5 big challenges faced by Irish accounting firms today

5 big challenges faced by Irish accounting firms today

It’s an obvious fact that running an accounting firm is hard. Yet, for Irish Accounting firms specifically, there is a wide range of regular difficulties and challenges. Indeed, the Irish economy is relatively robust, however, that doesn’t mean everything’s fine. High rents and the cost of living with steady income growth have all negatively affected the funds of numerous Irish families as well as organizations. It has implied that prospective clients might not have the good cash flow that they used to have, and this can influence organizations significantly.

Shockingly, the financial support expected to run an organization has soared. Overhead expenses, insurances, property lease, and administrative compliance are currently significant points to worry about. Below we have talked about some challenges faced by Irish Accounting Firms in the present time.

The COVID-19 pandemic

Soon we forget the last year, the better it will be. Nobody might have anticipated how life in 2020 would change so radically, and with zero pandemic knowledge, the Irish economy is battling. 

In September the Irish government affirmed that the nation is facing recession, contracting by a record 6.1% in the second quarter of last year. 

Continuous lockdown, shortage of staff, remote working and many other things affected the productivity of small accounting firms in Ireland. Moreover, their clients started cancelling contracts in order to save some money. 

Brexit 

Many questions are still not answered around the UK’s takeoff from the EU and what it will mean for Irish business sectors. Not exclusively are rules and guidelines actually being worked out, however, issues related to funding are a migraine as well. 

Recently it was declared that Irish residents who decide to live in the UK will be considered as ‘settled’, so will have no residency or work grant necessities. They can likewise move openly between the two countries which include the Common Travel Area (CTA), similarly as UK residents.

Rise in Technology 

It is one of the biggest challenges faced by Irish Accounting firms. Advanced technology and Innovation proceeds to create new trends in the accounting industry. Machine learning and Data Analytics are major points of discussion among accountants. As per Flexera: 94% of accounting firms have started using cloud accounting. 

Also, with the rise in innovation, bookkeeping firms must protect themselves on the Internet. Cybercrime specifically will be a danger to bookkeeping firms, because of the touchy information that organizations have on customers, and steps must be taken to guarantee that there is adequate IT security set up to secure customers’ information.

Challenge of Automation 

As AI becomes further developed, the methodology of the work that accountants and bookkeepers perform will change. It is right to say that in five years’ time, most simple tasks that were frequently left to junior bookkeepers, like data entry, may turn out to be completely automated by accounting software.

There will probably consistently be a requirement for a certified accountant to investigate a client’s tax file or records, especially when an issue emerges that is different. Accountants are moving towards advisory roles.

Staff Shortages

For Irish Accounting SMEs, recruiting, preparing and keeping great employees can be a tough exercise. Frequently when they hire, the most brilliant, generally qualified and most determined colleagues don’t stay after some time as they’re enticed away by big contenders. With Brexit approaching, these firms may well lose more staff who presently need work licenses to remain.

Closing Note

Accountants have confronted numerous difficulties in recent years. Taking care of a small organization can be very tiresome and directors will in general have an enormous number of duties to deal with. With the rise in overhead costs, it has become more troublesome for these small firms to retain in the market. 

Outbooks is a leading accounting outsourcing company in Ireland that helps you in saving 60% of your overhead expenses. You can effortlessly provide your work to our certified accountants and expect great returns and accurate results. Get in touch with us at: 

+44 (0) 330 057 8597

info@outbooks.com

Also read: How To Find A Good Certified Bookkeeper In Ireland?