The OECD has published a paper comparing the tax treatment of labour and capital income. The authors have compared the effective tax rates (“ETRs”) for taxpayers earning different levels and types of incomes which demonstrates that dividend income and capital gains are generally subject to lower ETRs than wage income. In their view, this has implications for both efficiency and equity.

Derarca Dennis sheds light on the pivotal role CFOs and the finance function play in shaping organisations and the growing significance of talent management in their evolving roles The EY Ireland CFO Survey 2023 has found that CFOs and the finance function are playing an increasingly strategic role in their organisations. They are engaging more with other business areas, requiring new skills and an increased focus on talent management. While automation and advanced data analytics capabilities will undoubtedly be critically important in supporting the future role of the finance function, talent retention must remain a key area of focus if it is to fulfil its potential. Forty percent of the CFOs surveyed said their priority for driving growth in the coming year is investing in upskilling existing talent in their organisations, while 34 percent said investing in new talent would be a priority. Investing in diverse talent Continued investment in diverse talent will be imperative given the finance function’s evolving and increasingly business-critical role. The changing nature of finance reporting requires CFOs to master a diversity of skills, especially a deep understanding of non-financial factors. It requires them to make profound changes in the composition of finance teams. Future finance teams will augment their traditional finance skills with environmental, social and governance (ESG) professionals while also containing data analysts, supply chain experts and process engineers. Finance teams will, of course, be finance experts at their core, but they will also draw upon a diverse talent pool to enable the function to play its full role as a strategic partner in the overall business. On a continuous learning curve A culture of continuous learning that empowers employees to work at their best and realise their potential is a proven talent retention strategy. Not only does it deliver increased job satisfaction, but it opens up new career opportunities within the organisation. However, organisations must also seek to automate the dull, repetitive tasks traditionally undertaken by the finance function, allowing finance professionals to focus on more value-added work. Where tasks cannot be automated, CFOs can fill capability gaps by sourcing the required skill sets through professional service partners. These organisations can offer a range of services from basic accounting activities, record-to-report activities and control monitoring and testing, to day-to-day treasury operations, typically on a managed service basis, leaving the finance function to focus on business strategies, forecasting and stakeholder management. Future-fit CFOs To thrive in the evolving landscape, CFOs must consider a holistic approach, which involves: talent management strategies aimed at upskilling existing employees and attracting and retaining recruits; acquiring the diverse skills that will make the finance function fit for its increasingly strategic role in the organisation; leveraging existing capability within other departments to support the finance function; outsourcing or co-sourcing elements of the finance function to external partners on a managed service basis; and stemming employee turnover by ensuring that processes are future-ready and efficient enough to retain talent interest and engagement. A diverse finance function is the future The changing role of CFOs in Ireland and their teams makes it imperative to focus on people management and acquiring and retaining diverse skill sets. Finance functions of the future will encompass a wide array of professionals whose skill sets will contribute to the organisation’s strategic growth. Ultimately, driving greater value for the organisation hinges upon empowering talented individuals with efficient, automated and data-driven processes across financial and non-financial domains. Derarca Dennis is Assurance Partner at EY Ireland

Organisations adopting AI to streamline processes must provide clear guidance to staff on the dos and don’ts of using the technology, writes Moira Grassick Artificial intelligence (AI) has gone mainstream this year. It seems that everyone has a story about how they have used ChatGPT, the generative AI tool, to make their personal or working life easier. From an employer’s perspective, the rapid progress of AI raises difficult questions, however. Although a chatbot on the company website can be a valuable tool for interacting with customers, there are tricky ethical questions and business risks to consider here. Employers are grappling with issues such as whether staff should be permitted to use AI to make their jobs easier, data protection concerns, and whether the outputs generated by AI tools are accurate enough to rely on. For employers, the key risk to assess is the scale of any damage their business might suffer if staff do not use the technology correctly. Many people are familiar with the US lawyer who used ChatGPT to help him prepare a case with disastrous results. The lawyer cited several cases in court filings that were fabricated by AI. The lawyer didn’t consider that the technology would generate fictitious precedents and was unaware that it might produce inaccurate information. To avoid the embarrassment of making a similar mistake, employers can take some prudent actions to protect their business against the risks posed by employees using AI tools. Develop an AI policy To avoid an embarrassing situation like the one suffered by the hapless US lawyer, your business should consider developing an AI policy. This policy can address specific risks affecting your business. Some of the most common issues arising from the use of AI in the workplace are: Protection of confidential client and employee information While many of the tasks that typically involve the use of AI do not pose any obvious risks, employees must be aware that sensitive company data should not be accessed by AI tools. AI tools analyse vast amounts of data to generate responses to queries, and it’s important that no personal information about your employees or customers is disclosed. If an employee submits confidential information to ChatGPT or any other AI tool, your business is exposed to a range of privacy, commercial and data protection risks. Your AI policy needs to clearly define what types of data employees can submit to AI tools. Intellectual property risks You also need to consider intellectual property risks. If your business publishes content online, it is important to ensure that AI-generated content is not subject to copyright. AI tools typically do not cite the sources of the content they create. Instead, the AI tool may generate output by using existing content that appears on the internet rather than producing original work. Organisations, therefore, cannot check if the publication of AI-generated content will breach someone else’s intellectual property rights. If AI generates someone else’s content, and an organisation publishes it as its own, it is open to reputational damage for plagiarism. Safeguarding the organisation With AI becoming mainstream, now is the time to start preparing your AI policy. To get the most out of AI technology, you must inform staff about how to use the tools responsibly. With a strong policy in place, you can ensure your business can reap the benefits of this powerful new technology while safeguarding your operations against confidentiality, intellectual property and data protection risks. Moira Grassick is Chief Operating Officer at Peninsula Ireland

