Latest news with #CharteredAccountantsIreland
Irish Times
7 days ago
- Business
- Irish Times
One in four SMEs is losing employees due to housing crisis, says accountancy body
A quarter of SMEs have lost employees or prospective recruits due to the lack of affordable housing, an umbrella group for the accountancy industry has said. The Consultative Committee of Accountancy Bodies Ireland (CCAB-I) has called for a targeted tax intervention' to rectify the housing 'market failure'. In a pre-budget submission to the Department of Finance, the committee pointed to Economic and Social Research Institute (ESRI) forecasts that there would be no significant increase in housing supply this year and next. Cróna Clohisey, director of members and advocacy at Chartered Accountants Ireland (CAI), said Budget 2026 'should include tax measures to stimulate the development' of apartments, student accommodation, and independent living facilities. READ MORE She said the measures needed to be 'targeted, time-limited and regularly reviewed to ensure that they are cost-effective and do not repeat the mistakes of the past'. Ms Clohisey welcomed the chance to discuss the issue with the Government. CCAB-I has also urged the Government to reduce red tape for businesses. A recent CAI survey showed 57 per cent of SMEs cited regulatory compliance as the area they most needed help with from the Government. To do this, it suggested the Government introduce a single pay-and-file date for capital gains tax aligned with the annual income tax return. The body said the measure would 'alleviate the administrative burden of what is a low-yielding tax'. It has also urged the Government to commit not to increase the rate of employers' PRSI for the next four years in light of what it said was substantially higher employment costs, which Ms Clohisey said 'would go some way in trying to stem increasing labour costs'. Increases across all classes of PRSI are planned up to 2028, and the CCAB-I has called for 'consideration' of a reduction in the rate of employers' PRSI on minimum wage workers by 1.5 per cent to aid businesses with the impending start of pension auto enrolment. CCAB-I, an industry forum comprising the CAI, the Association of Chartered Certified Accountants and the Institute of Certified Public Accountants, also called for the replacement of real-time reporting of small benefits and expenses with monthly or quarterly returns, which would 'ease administrative burdens'. It also wants businesses to be allowed to provide staff with reasonable levels of hospitality while working without having to apply a benefit-in-kind tax charge. The accountancy body also appealed for a change to the research and development tax credit regime for SMEs to allow for the use of third parties to carry out R&D under the scheme.
RTÉ News
23-05-2025
- Business
- RTÉ News
Pamela McCreedy elected President of CAI
Pamela McCreedy has been elected President of Chartered Accountants Ireland, making her the first public sector professional in 17 years to take on the role. Ms McCreedy is also the first president to be elected since the Institute's historic amalgamation with CPA Ireland. Her appointment was confirmed at the 137th Annual General Meeting in Belfast, the first AGM the amalgamation took effect on 1 September 2024. With almost 40,000 members and 6,600 students across Ireland and internationally, Chartered Accountants Ireland is now the largest professional body on the island. Ms McCreedy is currently serving as Chief Operating Officer of the Police Service of Northern Ireland (PSNI) and previously held senior roles in the Northern Ireland Audit Office, the Northern Health and Social Care Trust and KPMG. Commenting on her appointment, Ms McCreedy said: "I am immensely proud that the Chain of Office is being handed over in Belfast. It's a privilege to lead the Institute at such a transformative time when the pace of change in our profession is matched only by the scale of opportunity ahead. "We must meet that change with integrity, insight, and purpose. I look forward to working with members across the island and abroad to strengthen our impact and build on our proud legacy." She also paid tribute to outgoing President Barry Doyle, commending his tireless efforts in leading the Institute through amalgamation, engaging with members, and abroad, and championing SMEs, emerging talent, and responsible innovation, including AI. Looking to the year ahead Ms Creedy said the implementation of Strategy 27 is a central priority. The Institute's three-year strategic framework aims to strengthen the profession's resilience, relevance, and influence. "Strategy27 is a bold and timely blueprint," Ms McCreedy said. "In a complex world of rising costs, geopolitical pressures, and technological acceleration, the trusted role of the Chartered Accountant is more important than ever. Our members are not just finance professionals they are ethical leaders, critical thinkers, and stewards of long-term value."
