When we think of wellbeing, we usually think physically and mentally but there is another important aspect to add to the mix, financial wellbeing. Financial wellbeing is a term used to describe our ability to confidently manage our money, how prepared we are for the unexpected, and how we can save and plan for the future. It is an aspect of wellbeing that is often overlooked, but financial wellness can dramatically impact our quality of life. Financial difficulties can impact anyone including accountants. Here we look at financial wellbeing, its impacts on our mental health, and how we can improve our financial wellbeing. Financial Wellbeing and Mental Health With the current economic factors at play, financial worries are a main concern for the vast majority of the population and financial worries can have a major impact on our mental health. While it is true money can’t buy happiness, multiple studies around the world show that finances are one of the most common causes of stress and anxiety, which can impact our health, work, relationships, and many other aspects of our life. According to research conducted by PWC in 2023, almost half of Irish consumers are concerned about their personal financial situation. A national survey carried out by Aware found that financial worries were the number one cause of concern with 57% stating it was impacting their mental health. Laya healthcare’s workplace wellbeing index found that of the one in four people who reported poor mental health, two-thirds cited financial concerns as the cause, more than any other problem. These few figures highlight just how prevalent financial concerns are and how much of a toll they can take on our mental health. Feeling anxious, experiencing low mood, or losing sleep if you are struggling to control your finances is a totally normal response but in the long term can have a devastating impact on our lives, even fuelling and escalating our financial trouble.    How to invest in your financial wellbeing If you want to ease money worries or simply want to feel more in control of your finances, there are thankfully many simple and easy ways to do just that. Spending sprees The first step is to look at your current spending habits and identify just where your money is going. By reviewing your bank and credit card statements, you can tally your outgoings and expenses. Categorise the type of spend into different groups, this can help you identify areas where you may be overspending and where you can make changes. We can all overspend sometimes or have weeks that are more expensive, but when it becomes a habit, it can be hard to break.  By tracking your expenses, you can get a better overall picture of your spending habits and triggers. Money aspirations Write down your financial goals and consider what you want to achieve in the short and long term, this could be clearing off a credit card, buying a house or building a rainy-day fund. Having financial goals give you a clear objective to work towards and can help keep you motivated to save and stay on track. Budget   Creating a monthly budget is a surefire way of getting control of your finances. Figure out the amount that goes on your essentials expenses and then budget for the week and month ahead. For help with this, there is a wealth of free online budgeting tools and templates at your disposal. In debt to you Once your budget is going to plan, if you have accrued any debt now is the time to begin clearing it. Sort your debt from the highest interest rate to the lowest interest rate and use any extra cash to begin clearing off these debts, starting with the higher interest rate and continue moving your way down the rates.   Saving grace It can feel like any money you earn is eaten up by expenses and there is simply no money left for saving. Even when money is tight, it is important to begin setting money aside for the future. If you don’t already, set up a savings account and transfer any remaining money over at the end of the month. Even if it is just small change. Or another approach, termed ‘paying yourself first’ is set up an automatic transfer of money into your savings account as soon as you get paid.   Seek advice If financial troubles persist despite your best efforts, you may consider seeking external financial advice. A financial advisor can view all aspects of your financial wellbeing with you and identify areas and aspects where you can make changes. Supports available to you A common preconceive notion is that financial professionals should be in good financial health due to their professional background. However, like anyone in society, accountants from all walks of life can struggle with poor financial wellbeing for a multitude of reasons. From the work of CA Support, we see the causes and impact financial difficulties have on chartered accountants. Perhaps a period of illness, unemployment or upheaval has created a financial burden and we know financial problems can often deteriorate quickly. If you are struggling with financial difficulties, CA Support provides emergency assistance to Institute members, students and families experiencing turmoil. Or if you are in a healthier position, you may consider donating to CA Support to help support members and families in our community who are less fortunate. Improving your financial wellbeing can take time and effort but by building small and healthy habits, you can alleviate money-related stress and anxiety. However, if you are struggling with any emotional toll, the Thrive wellbeing team is also here to help.

Julia Rowan answers your management, leadership and team development questions A long-standing member of my team works to a good standard, but does the bare minimum. She is retiring soon. She takes no part in social outings and at team meetings, both in person and online, she works on her computer, only lifting her head to respond to direct questions. I have new people joining the team soon and I don’t want her muddying the water. I’m afraid if I tackle this, she will ‘go sick’. She has done this before. My team is under huge and growing pressure. A. It is so easy to feel undermined by one person, so pay close attention to where your energy goes. It’s essential to prioritise creating a positive experience for your new joiners as well as the rest of the team.  During interviews, induction and early reviews with your new team members, communicate this by organising a team lunch, bringing treats to meetings or refreshing the team meeting format. Also, take a look at the agenda: What is discussed? Who gets to talk, present, discuss or consult?  If you decide to deal directly with the issue, remember her behaviour has evolved for a reason and, in her head, makes perfect sense. Whether it’s discomfort, disrespect, payback or self-protection, there is a message in her behaviour. It could be interesting to find out why she seems disinterested in engaging with the team.  You need to be genuinely curious – this can be hard when you feel undermined and anxious. It’s possible the team member may need help getting back into the group. Consider pairing her up with someone on a project, asking her to train a new team member, or finding ways to acknowledge her long service and experience. If you decide to discuss this with her, start with the context (which you have outlined in your question): she is retiring soon, new people are starting and pressure is growing.  For those reasons, you need everyone to be fully present to onboard new joiners, deal with important issues and prepare for the future. This means putting the work away for a while.  You can be firm, gentle and respectful in this conversation. She may give you a range of reasons for her behaviour – for example, she’s too busy, the meeting takes too long, it’s not interesting, it doesn’t concern her or she knows all this stuff already.  Don’t argue with her. Agree and go back to your request: “I know you are busy but I need you there. So, how can we make it a more useful meeting?”   Be sure to have an exit strategy ready to avoid going round in circles.  The request you are making to this long-serving team member is reasonable. If you receive an outright refusal, the stakes get very high (and we are firmly in ‘going sick’ territory).  Consider your options: Do you stick with the status quo? Insist she engages with the team? Ask her not to attend team meetings if she can’t pay attention?   Telling her, “I’d rather have you there than not there, but I’d really appreciate it if you were fully present,” might be the safest option and keeps the door open. Julia Rowan is Principal Consultant with Performance Matters Ltd, a leadership and  team development consultancy. To send a question to Julia, email julia@performancematters.ie