Safeguarding your organisation’s systems and data against cybersecurity risk is crucial. Mark Butler explores how you can use training to help fortify your defences Safeguarding sensitive information and data is now of paramount concern for businesses across the globe. Irish businesses are no exception. For example, the Health Service Executive was the victim of a high-profile cybersecurity breach in 2021. Virgin Media Television also suffered an “unauthorised attempt” to access its systems in February 2023, disrupting its services. As the adage goes, “A chain is only as strong as its weakest link.” Typically, that link often happens to be an unwitting employee. That’s where comprehensive cybersecurity training and awareness programmes come into play, serving as the bedrock of a resilient defence strategy against cyber threats. Creating a culture of security Effective cybersecurity training and awareness programmes are not just a checkbox exercise; they are the building blocks of a cybersecurity culture that must permeate every corner of an organisation. The entire business ecosystem benefits when employees are well-informed and empowered to recognise and respond to potential threats. There are several steps organisations can take to ensure cybersecurity best practice. 1. Addressing diverse threats The first step in crafting a robust cybersecurity training programme is recognising that threats are diverse and constantly evolving. Tailor training modules to address various risks, including phishing and social engineering. Irish businesses should collaborate with cybersecurity experts to develop engaging, scenario-based training that mimics real-world situations. This approach allows employees to practise identifying and responding to phishing attempts and other threats in a controlled environment. 2. Password management Password hygiene is a fundamental pillar of cybersecurity. Educate employees about the significance of strong, unique passwords and the criticality of regular updates. Encourage the use of password managers to simplify this process and discourage the reuse of passwords across multiple accounts. By instilling good password practices, businesses can significantly reduce the risk of unauthorised access. 3. Identifying and avoiding phishing attempts Phishing attacks remain a pervasive threat, often exploiting human psychology to trick employees into divulging sensitive information. Train employees to scrutinise emails, especially those requesting personal or financial data, by encouraging them to verify the legitimacy of requests through alternative means of communication before taking action. Emphasise the tell-tale signs of phishing, such as mismatched URLs, generic greetings and urgent demands. 4. Navigating digital safety Safe internet usage is not a mere suggestion but a core principle of cybersecurity. Provide guidelines for secure browsing, avoiding suspicious websites and refraining from downloading attachments or clicking on links from unknown sources. Equip employees with the knowledge to identify malicious websites and teach them to recognise secure connections through the HTTPS protocol. 5. Continuous learning and simulated exercises Effective cybersecurity training is not a one-time event; it’s an ongoing process. Regularly update training materials to reflect new threats and techniques employed by cybercriminals. Implement simulated phishing exercises to assess employees’ ability to apply their training in real-world scenarios. These exercises not only evaluate readiness but also serve as valuable learning experiences. Knowledge is power Fostering a culture of cybersecurity hinges on implementing comprehensive training and awareness programmes. Businesses can significantly reduce the risk of breaches and data loss by equipping their team with the tools to recognise and respond to threats. Investing in cybersecurity education is an investment in the long-term resilience and success of the organisation. In a digital landscape, knowledge is power, and empowered employees are the first defence against cyber threats. Mark Butler is the Managing Partner at HLB Ireland

Welcome to this week’s Technical Roundup. In case you missed it over the Summer…. The Institute has issued Technical Alert 05/2023 Questions and answers on the Corporate Sustainability Reporting Directive and the European Sustainability Reporting Standards. The Technical Alert provides members with some information about the Corporate Sustainability Reporting Directive (CSRD) and explains when and how members may be impacted by it. The Institute has released Technical Release 02 2023 Solicitors Accounts Regulations 2023. This publication has been jointly developed by the member bodies of the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I). The Law Society have recently introduced new Solicitors Accounts Regulations, which came into operation on 1 July 2023, and apply to accounting periods beginning on or after that date. TR 02/2023 is intended to provide information for members undertaking reporting engagements in accordance with the Regulations. It replaces Technical Release 01/2016 Solicitors Accounts Regulations 2014 – Republic of Ireland. The Technical Release summarises some of the key requirements of the Regulations which are available on the website of the Law Society of Ireland. Read more on these and other developments that may be of interest to members below. Financial Reporting The FRC issued amendments to FRS 101 and FRS 102 relating to the OECD's Pillar Two model rules. These amendments mirror similar changes made at international level to IAS 12 Income Taxes and introduce a temporary exception to accounting for deferred taxes arising from the implementation of the Pillar Two model rules, alongside targeted disclosure requirements. The Financial Reporting Technical Committee of Chartered Accountants Ireland issued its response to the International Accounting Standards Board’s Exposure Draft Amendments to the Classification and Measurement of Financial Instruments Proposed amendments to IFRS 9 and IFRS 7. The Financial Reporting Council (FRC) has published the 21st edition of its Key Facts and Trends (KFAT) report, providing the latest statistical information and trends on the UK accountancy and audit profession. The FRC will be hosting some roundtables throughout September to gain stakeholder views on the new corporate reporting requirements. EFRAG has published its Final Comment Letter in response to the IASB's Exposure Draft 2023/2 Amendments to the Classification and Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7) (‘the ED’).  The International Accounting Standards Board (IASB) has concluded its decision-making on two projects—its final steps before drafting and balloting two new IFRS Accounting Standards. The first of these forthcoming Accounting Standards is designed to clarify and enhance information companies provide about their financial performance. The other will simplify the financial statements prepared by subsidiaries of listed groups. Audit IAASA has published guidelines for the Recognised Accountancy Bodies to apply to their approval and resignation function in respect of Statutory Auditors and Audit Firms. These are effective from 1 June 2024. Sustainability In July, the Institute issued its response to the European Commission’s request for Feedback on its Draft Delegated Act. Following its consideration of the various responses to the request for feedback, the European Commission (EC) adopted the European Sustainability Reporting Standards (ESRS) on 31 July 2023. This marks a significant milestone in the development of European Sustainability Reporting Standards. The standard will enter into force following its publication in the Official Journal of the European Union and the first wave of entities will report under the ESRS for periods commencing on or after 1 January 2024. The reporting requirements will then be phased-in over the subsequent years to various company types and sizes. Accountancy Europe and the International Federation of Accountants (IFAC) are bringing together a diverse range of stakeholders to discuss the regulatory, policy and standard-setting path toward high-quality sustainability assurance and the main matters covered within the IAASB’s proposed standard. This in person event takes place on 3 October at the Accountancy Europe offices in Brussels. The IAASB issued the proposed, landmark International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation on August 2. When approved, ISSA 5000 will be the most comprehensive sustainability assurance standard available to all assurance practitioners across the globe. It will apply to sustainability information reported about any appropriate sustainability matter and prepared under any suitable framework. It will also apply for both limited and reasonable assurance engagements. The Financial Reporting Council (FRC) Lab has published a new report titled “ESG Data Distribution and Consumption” examining how investors obtain and use environmental, social and governance The Financial Reporting Council (FRC) has also published a thematic review, assessing the quality and maturity of climate-related metrics and targets disclosures. The International Organization of Securities Commissions (IOSCO) has announced its endorsement of the International Sustainability Standards Board’s (ISSB) Standards following its comprehensive review of the Standards. Other News The Financial Reporting Council (FRC) has welcomed the Government’s publication of the draft statutory instrument on corporate reporting, which strengthens reporting requirements for very large companies in the UK. In August, the Financial Reporting Council has published the 21st edition of its Key Facts and Trends (KFAT) report, providing the latest statistical information and trends on the UK accountancy and audit profession; the International Auditing and Assurance Standards Board has issued the proposed, landmark International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its latest edition of the Spotlight on Markets Newsletter. The Department for Communities has announced the appointment of Gerard McCurdy as the new Chief Commissioner to the Board of the Charity Commission for Northern Ireland from 1 September 2023 to 31 August 2028.  Mr McCurdy has served on the Board since 1 March 2019 as the Deputy Chief Commissioner and as the Interim Chief Commissioner from December 2022. The Central Bank of Ireland is inviting feedback from stakeholders after publishing a discussion paper on an approach to developing a macroprudential policy framework for investment funds.  The publication aims to advance the ongoing international and European discussions on how a macroprudential perspective in the regulation of the funds sector could be achieved. It outlines key considerations for developing and operationalising such a framework. The closing date for submissions is 15 November. Minister Kevin Hollinrake, on behalf of the Department of Business and Trade, has announced the appointment of Richard Moriarty as CEO of the Financial Reporting Council (FRC), succeeding Sir Jon Thompson. The European Securities and Markets Authority (ESMA) has published a Report on Suspicious Transactions and Order Reports (STORs). The report provides an overview of how STORs are used across different jurisdictions in the context of the detection and investigation of market abuse, and how their use has evolved over time.   In July, IAASA responded to the IESBA (International Ethics Standards Board for Accountants) consultation on its Proposed Strategy and Work Plan, 2024-2027. The European Commission is adopting a package of infringement decisions due to the absence of communication by Member States of measures taken to transpose EU directives into national law For further technical information and updates please visit the Technical Hub on the Institute website.    