The Irish Sun
22-05-2025
- Business
- The Irish Sun
Financial strain impacting Irish businesses laid bare as costs increase hits 77 per cent of SMEs amid uncertainty fears
THE financial strain on Irish businesses has been laid bare as a survey has found costs have increased for almost 80 per cent of small and medium enterprises (SMEs) in the past six months. And staff costs are the biggest financial challenge faced by these businesses, according to the first SME Business Sentiment Survey from Chartered Accountants Ireland and GRID Finance. Advertisement The survey, which will now be repeated every six months, will measure and track the experiences, confidence and sentiment of a range of SMEs, including small accounting practices, doing business in Ireland today. The inaugural study found that nearly three out of four (77 per cent) of respondents say business costs have increased in the past six months. Staff costs are the biggest financial challenge affecting nearly two in five (37 per cent) SMEs surveyed. Small practices were particularly challenged by staff costs - meaning cost of salaries and other benefits and compensations - with half citing it as their single biggest financial issue. Advertisement Read more in Money Operational costs (24 per cent) and regulatory compliance costs (14 per cent) were the other biggest financial challenges facing SMEs, ahead of working capital management and access to funding. Some 57 per cent identified regulatory compliance as the area in which they most need government support, rising to 75 per cent amongst small practice respondents. Eoin Christian, CEO of GRID Finance, said: 'These findings align with our own research conducted earlier this year – rising costs, particularly staff-related expenses are creating significant pressure on Irish SMEs. "While these challenges are real, they also represent an opportunity for SMEs to take stock, streamline operations and invest in smart, sustainable growth strategies. Advertisement Most read in Money "At GRID Finance, we continue to advise our clients to be proactive by forecasting future cash flow needs, exploring flexible funding options and staying ahead of regulatory requirements like auto-enrolment. "We feel that it's vital that both Government and financial providers evolve in tandem with the changing landscape. 'BETTER PREPARED' "With the right supports and partners, Irish SMEs can not only weather this period of cost pressure, but emerge from it stronger, more resilient and better prepared for the future." Auto-enrolment, due to come into effect in January 2026, met with a muted response. Advertisement Only two in five (40 per cent) of respondents feel that they have been adequately informed of the steps needed to implement it in time for its planned launch. Cróna Clohisey, Director of Members and Advocacy at Chartered Accountants Ireland, said: 'The Government's announcement that it will defer the launch of auto enrolment to January 2026 is welcome, particularly in view of the feeling of unpreparedness many businesses expressed in this survey. 'MANY REMAIN VERY UNCLEAR' "Many remain very unclear as to what is expected of them in advance of the new system launching. "Over the next six months, it is imperative that Government embarks on a concerted communications and awareness campaign to bridge this information deficit and equip businesses with the support and guidance they need to make auto enrolment the success it needs to be." Advertisement The survey also revealed a significant gap between demand for, and uptake of government supports called for by SMEs: Tax relief or incentives – 40 per cent called for these, but only 16 per cent of total survey respondents report availing of them Access to grants or loans - 31 per cent called for these, but only 30 per cent of total survey respondents report availing of them Meeting energy costs – 28 per cent called for these, but only 14 per cent of total survey respondents report availing of them. ATTITUDES MIXED Attitudes to the effectiveness of the supports are mixed, which may go some way to accounting for the gap between demand and uptake: Five per cent feel supports for reducing regulatory and compliance burdens are effective. 22 per cent rate access to grants or loans as effective. 23 per cent believe supports for training and upskilling are effective. Commenting, Cróna Clohisey said: 'There is an evident mismatch between the need for supports and the uptake of those on offer. "In the case of tax reliefs and access to grants or loans for example, this may be attributable to a perceived lack of accessibility, particularly for time and resource-constrained SMEs who simply find the application process too cumbersome. Advertisement 'FURTHER STEPS NEED TO BE TAKEN' "While the breath of current Government supports in these areas is positive, further steps need to be taken to ensure that business reliefs such as these are not overly difficult to claim if their effectiveness is to be meaningfully felt by small businesses." Meanwhile, almost three in 10 (28 per cent) of those surveyed report their business profitability has increased in the past six months, while a similar number (26 per cent) report it has decreased. Small practice respondents reported greater stability, with 56 per cent saying profitability remained the same and only 15 per cent saying it has decreased. For small business respondents, 30 per cent reported decreased profitability in the past six months. Advertisement SENTIMENT NEGATIVE Despite the various economic headwinds facing the economy, there was a degree of optimism amongst respondents about their prospects for the coming year. Some 27 per cent of respondents forecasted their business to be either somewhat or significantly better off by this time next year. Overall, sentiment was more negative than positive however, with 36 per cent saying they will be worse off. This negative sentiment was also evident when it comes to the broader economic environment, with a majority (74 per cent) feeling less optimistic about the wider economy's prospects compared to six months ago. Advertisement Compounding this are ongoing tensions and uncertainty in global trade which have already impacted Irish business sentiment. Some 62 per cent of respondents report that their business operations have been impacted by global trade tensions and tariffs and only 14 per cent say they are prepared for a further escalation of such tensions. 1 A survey has found costs have increased for almost 80 per cent of small and medium enterprises in the past six months Credit: Getty Images - Getty
