  “Talk to your bank, your suppliers, creditors, and your employees. Sometimes, we can be poor at communicating with our stakeholders. We think that if we keep the head down and keep plugging away, it will be grand.  “By taking time to communicate your plans and telling your stakeholders ‘here’s what we intend to do if A, B or C happens,’ you will bring more confidence into those relationships and that can have a really positive impact on the outlook for your business. “Your bank, your creditors and suppliers are more likely to think: ‘These people know their business. They know what they’re doing.’ If something does go wrong, they know that there is already a plan in place to deal with it.” Role of accountants Accountants and financial advisors will have an important role to play in the months ahead as distressed SMEs seek advice on the best way forward. “We are about to experience levels of inflation we have not seen since the 1980s. This will force businesses to address their cost base and prices,” said Neil McDonnell. “My advice to SMEs would be: talk to your customers, to your bank, and your accountant. Your accountant is not just there for your annual returns. They are a source of business expertise, and businesses should be willing to pay for this professional advice. No business will experience an issue their accountant will not have not come across before.” As inflation rises, SMEs are also likely to see an increase in the number of employees seeking pay increases, McDonnell added. “Anticipate those conversations, if they haven’t occurred already,” he said. “Any conversation about wages is a good time to address efficiency and productivity – is there more your business could be doing to operate more efficiently, for example, thereby mitigating inbound cost increases?”

The war in Ukraine will profoundly impact the defensive stance of the EU’s neutral countries. Russian President Vladimir Putin’s decision to invade Ukraine is changing Europe in ways the Kremlin did not build into its calculations when it sought to conquer its western neighbour.  NATO, the EU and the United States are united in their agreement over an unprecedented, punitive package of sanctions against Russia.  Individual NATO members are sending lethal weapons to Ukraine. NATO, which has boosted its defences in Poland, the Baltic States and Romania, has ruled out a no-fly zone over Ukraine. It fears retaliation from Putin, even the threat of a nuclear strike. Meanwhile, Europe has opened its doors to refugees. No more squabbling over who to admit or how many numbers will flow into each country compared to 2015, when former German Chancellor Angela Merkel gave shelter to over one million Syrian refugees fleeing the war. Germany has thrown away its ‘rule book’. The belief that wandel durch handel (change through trade) would bring Russia closer to Europe is over.  Social Democrat Chancellor Olaf Scholz has reached a Zeitenwende — a turning point — not only regarding Russia, but domestically as well. German defence spending has risen to two percent of gross domestic product, equivalent to about €100 billion a year. The anti-American and pacifist wings in Scholz’s party are also toeing the new line — for now. As for the EU, its foreign policy chief, Josip Borrell, said the bloc would send weapons to Ukraine. What a turnaround for a soft power organisation built on a peace project. This may see the EU transition from a soft power provider to a hard power player as it now urgently reassesses its security and defence stance.  This is where the neutral countries of Ireland, Finland, Sweden, Austria and Malta face challenging debates and decisions. All have signed up to the EU’s Common Security and Defence Policy. With the exception of Denmark and Malta, they are participants in the EU’s Permanent Structured Cooperation (PESCO), aimed at increasing defence cooperation among the member states. They benefit from the decades-long US policy of guaranteeing the security umbrella for its NATO allies in Europe. Somehow, the neutral countries are having their cake and eating it too, but for how much longer? Russia’s attack on Ukraine changes everything about the future role of Europe’s security and defence policy. This was confirmed during the informal summit of EU leaders in Versailles in March. Europe has to take defence seriously.  Neutral Finland and Sweden already cooperate very closely with NATO. Russia’s invasion is leading to intense debates about whether both should now join the organisation.  As for Ireland? The war in Ukraine is linked to the security of all of Europe, forcing neutral countries to confront the reasons for their continued neutrality.  Maintaining neutrality at a time when Europe’s security architecture and the post-Cold War era is being threatened is no longer a luxury monopolised by pacifists, or those who link neutrality to sovereignty. It is about providing security to Europe’s citizens and how to do it collectively.  Taoiseach Micheál Martin has said discussions about military neutrality are for another day. Neutrality, he said, “is not in any shape or form hindering what needs to be done and what has to be done in respect of Ukraine”.  Neale Richmond, Fine Gael TD, has described the neutrality policy as “morally degenerate,” calling for a “long-overdue, serious and realistic conversation” about it.  Tánaiste Leo Varadkar has attempted to straddle both sides here. “This does require us to think about our security policy,” he has said. “I don’t see us applying to join NATO, but I do see us getting more involved in European defence.” Martin did later concede: “The order has been turned upside down by President Putin.” Neutral Ireland – and the rest of the EU – now must draw the consequences. Judy Dempsey is a Non-Resident Senior Fellow at Carnegie Europe and Editor-in-Chief of Strategic Europe.