The ethical use of AI and how it is governed today and as it continues to evolve in the years ahead is top of mind for many in the profession. Accountancy Ireland asks three Chartered Accountants for their take on the ethics of AI Owen Lewis  Head of AI and Management Consulting KPMG in Ireland It is crucial for all of us in the profession to ensure the integrity and transparency of solutions driven by artificial intelligence (AI).  We must audit and validate AI algorithms to ensure they comply with regulatory standards and ethical guidelines. Monitoring systems for biases and inaccuracies is also crucial to ensuring that financial data and decisions remain fair and reliable. By providing independent oversight, we can help to maintain trust in AI-driven financial processes and outcomes for clients.  Where AI is used to inform large-scale decisions, it should be supplemented with significant governance measures, such as explainability, transparency, human oversight, data quality and model robustness and performance requirements. This technology is continuing to advance rapidly, and we need to be open to both its current and potential capabilities.  By putting the correct governance mechanisms and controls in place – beginning with low-risk test applications and building from there – organisations can adopt AI safely and obtain real benefits from its use. I am working with organisations to help them think through what AI means for them, develop strategies for its adoption, put the necessary governance and controls in place, scale solutions sensibly and ensure business leaders get real value from their investment.  Whatever their goal may be – more efficient operations, accelerated content generation or improved engagement with stakeholders – we help organisations decide if AI can help, and if it can, how to use it in the right way. >Bob Semple Experienced Director Governance and Risk Management Artificial Intelligence (AI) is one of the most misunderstood, yet transformative, technologies impacting the way we work today. Here are 10 essential steps Chartered Accountants should take to navigate the landscape of AI effectively. Take a leadership role – If we don’t take the lead, we risk missing the golden opportunity AI presents. Conduct an AI “stocktake” –According to a recent Microsoft survey, 75 percent of employees are already using AI. Identifying current AI usage within your organisation is essential. Assess the downside risks of AI – Legislative and regulatory requirements are exploding (e.g. NIS 2, the AI Act, DORA and more) and risks abound (AI bias, explainability, privacy, IP, GDPR, cyber security, resilience, misuse, model drift and more). Organisations must act on their AI responsibilities. Conduct a dataset stocktake – Just as the Y2K challenge was about identifying IT systems, today’s challenge is to catalogue all datasets, as these are crucial for AI functionality. Draft appropriate policies and procedures – Establish clear responsibilities and accountability for AI initiatives. Pay special attention to how AI impacts decision-making processes. Strengthen data curation – Implement new processes to improve how data is collected and used. Identify opportunities for the smart use of AI – Brainstorm and prioritise AI use-cases that can drive efficiency and innovation. Provide training – Ensure that board members, management and staff are all adequately trained on AI principles and applications. Manage the realisation of benefits – Safeguard against excessive costs and subpar returns by carefully managing the implementation of AI projects. Update audit and assurance approaches – Seek independent assurance on AI applications and leverage AI to enhance risk, control and audit processes. As we adopt AI, it is critical that we pay particular attention to distorted agency – i.e. giving too much agency to, or relying unduly on, AI outputs and doubting our own agency to make the most important decisions. Exercising professional judgement is the key to minimising the risks associated with AI and realising its benefits, and that surely is the strength of every Chartered Accountant. *Note: GPT4 was used to assist in drafting this article.   Níall Fitzgerald Head of Ethics and Governance Chartered Accountants Ireland Artificial intelligence (AI) is proving to be transformative, impacting competitiveness and how business is done.  Chartered Accountants Ireland has engaged with members working in various finance and C-suite positions, including chief executives, chief financial officers and board members, to understand how AI is impacting their day-to-day work.  One thing is clear. AI is being used in some shape or form in many businesses across the country.  In 2023, the Institute’s response to the UK’s Financial Reporting Council proposals on introducing governance requirements for the use of AI noted several governance mechanisms that are likely to be impacted by AI currently or in the very near future in many organisations.  We highlighted the focus on corporate purpose and how market forces, emerging threats and opportunities driven by AI, may challenge the purpose of an organisation and its long-term objectives.  AI may impact how organisations decide on their strategic focus in terms of how they deliver their product or service and, indeed, how their product or service is designed in the first instance.  It may also impact these organisations’ values as they consider how to deploy and use AI in an ethical manner. The EU AI Act, which enters into force on 1 August 2024 over a phased basis, introduces requirements for the development of codes of conducts, risk and impact assessments and staff training to ensure adequate human oversight around the use of AI systems within organisations. This has specific resonance for Chartered Accountants who are members of a profession bound by a code of ethics governing objectivity, confidentiality, integrity, professional behaviour and competence and due care. Chartered Accountants must now ensure that they understand how AI uses, analyses and then outputs data.  Organisations must ensure that any AI-driven information they share, and how they deploy the technology itself, satisfies principles of integrity, honesty and transparency.  Chartered Accountants are well-positioned, with their ethical mindsets, to ensure the integrity of AI systems, and their use within organisations.

As the “year of elections” continues to unfold, Ireland faces a changing global tax environment, but with change comes the opportunity to position the country as a beacon of stability for continued FDI. Cillein Barry and Susan Buggle dig into the details As a small, open economy, Ireland is a competitive location for foreign direct investment (FDI). However, we are also subject to the impact of changes to tax regimes globally, most notably those driven by the Organisation for Economic Cooperation and Development (OECD), the European Union (EU) and the US. Changes to the tax regime in the US, in particular, have an indirect material impact on Ireland’s attractiveness as a location for FDI.  This year has been cited as “the year of elections”, with roughly half the world’s population going to the polls in 2024. The outcome of elections across the EU and, later this year, in the US may serve to shape future tax policy impacting Ireland.  Here at home, though the Irish Government has denied claims of an early election in 2024, an anticipated “giveaway” budget on 1 October means an early Irish election remains a distinct possibility. The US presidential election and tax policy While the outcome of the US presidential election cannot be predicted with any certainty at this time, we do have some insight into the tax policy objectives of both the Democrats and the Republicans should they come to power this year.  In considering possible changes to US tax policy, it is important to note that the approval of tax legislation generally requires 60 votes out of 100 in the US Senate.  This means that one party must hold a large majority or, alternatively, there must be bi-partisan co-operation to approve any proposed changes to tax policy. Neither of these scenarios seems likely in the aftermath of the upcoming presidential election.  While tax legislation may also be passed by a simple majority using a process known as “budget reconciliation”, the relevant tax measures cannot increase the long-term deficit of the US.  In an era of limited bi-partisan co-operation, significant US tax reform is therefore unlikely, as it would require either a super-majority in the Senate or the introduction of tax measures regarded as fiscally neutral over the long-term.  Understanding the Tax Cuts and Jobs Act In 2017, then US President Donald Trump’s Republican administration introduced some of the most significant reforms to the US tax code in three decades under the Tax Cuts and Jobs Act (TCJA).  The key measures for US businesses were broadly designed to lower the US corporate tax rate to one more comparable with competitors among OECD member countries and to protect the US tax base. These included: Corporate income tax rate: a reduction of the US corporate income tax rate from 28 to 21 percent. Global Intangible Low-Taxed Income (GILTI): a 10.5 percent tax on a portion of the income earned by foreign subsidiaries of US companies. Foreign-Derived Intangible Income (FDII): a preferential rate of 13.25 percent for income earned by US companies outside the US on certain intellectual property. Base Erosion and Anti-Abuse Tax (BEAT): a minimum 10 percent tax on base erosion payments made by US entities to related parties outside the US. The TCJA was introduced using the budget reconciliation process at a time when there was a Republican congressional majority combined with a Republican president – not a single Democrat voted in its favour.  Having already introduced such significant reform, what more could the Republican side seek to introduce in 2025? In answering this question, it is important to note that a large part of the TCJA measures were temporary, with 25 of the tax cuts introduced under the Act due to expire in 2025. This includes a slated increase in the rate of GILTI (10.5% to 13.125%), BEAT (10% to 12.5%) and FDII (13.125% to 16.406%). The Republicans are likely to face pressure from US businesses to reverse these planned increases and preserve the impact of the TCJA.  However, the Republicans are also likely to face pressure to extend several individual tax cuts included in the TCJA, which together impact more than half of US households. Indeed, both Democrats and Republicans are in favour of retaining at least some of these measures. The Democrats’ tax proposals The Democrats’ preferred tax policy was outlined in March 2024 in Joe Biden’s “Green Book” budget proposals. These proposals seek to reverse many of the TCJA tax cuts and include: Increasing the corporate tax rate from 21 to 28 percent; Increasing to the GILTI rate from 10.5 to 21 percent; and A repeal of the preferential rate for FDII. To introduce such tax proposals under a new leader, the Democrats would likely require a significant majority, as it would be challenging to introduce such measures while balancing the books to achieve a fiscally neutral outcome.  