Following the release of two new standards by the International Sustainability Standards Board, Linda McWeeney outlines what companies can do now to prepare for their application The International Sustainability Standards Board (ISSB) has released two sustainability standards. It will be for jurisdictional authorities to decide whether to mandate use of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards, consistent with the approach taken for IFRS Accounting Standards issued by the IASB. These will be effective for annual reporting periods on or after 1 January 2024. The main aim of the new ISSB sustainability standards (S1 and S2) is that, initially, companies will provide reasonable and supportive information with regard to sustainability. The ISSB has provided reliefs and guidance. Year one requirements Even though there will be a requirement to provide sustainability reporting information along with the financial statements, companies can hold off on this reporting in year one and align it with their half yearly reporting where necessary.  There will also be no requirement for comparative information in year one. Companies using different methods can continue to use these methods for measuring scopes for the first year and will continue to align methods with the Greenhouse Gas (GHG) Protocol.    S1 and S2 will not be entirely new to many companies as they have been developed and built on the Task Force on Climate-related Financial Disclosures (TCFD) framework and Sustainability Accounting Standards Board (SASB) standards.   Investors and regulators demand and need high-quality, comparable information about risks and opportunities in relation to climate change in particular.   TCFD disclosure recommendations The TCFD sets out disclosure recommendations based upon core elements around which companies operate. These are: Governance Strategy Risk management Metrics and targets The disclosure recommendations are structured around these four elements. This information should help investors understand how the relevant reporting organisations think about and assess climate-related risks and opportunities: Governance Companies need to describe the board’s oversight of climate-related risks and opportunities.   Processes need to be in place to identify climate-related issues and boards need to be kept informed regularly on these issues. Climate needs to be part of the company’s strategy, policies, plans, budgets, goals and targets. Strategy Companies need to be able to describe the climate-related risks and opportunities and their impact on the organisation’s businesses, strategy, and financial planning. Risk management Processes need to be in place for identifying and assessing climate-related risks. How significant climate-related risks are in relation to other risks should be discussed and analysed. Boards should consider regulatory requirements related to climate change and how to mitigate and control material risks. Metrics and targets Metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process should be disclosed.  GHG emissions should be calculated in line with the GHG Protocol methodology to allow for aggregation and comparability across organisations and jurisdictions.  Reporting on emissions Companies are required to report on emissions. Direct emissions are generated from sources owned and controlled by the reporting company – e.g., transport fuels, heating fuels and fugitive gases or emissions of GHG associated with particular manufacturing processes. These emissions are classified as scope 1.   Indirect emissions are also generated as a consequence of the activities of the reporting company—but occur at sources owned or controlled by another company. These include scope 2 and scope 3 emissions.  Scope 2 includes the emissions associated with the purchase of electricity, heat, steam and cooling. Companies can identify these energy uses on the basis of utility bills or metered energy consumption at facilities within the inventory boundary.  The ISSB has agreed that a company disclosing scope 2 emissions would use the locations-based approach, which emphasises the connection between consumer demand for electricity and the emissions resulting from local electricity production.  Within a particular geographic boundary and over a specified time period, electricity output is aggregated and averaged.   Scope 3 emissions include entire value chain emissions. The majority of total corporate emissions fall under this scope from the goods it purchases to the disposal of the products it sells. While Scope 1 and 2 emissions are within the control of the company as they are operational, scope 3 emissions raise business development and strategy questions pertaining to products and services.   Companies using different methods can continue to use these methods for measuring scopes for the first year and will continue to align methods with the GHG Protocol.      Companies can also continue to be guided by the Global Reporting Initiative (GRI) and European Sustainability Reporting Standards (ESRS) to help assess and take responsibility for their impacts and contribute to a more sustainable future using a multi-stakeholder and investor-focused approach. Next steps The standards will be effective for annual reporting periods on or after 1 January 2024 and individual jurisdictions will decide whether and when to adopt the IFRS Sustainability Disclosure Standards. The ISSB has stated that it is working closely with jurisdictional standard setters to maximise interoperability between its standards and incoming mandatory reporting frameworks including the European Commission with their European Sustainability Reporting Standards (ESRS), and the US Securities and Exchange Commission. Linda McWeeney is Non-Executive Director and Senior Lecturer in Accounting and Finance at Technological University Dublin

In a world where social connections fuel success, extroverts hold a natural edge. Jean Evans explains how they can supercharge their networking through authentic and considerate interactions Extroverts have a natural advantage when it comes to networking. They thrive in social situations and are energised by interacting with others. Extroverts get their energy from other people. Extroverts are the quintessential social butterflies. They can easily dominate a room and a conversation. This can be intimidating for people who identify as shy or as shy introverts. However, even for extroverts, effective networking requires some strategies and considerations. Leverage your strengths Extroverts have a natural ability to engage in conversations and connect with people. They should use their outgoing personality to their advantage by initiating conversations and showing genuine interest in others to make them comfortable. Become an active listener While extroverts enjoy talking and sharing their thoughts, it’s important to remember that networking is a two-way street. Extroverts should practise being active listeners, asking open-ended questions, and giving others their full attention to build meaningful connections. Offer help and support Extroverts can make a lasting impression by being genuinely helpful and supportive to others by sharing their knowledge, expertise or resources whenever possible. When people genuinely desire to help others, they increase the likelihood of being remembered and having a favour reciprocated. Follow up After meeting someone, the extrovert should take the initiative to follow up and nurture the connection. Send a personalised email, connect on social media or schedule a coffee meeting to continue the conversation. Effective networking requires ongoing effort and relationship-building. Attend to body language Extroverts can easily express their enthusiasm and energy through their body language. However, they should also be mindful of subtle non-verbal cues, such as maintaining eye contact, smiling and having an open posture. These signals convey approachability and engagement. Numbers matter Setting a goal and being intentional about attending networking events is crucial. Extroverts can manage meeting more people without depleting their internal battery, but successful networking is not about meeting as many people as possible. It’s about having meaningful conversations that can lead to further meetings.  You don’t want to meet more people than you can realistically follow up with after the event. Meet only three to five people per event. Networking as a long-term investment Remember that effective networking is a long-term investment, and it’s about building genuine connections rather than collecting business cards.  Networking is a marathon and not a sprint. Extroverts can leverage their social nature by making meaningful connections and expanding their professional network. Jean Evans is Networking Architect at NetworkMe