As we cautiously return to the office, many leaders are considering afresh the changes they made to their management style during the pandemic. Four members outline how their organisation, team, and leadership outlook has changed since March 2020. Gareth Gallagher  Managing Director at Sacyr Concessions  The biggest challenge over the last two years was having to continue operating our assets fully in as safe a way as possible for our staff and the public, and we had to allow anyone who could work from home to work from home.  The government deemed keeping the toll roads safe and operational an essential service, so many of our staff had to work on site. Because of this, we had to continuously do risk assessments to keep our team safe and comply with public health guidelines, such as shift change patterns and fitting out internal structures in vehicles.  Now, though, the staff that had been able to work remotely have started coming back to the office a few days a week. It is nice to have physical meetings with people again, but everyone must remain flexible. There could be times when more face-to-face meetings are required.  The last two years have made it clear to people what is important to them, and that is why flexibility and a hybrid model is more important for job satisfaction than they might have been previously. The hybrid model gives people more autonomy over time and has been proven to work, but the last few years have also emphasised that in-person meetings are more efficient for certain work requirements.  Above all, the pandemic emphasised that communication is critical, and it has probably made me more conscious that I need to check in with people on a more regular basis.  Larissa Feeney  CEO and founder at accountantonline.ie The pandemic coincided with a period of rapid growth in our business. We were in the middle of hiring key staff and implementing new practice management software and about to launch other initiatives when COVID-19 struck, and the future suddenly looked very uncertain.  Fortunately, we already had quite an embedded blend of hybrid and fully remote models in place since 2018, so the move to being fully remote was technically straightforward.  Although we have an office presence in Dublin, Derry and Donegal, over 80 percent of our teams now work fully remotely, and the remainder almost all work hybrid.  The move to almost fully remote working came about by necessity but is hugely positive in many ways for us. I’ve learned that working from home does not suit everyone, and it is undoubtedly the case that regular, daily contact is essential across the teams.  I was concerned that remote staff would miss out on showcasing their talents, and people would become overlooked for promotion and development. However, we are working hard to avoid that with coaching, leadership training and career planning, which has had a positive impact on the visibility of talent development. We have hired an additional 20 people in the last two years. It is still strange but becoming much more normal for me to work with so many people I have not met in person yet. This year, we have planned a series of in-person meetings throughout the country for staff to meet in peer groups, and in May, we will have one larger gathering with all staff for the first time in two years.  Since March 2020, I have supplemented my communication style by scheduling skip level one-to-one video meetings with all individuals so that I can hear staff feedback. I have found that to be a great benefit in understanding their challenges, ideas and suggestions for improvement.  Working life might be easier if we all worked under the same roof, but there are significant personal benefits and cost and time saving to working remotely. Derek Mernagh VP Corporate Controller at KeepTruckin I am a Corporate Controller leading an accounting organisation based in the San Francisco area of the US. I went from sitting in-office with my team five days a week in early 2020 to now managing my team remotely in a matter of days.  I never imagined how the work culture I had gotten used to would change so drastically. I would have thought, at the time, that doing my job remotely would not be possible.  I changed jobs last year and have never met any of my current team in person. This has been a considerable change to adapt to, as I had been so used to in-person management and felt that knowing the team in person helped build stronger working relationships and trust.  Also, the dynamic of meetings was more open and transparent, as everyone had met each other in person, and I felt people were more comfortable in sharing their opinions. Building that connection with the team is more challenging in a remote environment, but I have learned to adapt.  We meet more often because we feel we should check-in due to the work from home environment, but this brings some challenges. “Zoom fatigue” is a real thing.  