US Presidential elections: the likely outcome Many US commentators predict a split government in the aftermath of the US presidential elections, with neither party controlling the House and Senate.  Marrying this with the complex procedures required to pass tax legislation and the political pressure to preserve tax cuts for individuals, the most likely outcome for US business taxation is little change to the status quo regardless of who will be elected as the new US President.  Though Republican rhetoric has centred on cutting the federal corporate income tax rate to 15 percent, this should be viewed in a similar light, although the threat of 10 percent tariffs and the EU’s response will need to be monitored closely.  The other key area to watch is US engagement with the OECD’s Base Erosion and Profit Shifting (BEPS) 2.0 tax proposals. Under Pillar Two of BEPS 2.0, this year has seen the most significant change in international tax in recent memory, with many countries, including Ireland, introducing a minimum 15 percent tax on the corporate profits of large multinational groups.  Despite positive indications from the US Treasury, achieving sufficient political support to introduce the Pillar Two proposals in the US has proved elusive. However, the mechanics of these rules will mean that US-headquartered groups are likely to be affected by the global minimum tax rules from 2026 onwards.  If Pillar Two plans proceed as anticipated, it remains to be seen how the US will react and whether the party in power will seek to introduce retaliatory measures.  Republicans sitting on the powerful Ways and Means Committee have already outlined proposals to impose an additional five percent tax rate each year on the US income of entities located in foreign jurisdictions applying the Pillar Two rules.  The outlook in Europe We have witnessed significant political developments across Europe in recent weeks, including the election of a new European Parliament in June and domestic parliamentary elections taking place in several neighbouring European countries, most notably France and the UK.  In July, Hungary took over its Presidency of the Council of the European Union and Ursula von der Leyen was re-elected as the President of the European Commission. EU commissioners and working groups will be appointed in the coming weeks. These developments will play a key role in shaping the future direction of taxation policy in the EU.  Recent years have seen the introduction of a swathe of EU-wide tax initiatives, including measures aimed at tackling tax avoidance (e.g. the Anti-Tax Avoidance Directive), measures to increase transparency (e.g. the EU public Country-by-Country Reporting Directive) and measures to introduce OECD BEPS 2.0 Pillar Two provisions across the EU via the Minimum Tax Directive.  While Pillar Two has progressed, work on the OECD’s other key initiative to reallocate a portion of the profits of the largest multinational groups to jurisdictions in which customers are located (known as Pillar One) is at best delayed, but more likely dead.   With progress on Pillar One potentially stalling, a renewed focus may be placed on introducing alternative Digital Service Taxes (DSTs), either unilaterally or on an EU-wide basis. In this regard, the current moratorium on introducing DSTs at an EU level is due to expire on 31 December 2024. EU-wide tax measures EU institutions are continuing to work on a range of other tax measures, including Business in Europe: Framework for Income Taxation (BEFIT), a proposal for a consolidated EU tax base that would be allocated to Member States, and the proposed “Unshell Directive” aimed at tackling the potential misuse of entities without sufficient substance for tax purposes. It remains to be seen which tax initiatives will get priority treatment under the incoming Hungarian Presidency of the Council of the EU, with its stated slogan – “Make Europe Great Again” – focusing on European competitiveness as a key priority.  This is likely to signal shifting sands ahead for EU taxation policies, particularly in the context of Hungarian Prime Minister Victor Orban publicly calling BEPS 2.0 Pillar Two “a catastrophic failure,” serving to dampen competitiveness.  EU Member States have also advised the European Commission to slow the pace of development of direct tax proposals, given the significant volume of measures introduced in recent years. Therefore, a more benign approach to tax policy is expected at an EU level for the foreseeable future. Shifting taxation policy: the Irish impact  In an environment of increasing uncertainty, it is worth bearing in mind Ireland’s unique position as an economic gateway for both Europe and the US.  While US investment in Ireland is well-publicised with more than 950 US companies located here, Ireland now also ranks as the ninth largest foreign direct investor in the US, employing about 100,000 people in the States.  Ireland is also the only English-speaking common law trade and investment gateway to the EU. Ireland’s competitive corporate tax rate and transparent and stable tax policies have been a crucial factor in attracting FDI. This tax policy has consistent cross-party support.  Other key factors include our highly educated and skilled pool of graduates, particularly in science, technology, engineering and mathematics (STEM), our clear and consistent regulatory environment in key areas such as data protection, and Ireland’s attractiveness as a place to live and work. Ireland must, however, guard against complacency. In a constantly evolving environment, it is essential that we focus on ensuring that Ireland remains a competitive and attractive location for FDI. This includes reducing the cost of doing business and facilitating access to talent.  On a global basis, tax competition remains alive and well and a new wave of incentives and subsidies is being introduced by competing jurisdictions.  Our regimes for attracting high-value jobs and businesses – particularly our research and development (R&D) tax credit, reliefs for intellectual property and international assignees – continue to be key pillars in this space.  With ongoing uncertainty within the EU and across the Atlantic, we now have an opportunity to position Ireland as a beacon of stability and a safe harbour jurisdiction for foreign direct investment. This opportunity must be grasped.    Cillein Barry is Tax Partner with KPMG  Susan Buggle is Tax Principal with KPMG

Joe Biden’s withdrawal from the US presidential race marked the departure of the last “Atlanticist” in American politics and Europe is ill-prepared for what lies ahead, writes Judy Dempsey  The decision by Joe Biden not to run against Donald Trump has upturned American politics. There are so many uncertainties about who will be elected as the next president of the United States on 5 November.  Until then, America will be preoccupied with domestic politics. It’s going to demand huge effort by the departments of state and defence to keep the focus on Ukraine, Israel and what is happening in the Middle East, not to mention China.   With the exception of Ukraine, Europe is a bystander, but Biden’s decision could change the transatlantic relationship.  Few European leaders, apart from French President Emmanuel Macron, understand how this fundamental shift in transatlantic dynamics could affect Europe’s defence, security and intelligence gathering.  Biden is the last “Atlanticist.” His career, experience in foreign policy and age made him a believer in the enduring bonds between the United States and Europe. Yes, his administration complained about Europeans not taking their defence or security seriously, but intellectually and emotionally, he is an Atlanticist.  Donald Trump cares little about Europe, the EU, NATO, or the idea of “the West”. Even if Europe increased its share of defence spending to NATO, it would never be enough. For Trump, Europeans are free-riders and unable collectively to think and act defensively. For him, this is Europe’s problem, not America’s. Just as Ukraine is not America’s problem either. If a Democrat wins the US presidential election, they will likely belong to the younger generation whose past has no connection with Europe and which is more attuned to the emerging competition between the United States and China, Russia and other countries resentful of America and what it represents.  This shift also has major implications for Europe’s security, its economy and future developments in Ukraine. Yet, Europe is not prepared for the changes taking place across the Atlantic.  The post-1945 era that was built on multilateral institutions, arms control and a confident West is ending, so what can Europe do to deal with such irreversible change?  EU Commission President Ursula von der Leyen wants Europe to have a Defense Tsar and a collective defense-spending policy. Neither is likely to fly – and not just because neutral countries would not buy into them.  Germany has rejected proposals to finance new defence purchases through joint borrowing, arguing that there is already enough industrial and research funding for defence.  On top of this, because defence is such a national issue, it is hard to see member states ceding any of this sovereignty to Brussels. The real issue here is Europe. The 27 member states can’t agree on which direction the union should take. More political and economic integration would make sense, but several countries want to regain more sovereignty at the expense of making Europe capable of speaking with one voice.   As the United States and the West decline, there is a chance for Europe to step in. Unfortunately, member states and EU leaders lack the courage to do what is needed.  Judy Dempsey is a Non-Resident Senior Fellow at Carnegie Europe and Editor-in-Chief of Strategic Europe *Disclaimer: The views expressed in this column published in the August/September 2024 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees, or the editor.

