Accounting in Ireland: What does it mean?
Accounting has become an umbrella term for several species accounts. In general, it included all forms of accounting and their principal activities. Examples of forms of accounting are financial accounting, management accounting and tax accounting.
The most common form of accounting is financial accounting. Main activities related to financial accounting are drafting of reports about the financial performance of an enterprise and to present this. Companies of a certain size in Ireland are legally required to have a professional accountant to do the work for them. It is also customary that an accountant presents these reports to shareholders and other stakeholders.
Entrepreneurs choose to outsource various reasons for their accounts. It may be the size and complexity, but also the lack of knowledge and time for keeping proper accounting organised.
Accountant or bookkeeper
Often there is confusion about bookkeepers and accountants in Ireland. Is there a difference? Yes, accountants often maintain accounting for one person or institution. Accountants are usually for setting and checking accounts and records of larger companies. Both accountants as auditors have in common that they have to work very carefully.
Besides the difference in work, there are also differences in terms of training, competence and responsibility. And this is very important for you as an entrepreneur . They can explain to you exactly how your business is financially doing.
Generally you earn back the cost of a good accountant or bookkeeper. These financial specialists help you direct your accounting, will provide you with advice and advise you on various tax benefits. By outsourcing your bookkeeping you can focus on the important tasks within the company.
You can also ask your accountant or bookkeeper to determine whether you have tax debts. It could be that a bill inadvertently is not included in your tax return. The tax office devotes much attention to that. By declaring VAT debt and you can prevent your business from paying fines.
• You can watch the best of three factors for choosing the right accountant or auditor: price, quality and service they need to provide.
• Always ask for multiple quotes and make clear agreements about expectations to avoid disappointment.
• As a freelancer, you can also consider purchasing accounting software. This is often possible to keep your own records with limited knowledge.
Although the most common activities should be to provide transparency to the management of accounting, there have been scandals in the past. A well-known example is the Enron scandal in 2001, when the accounting department presented the financial performance of the company in a way that it looked better than it in reality was. When this came to light, this had major implications for the stock exchanges and the financial products that were being traded.
That’s why it is highly recommended to do research in advance for accountants and accounting firms in Ireland. There are many good ones out there in Ireland luckily who are knowledgeable and are ready to help with your financial challenges.
Tasks that you as a accountant from Ireland may work on are:
- Private and legal expertise
- Administrative organization and quality assurance
- Accounts of third parties to organize and conduct
- Advice on tax matters
- Representation of individual members in control
- Check the reliability of information prepared by the board of directors
- Preparation of relevant reports