I try to check-in with my team using direct messages or group channels on collaborative tools like Slack to ask how they are and how things are going. I also have monthly team meetings that we try to make more light in content, so the team can get to know each other better.   There are advantages with the current work schedule that my team and I appreciate, such as no commute time, but finding a hybrid solution for the future where some connection is possible will be a perfect balance.  Una Rooney Corporate Accounting Manager at Allstate Northern Ireland In my company, we have always had the option of remote working; however, it was not often invoked. Since the pandemic, they have now adopted a hybrid working environment which I feel has created an innovative and energised work environment across all locations in Northern Ireland and America. Would I have answered this in the same way in June 2020? I’m unsure. Through the pandemic, we had enforced a work-from-home model. This presented challenges as an organisation and management group in finance, such as onboarding, ensuring people took leave, keeping employee engagement, maintaining a high standard of deliverables, and retaining relationships virtually.  In hindsight, as an already global team with team members in Chicago, we were achieving what we thought were challenges daily. We initially took more time and effort to think outside the traditional corporate box to adapt. I did become more deliberate in my actions and aimed to be seen as much as possible so the team could practice what I was preaching. I ensured I was taking breaks, upskilling remotely and always available for a call.  We did bingo, escape rooms, virtual team lunch, and breakfast for stateside members as a team. These activities were required to ensure collaboration and inclusivity since casual coffees and lunches were no longer on the table.  I know this kind of engagement isn’t for everyone but by providing a non-busy period, we were able to look after staff mental health while helping integrate new starts and build up relationships with other team members and myself as manager.  By building up this rapport and respect virtually, I felt we saw the deliverables and standards being maintained. Team members were open to asking questions, and I kept an open-door policy to ensure communication was still prevalent. We all made a forced change. Before, I was an office worker and never thought of hybrid as an option. Now, the working world is evolving and, if used correctly, can bring a highly-motivated and highly-productive finance team globally. 

Overdone stimulus at the height of the pandemic, supply chain disruption and Russia’s Ukraine invasion are all fuelling spiralling inflation. Central banks need to work harder to find the economic sweet spot, writes Cormac Lucey. Two years ago, as COVID-19 was first running rampant worldwide, our economic authorities resolved to prevent the resulting shutdowns from turning into economic depression by unleashing an unparalleled level of economic stimulus.  In the UK, the budget deficit shot up to 15 percent of GDP. In Ireland, the deficit approached 10 percent of modified gross national income. This fiscal support was accompanied by strong monetary stimulus.  Whereas UK broad money grew by six percent in the two years to June 2019, it rose by 22 percent in the two years to June 2021. The equivalent figures for the Eurozone were nine and 18 percent, respectively.  While a medical nightmare was unfolding for our health services from March 2020, from an equity investor’s perspective, the 18 months that followed represented a sweet spot, as authorities stuffed economic stimulus into their economies and asset prices were the first beneficiaries.  Since April 2020, UK stock prices (as represented by the FT 100 index) have risen by over 35 percent, while Irish shares (Iseq index) have jumped by over 40 percent. What’s bad for Main Street is often good for Wall Street.  Now, as the COVID-19 threat recedes, this threatens to go into sharp reverse. What’s good for Main Street risks being bad for Wall Street.  Sharp rises in inflation across the developed world are forcing central banks into withdrawing monetary stimulus and pushing interest rate increases. What lies behind this sudden burst in inflation?  First, levels of policy stimulus were overdone in some parts of the world. Whereas the growth in two-year money supply figures referenced above was nine percent in the Eurozone and 16 percent in the UK, it was 25 percent in the US. Guess who has the biggest inflation problem?  It is also notable that there is little or no marked inflation problem in South-East Asia, where the COVID-19-induced increase in money supply was minimal.  Second, supply chain problems, especially energy, have contributed significantly to recent inflation readings. Eurozone inflation in the 12 months to January was 5.1 percent. Excluding energy, it would have been just 2.6 percent.  Sharply rising energy prices are a symptom of the West shutting down conventional carbon-based sources of supply before alternative sources are ready to take up the slack.  