Chartered Star 2024 winner Evan O’Donnell talks to Susan Rossney, Sustainability Advocacy Manager with Chartered Accountants Ireland, about the future of sustainability in the profession Evan O’Donnell was recently named Chartered Star 2024, an annual designation recognising outstanding work in support of the UN Sustainable Development Goals (SDGs).   Run in partnership with One Young World and Chartered Accountants Worldwide, the aim of the annual Chartered Star competition is to celebrate the difference-makers in the profession who are helping to combat the climate crisis by bringing real, positive change to their workplaces and communities. As Chartered Star 2024, O’Donnell will attend the One Young World Summit, representing Chartered Accountants Ireland and Chartered Accountants Worldwide, in Montreal, Canada, in September. Here, he talks to Susan Rossney about his interest in sustainability and social responsibility. Tell us about your decision to become a Chartered Accountant. What attracted you to the profession? I loved accounting in secondary school – that “yes” moment when you know your inputs are the same as your outputs! My mother was a mathematics teacher, and my father was a banker, so figures are certainly in my DNA.  I studied accounting at University College Cork, but it wasn’t until I attended a careers fair that I understood the versatility of a career in accounting and the many doors Chartered Accountancy can open.  Have you always been interested in sustainability?  I’ve been interested in social responsibility from the time I was 16 when I travelled to India and worked with street and slum children in Calcutta.  Since then, I’ve volunteered for a range of charities, including Trócaire, Mary’s Meals, HOPE, Cork Penny Dinners, Pieta, Irish Guide Dogs for the Blind, the Irish Cancer Society and Breakthrough Cancer Research.  My interest in sustainability started when I led a sustainable gardening project at college. Volunteers completed training certificates and visited local nursing homes to assist the elderly residents in planting flowers and growing vegetables. It showed me what was possible. Since then, I’ve looked for opportunities to do more and was delighted when I got the chance to host a sustainability networking event at the Apple headquarters in Cork when I was Co-Chairperson of Chartered Accountants Student Society Cork. What initially sparked your interest in becoming a Chartered Star? I heard about the Chartered Star competition during the first year of my training contract with PwC.  In 2020, I was fortunate to be part of a fantastic network, the Irish FinBiz Task Force, with 30 finance and business professionals across Ireland. It had been founded by two previous Chartered Stars and, as the years went on, more Chartered Stars emerged from the network. I was on the network’s SDG Awareness Team where Patrycja Jurkowska (2019 winner) provided us with great insight and knowledge on the topic.  I saw how the competition opened many doors for my colleagues, and I felt it was an opportunity to meet amazing ambassadors of sustainability, be part of a knowledge platform and share key learnings with my network.  I am very proud to be part of the Chartered Accountants Ireland Chartered Star family! What do you see as the greatest sustainability-related impacts, risks and opportunities for Ireland?  Ireland faces significant sustainability challenges, but also has many opportunities. Climate change is causing more extreme weather, threatening infrastructure and agriculture. Biodiversity loss, due to urbanisation and intensive farming, is reducing ecosystem services like pollination and water purification. Resource depletion, including water scarcity and soil degradation, is harming agriculture and water supplies. Economic risks include the vulnerability of agriculture to climate variability and potential negative impacts on tourism from environmental degradation.  Dependence on fossil fuels poses a risk as global policies shift towards renewables.  Social risks involve health issues from heatwaves and pollution, as well as displacement due to coastal erosion.  Regulatory risks stem from the high costs of complying with EU environmental regulations. However, through all this, there are significant opportunities.  Renewable energy development, particularly wind and marine energy, can reduce fossil fuel dependence and create jobs.  Sustainable agriculture, including organic farming and agroforestry, can boost biodiversity and resilience.  Green technology and innovation, such as circular economy practices and smart grids, can enhance sustainability and efficiency.  By implementing robust policies through the Climate Action Plan and participating in the EU Green Deal, Ireland can lead in global sustainability efforts, attract investment and build a resilient future. Where do you see opportunities for young professional Chartered Accountants in sustainability? Chartered Accountants have many opportunities to help meet sustainability challenges. We can leverage our skills in financial analysis and reporting to enhance transparency in sustainability metrics, ensuring that companies’ environmental and social impacts are accurately reported and assessed.  We can specialise in sustainability assurance, auditing environmental, social and governance (ESG) reports to provide stakeholders with credible information. We can advise businesses on integrating sustainable practices into their operations and strategies and identify cost-saving measures through energy efficiency, waste reduction and sustainable supply chain management.  We can also influence policy by working with regulatory bodies to shape sustainability standards and frameworks.  Additionally, we can drive innovation by supporting the development of green finance products, such as green bonds and sustainable investment funds.  By combining our financial expertise with a commitment to sustainability, young professional Chartered Accountants can play a crucial role in fostering sustainable economic growth and addressing global environmental challenges. Can you tell us about your sustainability role with PwC? I always had a passion for sustainability, and I wanted to incorporate this into my day-to-day life at PwC.  During my time with PwC Cork, I worked in the Assurance Department specialising in high-technology and pharmaceutical company audits along with pensions and grant engagements.  In 2019, while on placement, I was on the Corporate Social Responsibility Committee, and worked under the food pillar of PwC Ireland’s Sustainability Council, focusing on food waste reduction initiatives primarily in PwC offices around Ireland.  I also became an SDG Champion with PwC by completing ‘The Sustainable Life School’ course. This course inspired me to apply for, and later become, a Climate Ambassador earlier this year, where I have equipped myself with education about climate. What does being named Chartered Star 2024 mean to you?  Being the Chartered Star, an ambassador of Chartered Accountants, means representing my profession and country on a global stage.  Having been selected to attend the One Young World Summit in Montreal this September, I am deeply honoured and grateful to have this opportunity.  The Summit brings together young leaders from around the world to discuss and address critical global issues, including sustainability, innovation and social impact. I am committed to making both my profession and my country proud by actively participating in the Summit, sharing insights and learning from global peers. This unique experience will enable me to bring valuable knowledge and innovative ideas back to my colleagues, fostering growth and development within our community.  I look forward to leveraging this platform to highlight the pivotal role of Chartered Accountants in driving sustainable and ethical business practices, ultimately contributing to a better future for all.