Despite mounting scepticism, financial trends suggest that ESG is here to stay even if it is under a new name. Dan Byrne explains why You’d be forgiven for doubting the staying power of the environmental, social and governance (ESG) movement given the current wave of negativity. After all, the stories of pushback are mounting.  Granted, most are coming from the US. Republicans and fiscal conservatives are openly hostile to the term. They are led by people such as Texas Governor Greg Abbott and Florida Governor/presidential contender Ron DeSantis, who dismiss the concept as “woke capitalism”, restricting business and harming profits.  But the old saying still has weight: “If America sneezes, the world catches a cold.” It’s enough negativity to make investors more wary of ESG, and boards wonder whether they need to bother with it. Is this backlash a legitimate threat to ESG? Not from where we’re standing. Follow the money The main reason ESG will survive the backlash is that the money simply isn’t following the rhetoric. ESG critics can be as loud as they want, but they’re not making the corporate world think differently.  Two-thirds of respondents to a 2023 Bloomberg survey expect firms to continue incorporating ESG metrics into their business.  Meanwhile, financial services firm Morningstar Inc. has released new data showing that the success of anti-ESG funds has fallen dramatically from its peak in the third quarter of 2022. This peak was minor compared with the total value of ESG assets.  In other words, ESG priorities remain fixed, and the money working against them is dwindling.  The only thing likely to suffer from this wave of negativity is the actual term: ‘ESG’. Rechristening ESG The true measure of the longevity of ‘ESG’ is that many in the pro-ESG camp are willing to part ways with the term. Larry Fink, head of BlackRock Inc, has said he no longer uses it because of how politicised it has become. Even McDonald’s has done away with it. Meanwhile, the same two-thirds of respondents to the Bloomberg survey said that while firms would keep pursuing ESG, they would stop using the acronym.  But none of these groups are abandoning the principles underpinning ESG.  You might call it the one potential victory of the anti-ESG brigade: a rechristening – purely because firms are worried about reputational risk. Before the current backlash, it was estimated that the value of ESG assets would reach US$50 trillion by 2025. At the start of this year, they were estimated at $41 trillion and growing.  If, in five years, we’re calling ESG something different, it probably won’t dent the underlying principles that investors, consumers and many politicians care so vocally about. So, while the ESG backlash may be loud, we’re not seeing any evidence that its principles are losing ground.  Hence, directors and other corporate leaders hearing the noise from the US and thinking the concept is almost irrelevant should think again.  ESG remains ESG, even if its name changes. Dan Byrne is a journalist with the Corporate Governance Institute

Diversity is not just about race and gender. Andrea Dermody explores the benefits of embracing neurodiversity in the workplace, fostering inclusivity for all employees Research indicates that a significant portion of the global population – 15 to 20 percent – are neurodivergent, with distinct cognitive processes. This encompasses conditions such as attention deficit disorders, autism, dyslexia and dyspraxia, adding a unique dimension to workplaces. Despite growing emphasis on diversity, equity and inclusion (DE&I), the employment prospects and support for neurodivergent individuals remain inadequate. As a result, neurodivergent individuals often experience higher rates of unemployment compared with the general population. However, when organisations attract and retain neurodiverse talent, the benefits can be far-reaching. Benefits of a neurodiverse workforce A neurodiverse workforce can bring many benefits to an organisation: Increased creativity: Neurodiverse individuals often have unique perspectives and ways of thinking, which can lead to innovative ideas and solutions. Enhanced problem-solving skills: Neurodiverse individuals may approach problems differently from their neurotypical counterparts, which can lead to more effective problem-solving and decision-making. Improved productivity: By tapping into the strengths of each individual on the team, a neurodiverse workforce can be more productive and efficient. Deloitte research suggests that teams with neurodivergent professionals in some roles can be 30 percent more productive than those without them. Better employee retention: When organisations embrace neurodiversity, it creates a more inclusive and welcoming environment leading to higher employee satisfaction and retention rates. Enhanced customer relationships: A neurodiverse workforce can help an organisation better understand and meet the needs of diverse customers, leading to improved customer relationships and increased sales. Attracting and retaining neurodiverse employees To ensure the success of neurodivergent workers, Deloitte suggests the following three approaches: Revisit the hiring process: Consciously hire from diverse sources and consider how the hiring process can be made fairer by reducing artificial intelligence or natural human bias. The interview process may also require tweaking. Consider moving from abstract questions to accessing specific skills and experience, and do not assume that everyone will connect the dots the same way. Create a conducive work environment: Everyone has different working styles, but managers should consider how individuals work best and what accommodations can be made. This may be as simple as adjusting communication styles, providing workplace mentors, or considering how flexible work policies can be expanded. Provide tailored career journeys: Many organisations do not have specific policies to support neurodivergent talent. Clearer policies ensure that everyone understands them in the same way, and unspoken rules that some neurodivergent workers might otherwise miss should be codified. Tailored career paths should therefore recognise the goals, capabilities and strengths of the individual – whether neurodivergent or neurotypical. The halo effect What’s clear is that what organisations do to provide an inclusive environment for their neurodivergent workforce can have a halo effect on the entire workforce. These ‘universal accommodations’ are adjustments that benefit all employees, jobseekers or customers and make the workplace a better, safer, more inclusive place for everyone. Andrea Dermody is a diversity and inclusion consultant at Dermody