This shortage has been aggravated by sanctions imposed on Russia following its invasion of Ukraine. Over time, we should expect supply chain problems to be fixed and higher energy prices to be their own cure, suppressing demand and allowing for price stabilisation and reductions. The financial sweet spot of two years ago risks becoming a sour spot as central bankers rush to restore their credibility in the face of ever-higher inflation readings.  Jerome Powell, Chair of the US Federal Reserve, said recently, “The [Federal Open Market] Committee is determined to take the measures necessary to restore price stability. The American economy is very strong and well-positioned to handle tighter monetary policy.’’  Well, over fifty years ago, the then-Chair of the Federal Reserve, William McChesney Martin, said the central bank’s job was to “take away the punch bowl just when the party gets going.” His successors may not just have to take away the punch bowl, but also shove partygoers into a cold shower. There is a real danger that an already slowing US economy could be pushed into a recession by aggressive central bank tightening. Europe would be unlikely to escape the resulting economic fallout.  Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland.

The IAASB’s new quality management standards represent a fundamental shift in focus for auditors and firms must act now to prepare for the fast-approaching compliance deadline, writes Noreen O’Halloran. The suite of quality management standards released by the International Auditing and Assurance Standards Board (IAASB) will have a major impact on all audit firms, regardless of size, and now is the time to start getting your house in order. Effective from December of this year, these standards include a revised International Standard on Auditing – ISA 220 (revised) Quality Control for an Audit of Financial Statements and two new International Standard on Quality Management. These are ISQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements; and ISQM 2 Engagement Quality Reviews.  Practitioners are required by these standards to have necessary systems designed and implemented by 15 December 2022, with the monitoring reviews performed within one year of this date.  Irish standards align The Irish Auditing and Accounting Supervisory Authority (IAASA) has released revised quality management standards aligned with those released by IAASB. By releasing new standards, the IAASB is addressing the need for the audit profession to perform quality engagements consistently.  These standards require audit firms to have in place a strong system of quality management that is robust, proactive, and scalable, enabling the consistent execution of high-quality engagements.  While these standards are welcome, they do impose additional time, effort and ultimately costs on audit firms. ISQM 1: the lowdown ISQM 1, the standard replacing International Standard on Quality Control 1 (ISQC 1), addresses a firm’s requirement to design a system of quality management to manage the calibre of engagements performed by the firm.  This standard applies to all firms performing audits or reviews of financial statements, or other assurance or related services engagements. A firm must now establish quality objectives, identify, and assess quality risks, and design and implement responses to address those risks.  This is a much more forward-looking, proactive approach than that currently required under ISQC 1. The process is expected to be iterative, requiring continuous improvement and revisiting.  ISQM 1 comprises eight components, two of which are process driven. These are the risk assessment process and the monitoring and remediation process.  The remaining six are quality objective components, comprising  governance and leadership, relevant ethical requirements, resources, acceptance and continuance, engagement performance, resources, and information and communication.  Audit firms must apply a risk-based approach in designing, implementing, and operating the components in an interconnected and coordinated manner, tailoring their approach to the specific risks arising for a firm. Risk assessment  Audit firms are required to establish quality objectives for each of the six quality objective components. Certain quality objectives are predetermined in ISQM 1.  Firms must also establish additional quality objectives responsive to the nature and circumstances of the firm or its engagements. Once the quality objectives are established, the firm will then need to identify and assess quality risks, taking into consideration the type of engagements carried out and the extent to which this work may create quality risks in relation to specific quality objectives.  Firms are likely to have some existing policies and procedures in place, which may continue to be relevant in meeting these new requirements.  