Lindsay Russell, a Partner with EY Northern Ireland, talks to Liz Riley about the evolution of her career, professional inspiration and constant thirst for knowledge, variety and challenge in her working life  My interest in accountancy was first sparked as a teenager. During school holidays, while doing my GCSEs and A Levels, my parents encouraged me to gain valuable work experience, which led to a job with WHR Accountants in Armagh under the tutelage of Ken Harrison, one of the founding partners.  WHR had a fantastic team of about 15 who took me under their wing and got me started with the basics of accounting.  After writing out many cheque journals, cash books and extended trial balances manually, I learned that “balancing” numbers gave me a great sense of satisfaction. Something clicked and I realised that accountancy was a career I wanted to pursue.  This summer job continued for four years and greatly influenced my decision to study accountancy at university in Scotland. After graduating, I was fortunate to secure a position with EY Northern Ireland in 2004 and completed my professional exams in 2006. It has been a real privilege to become a Chartered Accountant, specifically an auditor in practice.  As auditors, we are afforded an insight into so many successful organisations across sectors and industries and are in a unique position to support and work with talented individuals through complex and interesting transactions and business initiatives.   The trust we provide as accountants, auditors and business advisors is something that is often underplayed, but is vital to the capital markets and the success of organisations, and I still consider myself lucky to say I play a part in that.  Almost 20 years later in this profession, and I have not looked back. Championing women In those 20 years, I have seen significant changes in the gender profile of our profession, particularly in the last decade.  I am pleased to have been part of this change personally, but what I am really proud of is being able to champion and sponsor female talent within our profession to ensure that others can share in the experiences and opportunities I was afforded early in my career.  As a female partner and leader, I am acutely aware of the responsibility I have in championing other women in our profession. In the long term, my goal is that we create a profession, industry and world in which such an active focus on gender diversity is no longer essential because we have created an environment where opportunities are afforded equally to all people and are fulfilled based on the right person for the role, regardless of gender or any other characteristics.  However, I know we still have some way to travel to make this a reality. I fully appreciate and understand that we must create the right environment for all our talented people to flourish.  For example, organisations must take parental responsibilities and flexible working into consideration. They must do all they can to provide a workplace in which working mothers know they can have a sustainable and rewarding career. I would also highlight that, while gender diversity is important to me as a female leader, I believe that diversity of thought, background and experience is the basis for excellence in any team.  It is not only the experiences of diverse groups, but also their willingness to be open to the views and experiences of others, that creates the best and highest-performing teams, delivering the most for clients and helping to build a better working environment for all.  Embracing education in your career I believe professional development is achieved via a combination of formal learning and on-the-job development.  Formal learning is very important, particularly in our changing regulatory environment, and I find it useful to check my own Continuing Professional Development (CPD) monthly and quarterly to ensure I am on track for compliance.  However, I also find on-the-job learning critical in putting all the theory we learn into practice, and developing the wider skill set that is so valuable and necessary for the accountants of today and tomorrow.  We are living in a world in which technology and the way we work is continuing to evolve, particularly with the advent of generative artificial intelligence. My advice is to embrace change and learn as much as you can from those around you.  Lastly, I would say it’s important to remember that the accountancy skill set remains as valuable today as it ever was and will remain a key part of the workplaces and businesses of tomorrow.  The fluidity of work-life balance There is no magic answer to work-life balance. For me, work-life balance is something that is fluid and needs to be reassessed and flexed regularly and continuously.  I learned an important lesson early in my career: your work-life balance will have ebbs and flows depending on what is going on in both your work and home life.  It is important to be flexible at times and, at others, to know and stand by your “non-negotiables.”  I recognise that at certain times I will have busier and more demanding times in the office, and that it is important to stay focused for the benefit of my teams and my clients.  Equally as important is the need to have planned downtime. I am protective of this downtime when it arrives so I can make sure my family and friends get a fully committed version of me. Everyone will have different styles and different ways of working. My advice is to ensure you understand your own style. Know your peak times, take time out and ensure you communicate clearly with those around you, both personally and professionally, about your work-life balance needs.  Stepping outside your comfort zone When I look back over my career, I can see that my biggest development has come about when I have embraced new opportunities (or challenges) and have been pushed out of my comfort zone.  It is very easy to stay comfortable, but trying new things, seeking out new learning opportunities and working with different people and teams is what accelerates our development, and ultimately, our career prospects.  My career advice is to say “yes” and give it your all. You will always be amazed at where it can take you! It is sometimes the tasks or roles that you think you didn’t want – or didn’t think you would be good at – that are the ones that help you progress and move on to your next role.  I also like to remind people that variety and new opportunities can come from staying in the same job or profession and do not always require drastic change.  I have been with EY for almost 20 years now, which feels increasingly rare in a world where new opportunities are everywhere. I am proof that you can have a varied career with many different roles and opportunities all with the same employer and within the same profession. My final piece of advice is to be honest and true to yourself. Someone once told me to hold a mirror up and be honest with myself about my strengths and weaknesses and what I ultimately want from my career.  I realised early on that I get easily bored and need variety in my work. I know that I am competitive, hard-working and need to feel I am adding value. I recognise that this combination of attributes means I often work too hard.  However, it also means that I am continuously rewarded with challenging opportunities for development, which keeps me motivated and stimulated.  Everyone in our profession must figure out what works for them and remember that their career path, regardless of direction, should be unique to them. Your career doesn’t have to replicate what anyone else before you has done, or what those around you are doing today.

