The view from James Butler ACCA

GBW was established in 2010 following a merger of two firms based in Cork and Dublin. GBW is regulated by ACCA and is authorised to carry out financial audits in both Ireland and the UK. We offer full business advisory services and annual compliance to a wide variety of sectors. Our clients include firms in fintech, engineering, pharmaceuticals, food and drink, construction, retail, leisure and tourism, manufacturing and professional services.

As partner in the Cork office, my role involves supervision of work, communication and consultations with clients, business development and the day-to-day work of running an office. I bring over 25 years post-qualified experience to the position and specialise in both personal and corporate taxation and company restructuring, which involves some insolvency work. None of these functions would be possible without the support and commitment of the dedicated team that work with us. We place a lot of emphasis on continuous training, development and upskilling, and stay up to date on legislative or regulatory changes through regular participation in CPD courses and webinars.

My priorities over the last year have been to prepare the practice for the rocky road that lies ahead. When governments decided in early 2020 that the approach to the pandemic would include printing money, it was inevitable we would see inflation when society reopened and subsidies came to an end. Coupled with other macro economic factors such as the war in Ukraine and the strong dollar, this has added to price increases across the board. The lessons from the past are that you cannot beat inflation simply by chasing it. Our focus and priority as a firm is on delivering a quality service at a competitive price, and we continue to support our client base during the difficulties and uncertainties ahead.

Adding to that uncertainty is the challenge of the UK now looking set to enter a recession in 2023. In addition, a combination of soaring energy costs and general inflationary pressures on other cost inputs, together with the shortage of skilled staff in the labour market, will make things difficult for the SME base in Ireland in the short to medium term. It will be a very challenging time for the business advisor as well as the business itself and we expect some interesting times ahead.

Consumer trends have changed over the past decade and the pandemic years intensified the move online in how we shop for goods and services. This has resulted in the decimation of the high street as shops simply cannot compete and bear the high costs of running a commercial premises. Main streets with an endless array of cafes and charity shops are not good from a visual perspective and new ways should be found to encourage business operators to open shops and create a vibrant trading atmosphere. I think this is an area that government must support and need to act quickly before the internet kills off the ‘touch, feel and try on’ experience of shopping forever.

Given the changes and challenges of the decade so far, I’d like 2023 to be a year where we all take stock of how we use energy and manage our carbon footprint. We need to consider how we can employ the resources more efficiently. This is an ideal opportunity for us to become more creative and inventive and design new methods and sources of energy. We could be living in very exciting times in terms of discovering innovative ways to provide sustainable energy that doesn’t damage the environment. I think the accounting profession can play an important role in this area by making it mandatory that large companies and plcs disclose a note in their annual accounts about their contribution to the green agenda.

The most important business lesson I have learned in my career is to never look too far forward or too far back. We all have to plan for the future, but sometimes the best laid plans simply don’t work out for a variety of reasons. Business leaders must be flexible and able to adapt to the changes – and disappointments – that occur along the way.

I think the next five years will be very interesting as we enter into a new relationship with Britain. I can also see us developing a much closer economic link to the continent and this presents a unique opportunity for Irish SMEs to develop new and sustainable markets. Government must do more to make it attractive for our young graduates to invest their talents and skills here and to see Ireland as a place of opportunity offering career development. A vibrant, enthusiastic and skilled labour force is critical to sustaining our progress both economically and socially. ‘Mol an oige agus tiofaidh said’ [‘Praise the young and they will flourish’].