New year, new focus
The end of the year is usually a time for looking back, but for businesses it should be about looking forward to the next 12 months. Here are our suggestions for what you should be thinking about as we approach 2022.
For many entrepreneurs the festive period is the best chance they get all year to think about new ventures or opportunities. If you are thinking about starting a new business, make sure you choose the legal and financial structure carefully.
Most people either opt for sole trader status or set up a private limited company. The attraction of a limited company is that shareholders are only liable for their investment in the business, although the company is obliged to file an annual return even if it is not trading.
Most new enterprises are set up on a sole trader basis because it is the fastest and cheapest way of getting up and running. However, if the business grows rapidly and/or has intellectual property it wants to protect, switching to limited company status as soon as possible is probably the best option.
Supporting local businesses
There are many reasons why it makes sense to do as much business as possible with other Irish companies. According to ISME, every €10 spent locally on Irish products generates more than €40 of benefit to the local community in terms of employment.
Have you thought about whether you could source some finished goods and/or raw materials closer to home to reduce shipping costs and the potential for delays, for example?
Using locally-based professional services providers – such as accountants – also helps retain skills and experience in Ireland at a time when we need it the most.
When business is taking up so much time it can be tempting to put off sending tax return details to your accountant until the last minute. However, this is not the best way of ensuring that your returns are accurate and you don’t end up paying too much (or too little).
If you get your information in order and to your accountant before the end of year rush, you are likely to be able to get a better price for the work.
Cutting it fine puts everyone under pressure and by submitting information close to the deadline you are also giving your accountant the absolute minimum amount of time to spot potential issues or errors.
Accounting for success
Finally – and perhaps most importantly – why not make 2022 the year you move your accounts into the digital age?
Throughout the year we have provided various examples of how using a cloud based accounting package such as Big Red Cloud can give you a continuous, up to date view of how your business is performing and the state of your finances.
The data generated can also be used to flag up potential issues early, giving you time to formulate strategies to overcome challenges.
We hope this blog provides a few suggestions for business resolutions that will leave you better prepared for whatever comes your way over the next 12 months. All that is left is for us to wish you a Merry Christmas and a prosperous New Year.