Cormac Lucey explores the misunderstood roots of Ireland’s FDI success and questionable management of surging tax revenues against the backdrop of rising state spending Two important aspects of Ireland’s multinational success story are generally misunderstood.  The first concerns the low-tax strategy that has been the key reason many multinationals have located in Ireland.  As Professor Frank Barry of Trinity College Dublin revealed in his essay “Foreign Investment and the Politics of Export Profits Tax Relief 1956”, this low-tax strategy resulted from then Taoiseach John A. Costello overruling the Department of Finance and forcing an idea promoted by the Department of Industry and Commerce into the Budget.  Underlining the precariousness and capriciousness of life, this strategy didn’t begin to really function until the 1990s.  The second aspect of our multinational story, not generally understood, is how utterly dependent our economy is on American business.  While it is widely known that more than 85 percent of the state’s corporation tax revenues come from multinationals, their contribution to other tax headings is not so well-known.  When you consider multinationals’ 55 percent share of Ireland’s income taxes and 54 percent share of VAT – and apply this lower 54 percent rate to other tax headings – you will see that the multinational sector contributes over 60 percent of the State’s total tax revenues.  How well is the state managing the resulting surge in tax revenues? Well, it’s all being spent, and then some.  According to the Irish Fiscal Advisory Council’s Fiscal Assessment Report published in June 2024, “Excluding excess corporation tax receipts, a deficit of €2.7 billion (0.9% GNI) is forecast for this year. This comes despite a strong economy, with record high employment and historically low unemployment. The question arises: if underlying surpluses are not being run now that the economy is strong, when would they be run?” The quality of much of this spending is highly questionable. The epicentre of rampant State spending growth is occurring in healthcare. A recent Department of Health report analysed hospital activity and expenditure between 2016 and 2022.  It reported a 3.8 percent increase in overall activity, compared with an inflation-adjusted rise in expenditure of 45 percent (nominal rise of 68 percent) and a 29 percent increase in staffing numbers. The Department of Health badly needs budgetary incontinence pads. Or maybe members of the Irish public service simply need to learn how to manage.  Consequence-free management is the key obstacle to effective budgetary control. When staff are treated the same regardless of whether they perform extraordinarily well or extraordinarily badly, should we be surprised when mediocrity results?  The Republic’s governing political class is happy to bask in the reflected glory of multinational-induced prosperity. However, according to the 2023 annual report from the IDA, Ireland’s inward investment agency, the global foreign direct investment landscape is becoming “increasingly challenging and complex.”  And, if he becomes the next US President, Donald Trump plans to significantly undermine Ireland’s attractiveness to US multinationals by putting a 10 percent tariff on US imports. Even though it accounts for 69 percent of employment, Ireland’s domestic sector of small and medium-sized enterprises (SMEs) is the orphan of this story. SMEs need targeted tax incentives along the lines of those outlined by Deloitte’s Kim Doyle in the Accountancy Ireland newsletter Briefly. The SME sector also needs a systematic programme to reduce the regulatory burden imposed upon it. Under the guidance of Michael Diviney, Chartered Accountants Ireland recently published Reducing Red Tape, a detailed position paper showing just how that could be done.  The instinctive mindset of government – that ministers are in charge of a great national trainset they can play with at will – flies in the face of the reality that policy decisions involve tricky trade-offs not amenable to facile headlines.  Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland *Disclaimer: The views expressed in this column published in the August/September 2024 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees, or the editor.  

Ireland’s medium-sized businesses are more optimistic than their global peers but a more ambitious approach is needed to deliver their expectations, writes Patrick Dillon Ireland’s medium-sized businesses are uniquely optimistic in their outlook ahead of the upcoming US presidential elections and in the wake of the recent elections in France and the UK.  Just 17 percent see geopolitical disruptions as a barrier to growth, compared to 42 percent in the Eurozone and 49 percent globally. This confidence follows through in the main findings among the Irish respondents to our latest Grant Thornton International Business Report (IBR), which captures insights into the outlook of 10,000 mid-market firms across the globe.  Our Irish IBR respondents are optimistic about the outlook for the Irish economy in the 12 months ahead. Close to three-quarters (73%) of the Irish medium-sized companies we surveyed predict a positive future. The findings are reflective of the resilience of Irish companies that have had to navigate a polycrisis in a short period of time, trading through the pandemic, cost-of-living challenges and disruption to global supply chains. This is not just a case of looking at the world through rose-tinted glasses, however. Irish medium-sized companies are anticipating a healthy bottom line over the next year.  Close to three-fifths of the Irish companies we surveyed predict a rise in revenues (57%), profits (59%), and headcount (52%) in the 12 months ahead. While it is fantastic to see such a strong sense of confidence among this cornerstone of the Irish economy, if the last few years have taught us anything, it is that none of us knows what’s around the corner.  To this end, the companies that will continue to succeed in the future will be those that remain hyper-focused on staying one step ahead of the competition – and this is where our International Business Report makes for slightly more concerning reading.  There is a significant difference in attitudes to innovation among Irish firms compared to their international peers. Just under a quarter (24%) of Irish businesses are preparing to increase investment in research and development over the next twelve months compared to three-fifths (60%) of their global peers.  We found a similar gap in levels of planned technology investment, with just under half (48%) of Ireland’s medium-sized firms budgeting for an increase, compared to 67 percent globally. Ireland is a small pool compared to the ocean that is the global marketplace. If Irish firms are to realise their ambition and potential, then they need to look to new markets.  Investing in innovation is key to unlocking these opportunities, whether it is leveraging digital channels to reach customers in every corner of the world or developing tailored products or services for a specific customer segment internationally.  A confident economic outlook is great, but it doesn’t put money in your pocket. To paraphrase Benjamin Franklin, an investment in innovation pays the best interest.   Patrick Dillon is Head of Deal Advisory with Grant Thornton Ireland *Disclaimer: The views expressed in this column published in the August/September 2024 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees, or the editor.