Existing policies and procedures should not, however, be carried forward without first considering the specific requirements in ISQM 1 and the individual nature and circumstances of a firm and its engagements.  Gap analysis A gap analysis is a must for all firms to help them identify areas where they may need additional or different responses.  Not all risks identified will rise to the level of a quality risk as defined in ISQM 1. Quality risks are those that have a reasonable possibility of occurring and a reasonable possibility of individually, or in combination with other risks, adversely affecting the achievement of one or more quality objectives.  For example, in a small firm, where leadership may be concentrated in a single or a very small number of individuals the firm may identify a quality risk with respect to the Governance and Leadership component as staff may be reluctant to challenge or question the actions or behaviours of leadership, due to fear of reprisal.  After quality risks have been identified, firms must then design and implement a response to those specific risks.  Appropriate response The ISQM 1 identifies several specific responses required by a firm. Responses that are properly designed and implemented will mitigate the possibility that the quality risk will occur, resulting in the firm achieving its quality objective.  Take the previous example of a small firm with a single or very small number of individuals at leadership level, whose behaviours staff may be reluctant to challenge. The quality risk arising here might be addressed by obtaining anonymous periodic feedback from staff at all levels within the firm using focus groups and/or staff surveys.  Firms should keep in mind that the quality objectives for one component may support or overlap with those of another.  When establishing quality objectives, therefore, it can be useful to think of the components as interrelated or interdependent with each other.  Here’s one example. The quality objective in the information and communication component, regarding relevant and reliable information exchange throughout the firm, links with the ethical requirements component, regarding the communication of relevant ethical requirements applying to individuals within the firm.  The nature and circumstances of the quality objectives, the identified risk and the subsequent responses will differ from one firm to the next, depending on their size, network structure (when relevant) and the type of engagements they provide. Monitoring and remediation The monitoring and remediation process can be split into several elements, comprising: the design and performance of monitoring activities; evaluating findings and identifying deficiencies; evaluating identified deficiencies; responding to the identified deficiencies; and  communicating the findings.  Looking back at our earlier quality risk regarding staff reluctant to challenge or question the actions or behaviours of leadership, a potential response was that the firm might facilitate focus groups and/or staff surveys to gather anonymous feedback regarding the actions and behaviours of leadership.  Once sought, such feedback must then be monitored. The firm may collate the feedback and present it to leadership, including details of the actions required to address the feedback and a corresponding timeline for these actions.  The purpose of monitoring the activity here is to determine whether the response to the quality risk is appropriate. If deficiencies are identified as part of this monitoring, firms need to evaluate their severity and determine how pervasive they may be.  This will help firms to focus on the deficiencies giving rise to the most significant risks. They should also evaluate the root cause of these deficiencies. Root cause analysis is not a new concept to practitioners. Many will already be undertaking this process when deficiencies are identified.  However, for those firms not currently doing so, ISQM 1 requires a root cause analysis in respect of identified deficiencies. ISQM 2 and ISA 220 revised While ISQM 2 is a new standard released by the IAASB, many of its elements have been relocated from either ISQC 1 or ISA 220, addressing both the responsibilities of the firm and the engagement quality reviewer.  The engagement quality reviewer is part of the firm’s response, rather than the engagement team’s response to quality management.  The engagement quality reviewer is required to exercise professional scepticism, rather than professional judgement, which is the responsibility of the engagement team when obtaining and evaluating audit evidence.  Revisions have also been made to ISA 220 (revised), which remove the requirement for an engagement quality review (as that is now contained in ISQM 2), and also clarify and strengthen the key elements of quality management at the engagement level, including the responsibility of the engagement partner.  