Strong employer demand and higher earning potential for accountants    Accounting bodies congratulate Leaving Cert class of 2023; welcome 27% increase in those taking accounting in last five years    Friday 25 August – The body representing professionally qualified accountants in Ireland has said it is vital that accountants remain on the government’s Critical Skills Occupations List. Its call comes as it responds to the Department of Enterprise, Trade and Employment’s public consultation to review the eligibility of occupations on this list. The list is subject to regular review to ensure it reflects shortages of critical skills required for the proper functioning of the Irish economy. The Consultative Committee of Accountancy Bodies - Ireland (CCAB-I) is the representative committee for Chartered Accountants Ireland, the Association of Chartered Certified Accountants (ACCA), the Institute of Certified Public Accountants in Ireland (CPA Ireland) and the Chartered Institute of Management Accountants (CIMA). Its 43,500 members work across industry, professional practice, and the public sector. Commenting, Crona Clohisey, Tax & Public Policy Lead, Chartered Accountants Ireland said, “The accountancy profession plays a pivotal role in delivering professional services and advice to all sectors of the Irish economy, but presently most firms in which CCAB-I members operate have active vacancies that they are unable to fill. There is a critical shortage of accountants with audit experience; and a deficiency of accountants with practice experience of all types, including tax, data analytics, consultancy, and sustainability.  “The accountancy profession plays a pivotal role in delivering professional services and advice to all sectors of the Irish economy, but presently most firms in which CCAB-I members operate have active vacancies that they are unable to fill. There is a critical shortage of accountants with audit experience; and a deficiency of accountants with practice experience of all types, including tax, data analytics, consultancy, and sustainability.  “In the larger firms in particular, over half of new recruits filling vacant positions for experienced hires are currently being sourced from non-EEA countries due to a significant shortage of suitably qualified EEA-based candidates. Therefore, the inclusion of accountants on the Critical Skills Occupations List helps to meet ongoing capacity shortages.”  CCAB-I notes that the problem will be compounded by global trends and challenges. The Corporate Sustainable Reporting Directive (CSRD) will bring all quoted and large companies (as defined) within scope of a new set of sustainability reporting and assurance requirements from 1 January 2024. In addition, Ireland is bidding to host the new European AMLA (Anti-Money Laundering Authority), and if successful, there will be a considerable demand for accountants with AML and Combatting Terrorist Financing (CTF) skills. Building the talent pipeline CCAB-I is engaged with the National Apprenticeships Office (NAO) on the potential creation of a new national professional accountancy apprenticeship to facilitate the entry of school leavers into the profession on an “earn and learn” basis. It is also liaising with the Department of Education on the reform of the outdated Leaving Certificate accounting syllabus as part of wider efforts to attract candidates into the profession.  There are 16,500 students studying to become accountants in businesses and firms around Ireland, and in addition to strong demand from employers, there is continued strong earning potential, with newly qualified Chartered Accountants receiving an average salary package of €58,967 in 2022. Commenting Brian Feighan, Chair of the CCAB-I Working Group on Leaving Certificate Syllabus Reform said;  “Looking at the results for Leaving Certificate Accounting, it is really encouraging to see a 27% increase in those taking the subject since 2018, and an increase in those taking higher level. But this increase in popularity at second level is not feeding through to sufficient take-up of places on accounting courses in third level and further education.  “We have long highlighted that students are being dissuaded from pursuing accounting as a career choice because of the outdated Leaving Certificate accounting syllabus. We are engaged with the Department of Education to prioritise the introduction of a new specification for Leaving Certificate Accounting which will better reflect the role of the accountant in today’s workplace.  “A huge amount of work is being done by the CCAB-I at second level to attract students into the profession. I would say to students receiving their exam results (and their parents), that employer demand for accountants is extremely strong. Salary levels for qualified accountants reflect this demand and the vitally important roles that accountants perform in all organisations. There have never been more ways to enter the profession, be it directly from school, or after third level. This demand continues to grow and so too does the range of opportunities.” Read the CCAB-I submission in full here.

Revenue has issued notices to employers and agents via the ROS inbox facility  with further information on the new Enhanced Reporting Requirement introduced in Finance Act 2022.  Revenue intends to hold information sessions on the new reporting requirement in the coming weeks. The sessions will provide an overview of what will need to be reported to Revenue.  A link to Eventbrite will issue to employers and agents advising where they can register their interest in attending one of the information sessions, which are to run from late August to mid-November. We will keep you updated on the proposed sessions as more information becomes available. Further information on the reporting requirement can be found on the leaflet.

This summary AML Alert Russia Sanctions – Trade Sanctions Circumvention has been produced by the Accountancy AML Supervisors’ Group (AASG) from an extract from the Department of Business and Trade Notice NTE 2023/08: Russian sanctions – Trade sanctions circumvention. The Department of Business and Trade issued notice NTE 2023/08 to prevent the undermining of trade sanctions, export controls, and other restrictive measures designed and implemented in response to Russia’s invasion of Ukraine. Awareness of the risk and obligations in relation to sanctioned goods is an important first step for those working in the accountancy profession so that they don’t become party to the trade sanctions circumvention. Direct trade between the UK to Russia has fallen significantly since sanctions were introduced. However, Russia will seek to procure restricted goods via other routes. As such, there are risks around displacement of trade and diversion of goods to Russia. Businesses, and their accountants, should ensure that they consider these risks as part of their due diligence. This summary AML Alert highlights the key risk indicators. For more information click here. 

HM Treasury (HMT) has issued a consultation on the Reform of the Anti-Money Laundering and Counter-Terrorism Financing Supervisory Regime Consultation. This consultation offers stakeholders the opportunity to provide their views on the future of AML regulation and supervision, and, in particular, which of the four options proposed would most improve the regime. The consultation closes on 30 September 2023. Chartered Accountants Ireland will be submitting a response. Model 1: OPBAS+ The first potential model would involve no structural change to the regime. The Office for Professional Body AML Supervision (OPBAS), the oversight body, would be given enhanced powers to increase the effectiveness of the AML supervision undertaken by the Professional Body Supervisors (PBSs). Model 2: PBS Consolidation Model 2 would likely see either two or six PBSs retain responsibility for AML/CTF supervision. There could be either one accountancy sector supervisor and one legal sector supervisor, both with UK-wide remits, or one accountancy sector supervisor and one legal sector supervisor within each jurisdiction: England and Wales, Scotland, and Northern Ireland. Model 3: Single Professional Services Supervisor (SPSS) The third model would see a single body supervise all legal and accountancy sector firms for AML/CTF. It may also supervise some or all of the wider sectors currently supervised by HMRC. This body would most likely be a public body, unlike the PBSs. Model 4: Single Anti-Money Laundering Supervisor (SAS) Under this model, all AML/CTF supervision in the UK would be undertaken by a single public body. The major difference between this and previous options is that the Financial Conduct Authority and Gambling Commission would also stop supervising firms for AML/CTF compliance. HMT has organised two roundtables for accountancy firms and practitioners regarding HMT’s consultation on the future of the supervisory system and are inviting as many firms as possible to attend the roundtables to discuss the supervision reform consultation. There will be roundtables on two dates. Firms who would like to attend should sign up for one of the two roundtables using the following links below: 31st August, 11 am - 12:30: https://www.eventbrite.co.uk/e/700132925427?aff=oddtdtcreator. 6th September, 14:00 - 15:30: https://www.eventbrite.co.uk/e/700229012827?aff=oddtdtcreator. If you have any questions about the roundtables, or problems signing up, please contact HMT directly at Anti-MoneyLaunderingBranch@hmtreasury.gov.uk.