Irish Times
22-05-2025
- Business
- Irish Times
Costs have increased for almost 80% of small businesses in past six months, CCI survey says
In the last six months, 77 per cent of small businesses have seen costs increase, with staff costs most frequently noted as a cause, a survey has found. Small practices said they found coping with staff costs more challenging than their larger counterparts, with half of respondents noting it as the single biggest financial issue against an average of 37 per cent, according to the small and medium enterprise (SME) business sentiment survey. . The survey, conducted by Chartered Accountants Ireland (CCI) and business lender, GRID Finance, found that operation costs (24 per cent) and the costs of regulatory compliance (at 14 per cent) were the other largest financial challenges. The chief executive of GRID Finance, Eoin Christian, said this aligns with prior research, which found that 'rising costs, particularly staff-related expenses are creating significant pressure on Irish SMEs'. READ MORE Nearly three-quarters (74 per cent) of small businesses are less optimistic about the economic future than they were six months ago, with 62 per cent of respondents reporting that their business operations have been impacted by global trade tensions or tariffs. Only 14 per cent of SMEs feel prepared for a further escalation of tariffs, and 36 per cent of respondents forecast their business being worse off this time next year. Against this backdrop, 28 per cent of small and medium size businesses reported increased profitability in the last six months, but nearly the same number, 26 per cent, reported that profit had decreased. Within that sample, smaller scale companies saw greater stability, with more than half of respondents noting profitability had remained the same as the year prior. Just 40 per cent of respondents feel adequately informed about auto-enrolment, which comes into effect in January 2026. CCI's director of members and advocacy, Cróna Clohisey, welcomed the decision to defer the launch of the process until the new year 'particularly in view of the feeling of unpreparedness many businesses expressed in this survey'. 'Many remain very unclear as to what is expected of them in advance of the new system launching,' she said, calling for the Government to conduct an awareness campaign to address the 'information deficit'. Ms Clohisey also raised an 'evident mismatch between the need for supports and the uptake of those on offer' highlighted by the findings of the survey. While 40 per cent of SMEs had called for the introduction of tax relief and incentive schemes, just 16 per cent of respondents had availed of them. A similar gap existed with help meeting energy costs among the nearly 300 respondents from organisations with fewer than 250 employees.
Irish Independent
22-05-2025
- Business
- Irish Independent
Four out of five SME say costs are rising
Smaller organisations were particularly challenged by salary costs, other benefits and compensations – citing it as their single biggest financial issue. Chartered Accountants Ireland and Grid Finance – an organisation that finances SMEs – surveyed 300 people from across Irish businesses to find that a majority (77pc) said they have seen their costs go up over this period – four out of 10 expect to be worse off this time next year. SMEs also named operational costs (24pc) and regulatory compliance costs (14pc) as major financial challenges, just ahead of capital management and access to funding. More than half of the businesses said they needed more government support in regulatory compliance and understanding legal guidelines. There is an evident mismatch between the need for supports and the uptake of those on offer The survey also revealed a significant gap between the demand for incentives and the actual uptake of government supports by SMEs – with incentives for tax relief, grants and energy being availed by fewer people in comparison to the demand for it. Cróna Clohisey, Director of Members and Advocacy at Chartered Accountants Ireland, said SMEs found the process too difficult and inaccessible. 'There is an evident mismatch between the need for supports and the uptake of those on offer,' she said. 'In the case of tax reliefs and access to grants or loans for example, this may be attributable to a perceived lack of accessibility, particularly for time and resource-constrained SMEs who simply find the application process too cumbersome. 'Further steps need to be taken to ensure that business reliefs such as these are not overly difficult to claim if their effectiveness is to be meaningfully felt by small businesses.' The survey found mixed reactions to the question of profitability – around three in 10 businesses said their business profitability had increased, while a similar number report it had decreased. ADVERTISEMENT Smaller businesses reported greater stability, with more than half saying profitability had remained the same during this time. It also found that most local businesses are optimistic despite trade uncertainties – 27pc of respondents forecasted their business to be significantly better off by this time next year. Eoin Christian, Grid Finance's CEO, said businesses under pressure will need state support to work through cost challenges. 'Rising costs, particularly staff-related expenses, are creating significant pressure on Irish SMEs. While these challenges are real, they also represent an opportunity for SMEs to take stock, streamline operations and invest in smart, sustainable growth strategies.'