Revisions to International Standard on Auditing (Ireland) 600 will result in higher-quality group audits, but more work will be required to deliver this benefit, writes Noreen O’Halloran The International Standard on Auditing (ISA) (Ireland) 600 has been revised. Issued by the Irish Auditing and Accounting Supervisory Authority (IAASA), the revised standard applies to the audit of group financial statements.  Effective for periods beginning on or after December 15, 2023, these revisions aim to enhance audit quality and address inconsistencies in practice. They bring some challenges, however.  The purpose of ISA (Ireland) 600 Revised (the revised standard) is to enhance the quality of the audit delivered, by ensuing better co-ordination and understanding  between the group auditor and the auditor of a group component.  Audit committees, along with group and component management teams, will also experience changes in how the group auditor conducts the group audit.  Roles and responsibilities Various definitions are amended within the revised standard. These include the definition of a component, which now includes entities, business units, functions or business activities, or some combination thereof, determined by the group auditor for the purposes of planning and performing audit procedures in a group audit.  This concept of the auditor’s view of a component marks a departure from the previous standard. Under the previous standard, a component was identified by the group auditor based on the level at which the group or component management prepared the financial information.  As a result, audit committees can expect to see some changes in the identification of the components for the purpose of the group audit. The group engagement partner is responsible for the work performed by the engagement team. The definition of “engagement team” within ISA (Ireland) 600 Revised includes component auditors.  Therefore, it must be clarified that the group engagement partner along with members of the engagement team – other than component auditors (i.e. the group auditor) – will take responsibility for the nature, timing and extent of the direction and supervision of the component auditor’s work and the review of such work.  To fulfil this obligation, in addition to engaging with group management, the group engagement partner will need to be more involved with component auditors and, potentially, component management.  The definition of “significant components” has been removed. This means that there is no longer a set quantitative threshold above which a significant component’s financial information must be audited.  Rather, a more risk-based approach is required. Emphasis has been given to the consideration of the risk of material misstatement at the assertion level of the group financial statements associated with components.  This will mean that more decisions are made by the group auditor in terms of the level of work that is to be performed by each component and by whom this work will be performed. Component auditors may, therefore, expect changes to the scope of their work compared to previous years. The definition of group financial statements has been clarified. The standard focuses on the concept of a consolidation process. This includes the aggregation of the financial information of business units and is wider than the definition of the consolidated financial statement in financial reporting. As a result, audit committees may see a change in the approach to auditing an entity with multiple branches or divisions, as this is now considered to be a group audit.  The standard emphasises the need for a comprehensive approach to auditing all components contributing to group financial statements, ensuring that the audit covers all relevant aspects of the group’s financial reporting. The clarity regarding the definition of a component (including the removal of the significant component), the involvement of the engagement team and the responsibility of the group auditor, may enhance the quality of the audit delivered.  However, additional time will be incurred by the group auditor as a result, who must now ensure that all component auditors are adequately supervised.  The changes to the definition of a component will provide greater flexibility for the group auditor when identifying components. However, this may result in the entity’s management receiving requests for information regarding components that were not previously in scope. Risk-based approach One of the most significant changes in ISA (Ireland) 600 Revised is the alignment of the standard with the principles in ISA (Ireland) 315 Identifying and Assessing the Risks of Material Misstatement.  This requires the group auditor to focus more on identifying and assessing the risks of material misstatement at the group level when planning and performing the group audit, rather than simply defaulting to a full scope audit at the component level.  The alignment to ISA (Ireland) 315, and the requirement for the group auditor to take a more active role in identifying and assessing the risks of the material misstatement of group financial statements, will assist in improving audit quality.  It will also require more time, resources and effort on the part of the engagement team, however, and particularly the group engagement partner.  The group auditor will be heavily involved in identifying and assessing the risks of material misstatement at the group level and planning the approach to the entire audit, rather than delegating this to the component auditor.  The additional time and effort required will be most evident in large groups with components in multiple locations. The entity’s management may also receive additional, or more granular, requests for information from either the group or component auditor to support the group auditor’s risk assessment procedures.  Communication and documentation ISA (Ireland) 600 Revised reinforces the need for two-way communication between the group auditor and component auditor to ensure that both parties are in sync.  The group and component auditor together comprise one engagement team, so a collaborative environment is essential. The revised standard also emphasises that all ISAs, including ISA (Ireland) 230 Audit Documentation, must be applied in a group audit.  In applying ISA (Ireland) 230, the group auditor must demonstrate in their documentation how they are directing, supervising and reviewing the component auditor’s work.  The group auditor must consider the scenarios where access to either individuals or information at the component auditor level is restricted and how these restrictions are overcome. Enhanced documentation and two-way communication from the beginning of the audit will improve audit quality.  However, it will also require more co-ordination and collaboration, which may be challenging, particularly for complex groups with many components.   Early communication will be essential to addressing the changes in scope, higher levels of group auditor involvement and in identifying any challenges to this involvement, including restrictions on sharing audit documentation electronically or at all, or restrictions on travel to a specific area.  To fulfil their supervisory role, the group auditor may need to navigate various obstacles, including different time zones and language barriers.  Other practical challenges may include how to ensure that component auditors are part of the discussions required by the other ISA (Ireland) standards, including the fraud discussion required by ISA (Ireland) 240. Professional scepticism The revised standard clarifies how the requirements in ISA 220 (Revised) Quality Control for an audit of financial statements – particularly the importance of professional scepticism – applies to achieving audit quality in a group audit.  The group auditor must exercise professional scepticism by remaining alert to inconsistent information from component auditors, component management and group management, regarding matters that may be significant to the group financial statements.  The group auditor must take appropriate actions when inconsistencies are identified. In addition, the group auditor must emphasise the importance of exercising professional scepticism to each of the engagement team members, including the component auditors.  Exercising professional scepticism at the component level may result in the group engagement partner needing to engage more extensively with component auditors and component management throughout the audit.  Crucial supervisory role The revisions to ISA (Ireland) 600 introduce more requirements for group auditors and their component auditors. This requires increased resources, enhanced communication, increased documentation and a greater emphasis on professional scepticism.  Audit committees and group and component management will also see an increase in the level or type of information required from the group or component auditor so that the group auditor can fulfil their requirements in accordance with ISA (Ireland) 600 Revised.  The need for greater group auditor involvement in the planning and risk assessment stages, and the two-way communication required, highlights the importance for all auditors to understand the new requirements and ensure that they have the skills and resources needed to meet them.  To align with the revised standard, group and component management may see a change in the type or nature of information requested by auditors.  The supervisory role the group auditor plays is crucial to the execution of high-quality group audits.  Both the group auditor and the component auditor will need to be familiar with the new requirements and align their audit methodologies accordingly, while group and component management should be willing to provide the additional information required by the auditor.  While the revisions to ISA (Ireland) 600 will undoubtedly increase the workload of both auditors and group and component management, it will result in higher quality audits. This will, in turn, generate greater benefits to the public interest and may avoid high-profile group audit failures in the future.   Noreen O’Halloran is Principle, Audit Quality and Professional Practice Department, KPMG Ireland