Irish organisations face geopolitical tensions, pandemic aftermath and new work norms. Boards must intensify governance, risk and compliance focus for resilience amid rapid change, says Ivan O’Brien Irish organisations are operating in a rapidly changing business environment. The war in Ukraine, the lingering aftermath of the pandemic and the shift to new ways of working all give rise to unknown risks, including cybersecurity threats. Boards must respond with an intensive focus on governance, risk and compliance (GRC) to achieve organisational goals during increasing uncertainty. Boards should view these challenges as opportunities to verify the effectiveness of existing GRC arrangements, foster continuous improvement efforts and drive progress toward a holistic GRC management system environment that helps drive long-term value and resilience. Keep reporting on track The board’s role is to monitor management’s performance against the organisation’s strategic objectives and understand how risk and uncertainty impact the organisation’s ability to achieve those objectives. Regular, timely and comprehensive management reporting allows the board and the audit committee to continuously monitor the design’s appropriateness and the GRC systems’ effectiveness. The COVID-19 pandemic, in particular, has demonstrated the importance of GRC systems for addressing critical situations, such as health risks, business interruptions, breakdowns in supply chains and financial losses. As a result, organisations have had to act fast and, in many cases, rethink their operational resilience approach. Data breaches pose regulatory and reputational risks to Irish and European organisations. Organisations with insufficient security solutions to protect their systems, networks and data can be fined up to €20 million or 4 percent of their annual global turnover under the General Data Protection Regulation (GDPR). The need for integrated GRC systems Overall, the events of the last several years have highlighted the necessity for organisations to adopt integrated GRC systems to achieve organisational goals, effective emergency management and a culture of integrity during times of uncertainty. By adopting integrated GRC systems, organisations are more likely to respond and recover effectively from crises and transform potential problems into business advantages. Failure to adopt an integrated approach to GRC can undermine the board’s ability to provide adequate oversight on risk and controls and lead to potential exposures that could jeopardise the organisation’s ability to continue as a going concern. This needs to be supported by an effective exchange of GRC-related information within the organisation through a board risk or GRC committee, for example. There is guidance available to boards who wish to improve GRC performance. In April 2021, the International Organization for Standardization (ISO) published a new certifiable standard for compliance management systems – ISO 37301. The standard explains how organisations should implement GRC management systems to satisfy international legal norms and regulations. Implementing ISO 37301 provides assurance that risks are regularly assessed, business partners are screened, and the organisation has a working system to raise concerns. It is committed to improving its systems to deal with non-conformance. Boards can also use the COSO Enterprise Risk Management Framework to evaluate their organisation’s approach to risk management. Developed by the Committee of Sponsoring Organizations of the Treadway Commission, the principles-based framework enables boards to identify all the components of a comprehensive enterprise risk programme. Building resilience Regardless of the model employed, effective GRC management systems rely heavily on the expertise of the internal audit and risk management functions. The scale and increasing complexity of the current risk landscape demands knowledge sharing at every level of the organisation. Boards should, therefore, challenge management to invest in the resources and technological tools required to improve shared risk intelligence throughout the business, to build an even more resilient organisation capable of driving long-term value and withstanding the challenges that lie ahead. Ivan O’Brien is Consulting Partner and Head of Risk at EY

Amid fierce competition, businesses must harness the cloud’s potential cost reduction. FinOps aligns spending with goals, yet pitfalls in adoption must be sidestepped, advises Liam Cotter Cloud computing continues to revolutionise how businesses innovate and grow in today’s hypercompetitive global environment. While the race to the cloud has catapulted businesses into a new realm of speed and agility, few are cashing in on the cloud’s promise to drive down costs – and the challenges are mounting amid the proliferation of multi-cloud environments. The problem is typically a case of too much spending and too little oversight. Businesses are struggling to effectively manage a critical new resource vastly different from the legacy environment it replaces. There is no question that organisations need a radical new approach to managing their cloud spending. The answer? FinOps. With FinOps (the combination of ‘Finance’ and ‘DevOps’), teams from IT, finance and business units collaborate on data-driven spending decisions. Transparency is prioritised, and everyone takes ownership of their cloud usage. FinOps aligns cloud spending with business objectives and helps cross-functional teams work harmoniously to enhance financial control and predictability, reduce friction, and deliver products and services faster in today’s consumer-centric digital economy. However, there are five critical mistakes organisations make when embracing the power of cloud capabilities. 1. The lack of a clear, strategic vision that aligns KPIs with outcomes Success on the FinOps journey inevitably requires measuring, reporting, analysing and optimising cloud spending. Taking a strategic approach to FinOps means keeping objectives and key performance indicators (KPIs) front and centre at all times – continuously revisiting, adjusting and evolving them as required. Businesses should monitor and respond to new business data and make changes, particularly in today’s fast-evolving environment, where the rapid pace of change continues to accelerate. 2. Not understanding costs and trends at a granular level You can’t measure what you can’t see, making a precise, granular view of cloud costs and trends critical to your business. It’s not enough to know your cloud spend at any moment – positioning your business to manage and reduce costs continually is essential. Amid a lack of data that continually delivers timely cloud spend and usage insights, businesses often make significant cloud investments while unsure what they are accomplishing or how to manage costs. Observability is essential to success – gaining visibility into where your cloud spend is going, monitoring activity at a granular level, and responding as needed as workloads and objectives change. This visibility can empower your data teams with precise allocation, real-time budgeting information and accurate forecasting for cost governance. 3. Not using appropriate tools, technologies and tagging FinOps’ success, apart from calculating and gathering timely data, also requires visibility of assets through IT asset management and the use of appropriate tools, technologies and tagging, including automation capabilities. Unfortunately, many businesses with multi-cloud environments use tools and capabilities provided by their cloud vendors with little to no benefit. Improper and inconsistent tagging of resources and a lack of appropriate automation can hinder success. Trend-based forecasting is an appropriate method for simpler situations in which past trends will likely continue. It helps answer questions such as “What would monthly cloud spend be in a future month given the spending trend observed to date?” 4. The lack of collaboration between finance and engineering teams A successful cloud journey relies on FinOps and the engineering team working closely together. While FinOps can manage processes and budgeting, this will likely not prove successful if engineering doesn’t agree to take the right actions. Cross-training of teams and organisational change management to create a highly collaborative approach among diverse teams is critical for FinOps to deliver ongoing value. 5. Not taking action, communicating and optimising Your business may have the necessary metrics, tools and technologies for a successful FinOps journey and be well-positioned to identify problems as they arise. However, a strategic action plan is essential; one that provides appropriate guidelines that bring the required players together to understand the problem and its implications, manage the issue and set the course for a future strategy that can optimise processes and costs. An intelligent approach is to manage by the numbers. These are the components required to help build a governance programme that positions you to do so: Reports and dashboards: Ensure all stakeholders have access to appropriate reporting and dashboards for their role and provide rapid, at-a-glance views into current cost trends and forecasts. Resource hierarchy: Structure cloud resources in a resource hierarchy that is granular enough for management and cost allocation using folders, projects, tags, labels, etc. Budget alerts: Set budget notifications that are triggered automatically when resources or costs ramp up beyond a predetermined threshold to help prevent unexpected activity impacting budgeted spending. Automated actions: Configure automated actions to throttle resources or cap costs to help prevent unwanted activity and overspending. Standard reviews: Establish standard review cadences between IT and finance to review historical spending and develop future action recommendations. FinOps’ success requires bringing engineering and finance stakeholders together to plan, measure, report, analyse and optimise costs. It’s not enough to simply implement new tools, communicate a few expectations and occasionally meet for updates. A holistic operating model should be designed, implemented, orchestrated and evolve as new tools, techniques, ways of working and other factors emerge with time. Liam Cotter is a Management Consulting Partner at KPMG