The engagement partner is responsible for managing and achieving quality at the engagement level. These changes include revision to the definition of the engagement team, to include all those who perform audit procedures on the engagement regardless of their location or relationship to the firm. There is also a new stand-back requirement for the engagement partner to determine that they have taken overall responsibility for managing and achieving quality on the audit engagement.  Ensuring compliance The IAASB’s new quality management standards represent a fundamental shift in focus from quality control to quality management, and all firms should act swiftly to prepare for these changes. Here are three steps you can take to help ensure compliance by 15 December 2022: Consider your current position against the new requirements, and identify areas where your firm could start to progress implementation plans, along with the individuals within the firm who need to be involved.  Look at your current resources and – particularly for non-network firms – consider whether additional resources might be needed, and if service providers may be required to fill any gaps.  For network firms, each individual firm is responsible for its own system of quality management, including design, implementation, and operation. Locally you may need to consider how the network requirements might need be adapted or supplemented by the individual firm to be appropriate.  Bear in mind that the new quality management standards provide an excellent opportunity to enhance the quality and consistency of audits.  These standards will drive firms to implement quality management consistently, supporting audits of a higher quality.  A word of warning, though: don’t underestimate the time, resources and investment needed to implement these standards. You will also need appropriate buy-in and a commitment to quality enhancement from those in leadership.  A great deal of change management may be required to effectively implement the new and revised standards. With the implementation date fast approaching, time is of the essence.   Noreen O’Halloran is a Director in the Department of Professional Practice at KPMG Ireland.

The high street is firmly back on the business agenda for UK entrepreneurs keen to boost visibility and engagement with customers, influencers and the media. Customers are buying and UK businesses are using every channel at their disposal to service demand while being in the spaces and places of the target shopper.  Because founders come looking for content and support on topics from raising money to hiring staff, Enterprise Nation is able to track sentiment and trends. Right now, the prevailing topic is how to service customer demand.  Customers, both large and small, are actively shopping both online and off line. Consumers are heading out in search of new experiences and products, and big brands – including corporates and government – are buying from small firms offering the niche services they are after.  Entrepreneurial founders are intent on servicing this demand regardless of the rising cost of doing business. There are three ways in which we are seeing this trend materialise:  E-commerce There are many platforms from which small businesses can sell both within the UK and overseas. Amazon has long had a position of strength in enabling spare room start-ups and growth companies to reach customers across the globe. The e-commerce giant is now being joined in a busy market by new platforms, such as Faire.com, which connect retailers to wholesalers, high street brands like John Lewis and Joules, who are starting their own marketplaces stocked with products from small businesses, and emerging sector-specific niche platforms, such as Glassette.com for homewares. All offer small businesses a rapid route to market, with payment solutions such as Klarna enabling a straightforward sales process for the customer.  Pop-up retail In order to meet customers, buyers, influencers and journalists on the High Street, small businesses are testing physical retail locations and bringing their brand into the real world. Property operators, including Sook, SituLive and Space and People, are making physical retail a viable option for the smallest of companies by allowing them to rent space by the hour, and on a budget. In-person events After a two-year hiatus, physical events are making a comeback, with the number of live business gatherings listed on our platform doubling in the past two months. As a result, we’re also seeing the return of the serendipitous meeting during the workday coffee break, or after-work drink, once again opening up new opportunities for the hustling entrepreneur.  Small businesses are powering on all cylinders and are staying updated on the techniques that will help them reach more customers effectively and efficiently. Doing so will deliver revenue, economic growth, and a vibrant business community successfully servicing market demand in entrepreneurial style.   Emma Jones is the Founder of Enterprise Nation, a business support platform and provider that operates in the UK and Ireland.