The CSRD has changed the sustainability outlook for SMEs reliant on business from larger entities in scope of the directive. Susan Rossney outlines what they can do now to keep ahead of the curve  Chartered Accountants Ireland is a global organisation with close to 33,000 members in positions of influence across society and the economy. With fewer than 250 employees, however, the Institute is also a small to medium-sized enterprise (SME). These SMEs are not often discussed in the context of climate change, but their combined carbon footprint is, on average, five times greater than that of their large corporate counterparts, according to CDP, the not-for-profit climate-disclosure organisation.  The European Commission estimates that SMEs contribute more than 60 percent of all greenhouse gas (GHG) emissions produced across Europe.   SMEs tend not to be at the forefront of sustainability discussions either, which have long been treated as the purview of larger accounting practices that have clients with sustainability reporting obligations.  This is expected to change with the implementation of the Corporate Sustainability Reporting Directive (CSRD), which introduces an obligation on (mostly) larger businesses to report on the carbon emissions of their supply chain partners.  As part of this, the focus of attention has moved to the SMEs in these larger companies’ supply chains, caught in a so-called ‘trickle-down effect’. These small businesses are expected to find themselves asked by key customers for climate-related information, often for the first time, with the risk of losing valuable contracts if they fail to do so. Despite this, Irish businesses – particularly SMEs – were found to be reluctant or unable to decarbonise, with 86 percent of Irish businesses having no set commitments or targets to decarbonise, and just 11 percent measuring and tracking performance on total CO2e emissions, according to a 2022 study.  Chartered Accountants Ireland aims to provide leadership in this area for businesses in Ireland, first leading by example in our own SME operations. Here are some of the steps we have taken to act on our central ethos, “for tomorrow, for good”. In 2020, we kicked off an Environmental and Climate Impact Project (ECIP) focused on managing carbon emissions, resources (water, paper, catering supplies, etc.) and waste.  We commissioned an energy auditor registered by the Sustainable Energy Authority of Ireland to carry out an internal energy audit for us, and we are working through their recommendations. Measures we have taken to reduce our carbon footprint include: Beginning the process of splitting our water and premises heating systems; Switching to light-emitting diode (LED) lights; Installing a roof net to prevent seagulls eating the insulation;  You can’t manage what you don’t measure, so in 2022, we invested in locally sourced emissions tracking software.  In 2022, we recorded a 13 percent decrease in carbon emissions on our 2021 baseline, and we recorded a 39 percent year-on-year reduction in carbon emissions at our Dublin headquarters in December 2023.   Similarly, there are many steps SMEs can take to reduce emissions and otherwise engage in sustainability practices. Our online Sustainability Centre signposts a variety of resources available to support businesses in these efforts.  Small steps make a big difference, but it’s a marathon not a sprint. My advice is start now, get help, measure – and keep going.  Susan Rossney is Sustainability Advocacy Manager with Chartered Accountants Ireland

Rory Mulvaney talks us through a multi-faceted career that has taken him from law to accountancy and on to entrepreneurship as the founder of his own corporate and compliance service firm  Belfast-born Rory Mulvaney, FCA, is founder and Managing Director of VANTRU, an independent provider of corporate and compliance services with a presence in Ireland, Britain and the Netherlands. Established in 2017 under the name Mulvaney, the company underwent a rebrand in 2023 to become VANTRU and employs a 20-strong team comprising accounting, tax and legal professionals. Here, Mulvaney tells Accountancy Ireland about the evolution of his career and path to entrepreneurship. Tell us a bit about yourself. Why you decided to become a Chartered Accountant? I was born in Belfast and my family then moved to Newry where I grew up and went to Abbey Grammar School. I now live in Rostrevor with my wife, Seana and our four children, Jack, Rory, Olivia and Charlie.   Starting out, I studied law at Queen’s University Belfast and, from there, undertook a Diploma in Legal Practice at the University of Law before joining Bank of Ireland and then McCartan Turkington & Breen in Belfast. At that stage, I decided that a career as a Chartered Accountant would give me the knowledge needed to one day become a business leader and I went on to train with John MacMahon & Co in Northern Ireland and undertook further training as a Tax Consultant with KPMG in Dublin. Looking back now, are you glad you made the decision to qualify as a Chartered Accountant?  Yes, absolutely! I wouldn’t say I had a career plan starting out, but I’m naturally ambitious and driven to succeed, so I always had a desire to do well and to do something meaningful with my life.  When I first decided to qualify as a Chartered Accountant, I could see that it would give me the freedom to work anywhere in the world for any type of organisation and possibly, one day, for myself.  After qualifying, I moved into industry with Bruce Shaw, now known as Linesight, a global cost management consultancy firm, where I was Group International Tax Manager for five years. What was it that prompted you to set up your own business? My first industry role with Bruce Shaw was inspirational. Working with a successful Irish business that was growing at pace and expanding overseas gave me confidence and a wealth of experience. In 2017, I decided to set up as a Corporate Service Provider (CSP) and established Mulvaney as part of Trustmoore, a global corporate services firm which had worked with Bruce Shaw on corporate services outside Ireland.  Trustmoore viewed Ireland and the UK as strategic jurisdictions for business growth. We established a two-year co-operation agreement after I pitched to the founders in Amsterdam in 2016. This was a pivotal moment in my career and a valuable opportunity to learn about the inner workings of the business. I was able to travel to global offices, attend internal academies and spend lots of time with Trustmoore’s founder and owners. Come March 2019, I established Mulvaney Corporate Services. I wanted to launch Northern Ireland’s first locally established, independently owned corporate services provider and to lead the market by providing a unique set of corporate and compliance services to foreign organisations across key jurisdictions. Today, we remain the first and only company of our kind in Northern Ireland. That makes me very proud. What prompted you to rebrand the business to VANTRU in 2023? We mainly service clients with foreign direct investment needs, both inward and outward, for trading and investment purposes, as well as clients in the capital markets space for whom Ireland is a relevant and attractive jurisdiction. As the company has grown, we have had opportunities to work with some high-profile global organisations and last year, seven years after our initial launch, I felt that the time was right to establish an identity and brand that would enable us to compete at the highest levels. What do you regard as your proudest achievements as a business owner? I am extremely proud of the fantastic team of qualified professionals who have chosen to work with VANTRU. It is also a massive achievement for me personally that VANTRU is recognised by many highly respected law firms, auditors, tax advisors and asset managers. We are in the very fortunate position of having financial institutions and CSP firms in other jurisdictions refer work on to us.  What are some of the most important lessons you have learned over the years?  Someone once told me: “people buy from people.” As a business owner, surrounding yourself with great people who can bring something unique to the table is key. In my wider career, I have had the privilege to work for and alongside people who have taught me valuable lessons. John MacMahon is a well-known Chartered Accountant from County Armagh who has built a fantastic all-island practice and property empire. John was always generous with his time, giving me plenty of valuable advice when I was starting out in my own career. Brendan O’Mara, Derry Scully and Gerard Campbell of Bruce Shaw also stand out. A natural entrepreneur, Brendan was the Founding Partner of Bruce Shaw in Dublin over 40 years ago.  Derry was the Group Chair during my time with the firm. He was both technically gifted and able to maintain a lot of key client relationships globally, including with some of the world’s biggest companies. I worked very closely with Gerry, as CEO, and learned a great deal from him also.  In my own journey, I have found myself adopting a lot of their habits, especially Gerry’s, with his little black books and knack for “getting things done”.  In the world of corporate services, I have learned a lot from two Dutchmen – Trustmoore founder Steven Melkman, who is an inspirational and charismatic leader, and Jan Jaap Kuipers, the former CEO of the BK Group.  Who do you most admire right now in business or public life? In business, it has to be Phil Knight, founder and former CEO of Nike Inc. I recently read his memoir, “Shoe Dog,” and was very inspired by his story. I found myself relating to his experiences, especially in the early days. In sport, despite being a Manchester United supporter, it has to be Pep Guardiola. I also read his biography, “Another Way of Winning,” by Guillem Balagué. Guardiola is so much more than just a football coach.  How has the role of the accountant evolved since you first joined the profession? The role of the accountant has been impacted by ongoing advances in technology, including the introduction of new and improved accounting software and cloud-based tools, which automate routine tasks such as bank reconciliations.  We are now also starting to see the impact of artificial intelligence, which will remove the need to carry out routine tasks for finance departments and accounting teams, such as data entry, reconciliations and generating reports.  The daily work patterns of accountants have also changed dramatically. At VANTRU, all of our employees have adopted hybrid working with some team members working remotely on a full-time basis. We recently hired a new team member who is based in Germany! There are many positives to this way of working for our business. We are moving towards a fully cloud-based business model, which will mean that we can hire people from anywhere in the world.   What are your plans for VANTRU in 2024 and beyond?  We have fulfilled most of the goals outlined in our 2019 business plan and we are in the process of agreeing our strategic plan for the next five years with the help of John-George Willis, our Non-Executive Director.   These plans will centre around improving our brand awareness, IT systems, processes and people. We will also consider growth by acquisition if the right opportunity arises.  Put simply, I want our company to continue to grow. I am very involved in developing new business opportunities and, every day, we talk to prospective clients from all over the world.  I am really looking forward to what we can achieve over the next decade.