As back-to-school season approaches, employers can aid parents with flexible work options that foster work-life balance and increased productivity, explains Gemma O’Connor The back-to-school season is nearly underway as kids and parents prepare for the new school year. This can be a busy time for working parents, particularly for parents of children facing a milestone like starting primary or secondary education. So, what can employers do to help staff balance their home and work lives? Communicate with your staff Most employees should be able to predict when they might need extra flexibility to help their children settle into their new surroundings. Different employees will have different requests depending on their child’s level of education. As each employee will have different requirements, there is no silver bullet for managing this situation other than to ensure that you listen to staff and make efforts to accommodate any supports they request. Consider flexible work options If an employee requests flexibility during back-to-school season, consider it and what solution might work best for both parties. Some solutions could include: Working from home on certain days; Early finishes/late starts on certain days; Compressed hours; and Staggered hours. While you have no obligation to grant requests for flexibility, a blunt refusal to accommodate working parents increases the likelihood of alienating employees. Employees who feel let down by their employer are also likely to spread the news of their bad experiences, resulting in reputational damage and hindering your recruitment and retention efforts. Treat people fairly If only working parents are granted flexible work options during the school year, you also risk frustrating employees who don’t receive comparable benefits just because they don’t have children. It’s important to avoid granting privileges to parents only. If you provide benefits to working parents based on promoting work-life balance, you should extend the same flexibility to staff who need to care for an elderly parent or a spouse who’s ill, for instance. If you operate your workplace on the basis that everyone will need flexibility at one time or another, all staff will buy in and the organisation will avoid employee unrest that could develop if only working parents enjoy flexible work options. Prepare for new workers’ statutory rights The Work Life Balance Miscellaneous Provisions Act 2023 has been partially in force since 3 July. Once fully in force, this new piece of employment legislation will introduce five statutory rights for employees to foster a better work-life balance and to support staff with caring responsibilities. In summary, the Act introduces the following rights: Five days’ unpaid leave for medical care purposes for parents of children under 12 and carers; Five days’ paid leave for victims of domestic violence; The right to request flexible working for parents and carers; The right to request remote working for all employees; and The right to breastfeeding breaks extended to two years from the date of the child’s birth. Employers should be ready to receive requests from employees in line with this employment law scheduled to come into effect in full this autumn. Find balance Recognising the needs of working parents during the back-to-school period is crucial for fostering a supportive and inclusive work environment. Working parents often encounter added responsibilities as schools reopen, from adjusting schedules to managing childcare. By understanding these challenges and providing flexibility, employers can mitigate stress, enhance employee well-being and maintain productivity. Acknowledging the unique demands of working parents (and extending the same benefits to non-parent employees) promotes a harmonious balance between professional duties and family responsibilities. Gemma O’Connor is Head of Service at Peninsula Ireland

The Institute has today published a new Technical Alert 'Technical Alert 05 2023 - Questions and answers on the Corporate Sustainability Reporting Directive and the European Sustainability Reporting Standards'. The Technical Alert provides members with some information about the Corporate Sustainability Reporting Directive (CSRD) and explains when and how members may be impacted by it. The CSRD is an EU Directive requiring certain companies to disclose information on their sustainability-related impacts. The directive aims to modernise and strengthen the rules about the type of environmental, social and governance (ESG) information that companies will have to report. Alongside the CSRD, the European Sustainability Reporting Standards have been developed, under which companies who are subject to the CSRD will have to report. On 31 July, the European Commission adopted the ESRS and they will come into force following their publication in the Official Journal of the EU. The first entities will report under the CSRD and ESRS for periods commencing on or after 1 January 2024.    

In the digital age, cyber threats redefine business acquisitions. Mark Butler explores four reasons for prioritising cyber security due diligence, ensuring informed decisions and resilience When considering the purchase of a business, it is essential to conduct a comprehensive assessment of potential risks. Technology risks, particularly cyber threats, have become increasingly significant in today’s digital age. Therefore, prioritising cyber security as part of the due diligence process is crucial to gain a complete view of potential risks, allowing you to make informed decisions and plan accordingly. There are four compelling reasons why a cyber security audit should be a priority in the due diligence process when buying a business. 1. Assessing the business’s technology infrastructure The technology infrastructure of a business plays a vital role in its operations. Cyber security due diligence provides valuable insights into the robustness of the existing infrastructure, including networks, systems, software and hardware. By assessing the vulnerabilities and weaknesses within the technology stack, you can better understand the potential risks and associated costs of upgrading or securing the infrastructure post-acquisition. This knowledge allows you to make informed decisions about the integration process and develop a strategic technology roadmap. 2. Safeguarding sensitive data During a business acquisition, you gain access to the target company’s data, including client information, intellectual property, financial records and employee data. Conducting cyber security due diligence allows you to evaluate the effectiveness of existing security measures that protect this sensitive information. Identifying vulnerabilities and potential data breaches early on can help you implement necessary safeguards and protect the integrity and confidentiality of critical data assets. 3. Mitigating financial and legal risks A cyber security breach can have significant financial and legal consequences for a business. By conducting due diligence, you can identify potential risks that may result in financial loss, such as data breaches, regulatory non-compliance or legal liabilities. Understanding these risks beforehand enables you to negotiate appropriate terms in the acquisition agreement, allocate resources for remediation, and potentially even adjust the purchase price to account for any necessary investments in cyber security. 4. Maintaining business continuity and reputation A successful business acquisition hinges on maintaining continuity and preserving the target company’s reputation. A cyber security incident can disrupt operations, damage customer trust and tarnish the brand image, resulting in financial losses and decreased market value. You can identify potential threats and develop a robust incident response plan by conducting cyber security due diligence. This proactive approach ensures that the necessary measures are in place to minimise the impact of any cyber security incidents and protect the business’s continuity and reputation. Cyber security has become an essential aspect of business risk management in today’s interconnected world. When buying a business, prioritising cyber security within the due diligence process allows you to comprehensively assess technology risks, safeguard sensitive data, mitigate financial and legal risks, assess the technology infrastructure, and maintain business continuity and reputation. The due diligence process is a critical time to ensure you fully understand all potential issues, especially technology, allowing you to address risks and, in turn, plan to deal with them proactively. Mark Butler is Managing Partner at HLB Ireland

In today’s entrepreneurial landscape, high-quality professional services, especially in accountancy, are in demand beyond the allure of technology ventures. John Carolan outlines key strategies to build a successful accountancy practice Technology businesses may seem the default entrepreneurial dream, but there is plenty of demand for high-quality professional services firms in today’s market too, especially accountancy. After all, even the tech founders need accountants. Building a thriving accounting firm requires strategic planning, consistent effort and a focus on client satisfaction. All Chartered Accountants know that accounting is about people as much as it is about numbers. If you’re thinking of going out on your own, there are a few key actions to take to build a successful practice. 1. Define your niche and value proposition Like in any marketing process, you must identify underserved areas and gaps in the market. Once you’ve established that, it is crucial to define your niche and develop a unique value proposition. Identify the specific areas of accounting in which you excel and target your marketing efforts towards those areas, allowing you to establish yourself as an expert in the field and making it easier to attract clients who are seeking specialised services. 2. Cultivate strong client relationships The cliché that “people buy from people” is true. Building lasting relationships with your clients is vital for the success of your accounting firm. Happy clients become referral partners and can play a big role in you building a profitable firm. Implement a client-relationship management system to track interactions, preferences and feedback. Clients who trust and value your services are more likely to refer your firm to others, contributing to the growth of your business. Invest time and effort in understanding your clients’ needs and delivering personalised solutions. It’s also vital to schedule regular check-ins with clients to discuss their evolving needs and deal with any issues. Regularly communicate with your clients, provide them with timely updates, and be proactive in addressing their concerns. Building strong client relationships will not only help retain existing clients but also attract new ones through positive word-of-mouth. 3. Embrace technology and automation Technology plays a significant role in the modern accounting landscape. To build an accountancy practice, it is essential to leverage automation tools to streamline your processes, enhance efficiency and deliver higher-quality services. Research and invest in accounting software that suits your firm’s needs and provides automation capabilities that integrate with other systems, such as payroll and invoicing, to improve accuracy and reduce manual errors. Automation can also free up your time, allowing you to focus on more value-added activities such as strategic planning and client advisory services. In addition, train your staff to use the software effectively to maximise its benefits and stay updated with the latest technological advancements in the accounting industry to remain competitive. 4. Develop a strong online presence Having a strong online presence is crucial for any business, including accounting firms. It’s also important to realise your clients are not going to compare you only with their experiences of other accounting firms. They’re going to compare you with their online experiences. A well-designed and user-friendly website serves as a platform to showcase your expertise, share informative content and attract potential clients. Invest in professional web design, ensure your website is mobile-friendly and optimise your website content with relevant keywords to improve search engine rankings. Remember to actively engage in social media platforms and create valuable content, such as blog posts or webinars, to establish yourself as a thought leader in the industry. 5. Invest in continuous learning and professional development To stay ahead in this evolving profession, it is crucial to invest in continuous learning and professional development. Future-proof yourself and your firm by staying up to date on relevant trends. Encourage your staff to pursue relevant certifications, attend industry conferences and seminars, and engage in ongoing training programmes. By staying updated with the latest accounting regulations, industry trends and technologies, your firm can deliver superior services and maintain a competitive edge. It’s also worthwhile to build your own group of trusted advisors of Chartered Accountants. There is a willingness to share best practices and a good chat in professional networks. And the tried and tested market intelligence you gain access to is worth its weight in gold. John Carolan is the founder of Solve Outsource

As businesses contend with rapid transformation introduced by artificial intelligence, learning how to lead and empower your workforce through the uncharted terrain of technological disruption is critical, says Patrick Gallen The world around us is changing at a pace that appears to be exponential at the very least. The inception of advanced artificial intelligence (AI) learning systems such as Open AI’s ChatGPT has allowed the technology to take centre stage on the world podium, not entirely for the right reasons. While presenting itself with a wealth of benefits, such as instant data and content generation, many fear that the uncharted growth of AI may pose risks to our way of living. Irrespective of views, however, one thing remains clear: the age of AI has begun, and it has already made its mark on the corporate workforce. ­ The advent of such technologies has already begun to disrupt businesses across all areas, from day-to-day internal operations to automating tasks that once took hours of calculation. As companies start to tread through these exciting times, their employees must be guided effectively through the change process. Support holistic learning In a recent podcast, Michelle Weise, author of Long Life Learning: Preparing for jobs that don’t even exist yet, outlined the main topics that prepare companies and their employees for industry changes that are or are yet to come to the fore. First, it is argued that firms should create a learning ecosystem that supports employees as holistic learners with a diverse education history, allowing them to better adapt to prospective change. Leaders must act as role models for their employees, allowing them to raise alternative viewpoints or spark debate before concluding a decision. Sharing views across all levels and offering constructive feedback can bridge knowledge gaps and strengthen employee rapport. Leaders should also use these opportunities with their employees to seek upward feedback, allowing them to identify how they can assist their workforce more effectively. Don’t fear AI Weise also outlines that firms should teach their employees to be “dangerous” enough to exploit emerging technologies to avoid falling behind. Take Nokia and Blackberry, two hallmark examples of companies that failed to adapt to change in time. With the emergence of advanced AI learning systems, companies and employees should challenge the technology, not fear it. Educating employees about the purpose of AI and its benefits will be vital to ensure a common ground between leader and employee. Workshops, seminars and upskilling will be critical to the change process. Understand your employees’ skillsets In addition, Weise discusses the importance of understanding your employees’ skills at a granular level. The abrupt introduction of ChatGPT has shifted the corporate mindset from “what we already know” to “what we need to know”. By gaining a deeper understanding of your employees’ competencies, firms can identify those more competent in tech and AI, allowing them to assist individuals who may struggle with the change process more than others. Firms should encourage their knowledgeable employees to take on a trainer’s role, allowing them to share their skillsets and competencies with other employees. Facilitating and promoting internal training with employees can create a continuous learning and development culture, further catalysing the change process.    With the rapid development of AI in the last several months, the corporate workforce has been turned on its head. The very way in which we work was transformed overnight, prompting urgent change at a global scale. Leading your workforce in a way that promotes understanding, cohesion and growth will help firms adapt to the uncertain world of AI and what lies ahead. Patrick Gallen is Partner of People and Change at Grant Thornton