An effective bookkeeping system doesn’t have to be complicated, but it has to be right bookkeeping service for your business.
You need to keep track of what you earned and what you spent, how much cash you have, and what you will receive and pay out in the future. You may want to quickly know who has paid already or who still owes you, and how much.
Your suppliers may not be only ones to whom you owe money.
- If you have employees you will need to pay them and, also, account for Pay As You Earn (PAYE), Pay Related Social Insurance (PRSI), and Universal Social Charge (USC).
- If you’re selling goods or services, and have reached certain sales thresholds, then you may be liable for Value Added Tax (VAT).
Bookkeeping is not difficult but it does need to be regular and accurate. Artisan Accountant provides bookkeeping services that are expedient and efficient. Whether, you want to use your own in-house systems or go with those recommended, I am happy to work with all.
You are required by the Revenue to keep full and accurate records of your business. You must hold these for six years. You are advised to keep all your records in order and hold on to all invoices, receipts, bank statements, etc.
The best way to keep track of everything is to have an accounting system suited to the size of your business. For a small, straightforward, business this might be to use a spreadsheet. If your business is larger you may need a bookkeeping package. Whether you are interested in outsourcing bookkeeping services or want to do it yourself, I can help you pick the best package for your business.
If you need help with bookkeeping it can be carried out at your premises or even remotely. Tasks include:
- Input of Purchases, Sales and Credit Notes, and all other required processing.
- Reconciliations to ensure all accounts such as bank account balances are correct.
A good accounting system will result in peace of mind, knowing your records are straight for the Revenue. The data can also be used to keep on top of your business and understand the figures, allowing you to make better strategic decisions.
You will need to deduct PAYE, PRSI and USC, on behalf of any employees, and pay to the Revenue. Employer PRSI will also have to be deducted.
Be aware that certain non-cash benefits should also be taxed or you may have to deduct Property Tax payments if an employee so elects.
With this amount of regulation and requirements it important to feel confident that you’re getting it right!
Luckily, there are plenty of payroll packages available that will suit your business no matter how many employees. You can use outsourced payroll services or you can do as much of the payroll process in-house as you would like. Artisan Accountant can advise you on the best package for your business and ensure you’re comfortable with its use.
Irish Value Added Tax (VAT)
If you register for VAT the rules can seem complex and the proper application can take up a lot of your time. You will have to consider…
- When to register.
- Which rates apply to you.
- What procedures should you have in place to make sure you’re compliant.
If you supply services you will need to register for VAT when your sales exceed €37,500 per annum, the figure is €75,000 if you supply goods. The basic structure of VAT returns is that the VAT you pay on your purchases is taken away from the VAT you charge on your sales to calculate your VAT liability or VAT refund. It may even be in your best interests to register prior to reaching the thresholds as you can reclaim VAT if you’ve paid a lot on outgoings, e.g. setting-up costs.
Some goods and services are VAT exempt, others are subject to %0 rate and, yes, there is a difference! You can claim back VAT on purchases if you pay the 0% rate but not if you are VAT exempt. Current Irish VAT rates are 4.8%, 9%, 13.5% and the standard rate is 23%.
Procedures to consider:
- Cash-receipts basis can be used for VAT payments. This is good for cashflow as you only have to pay the Revenue when you’ve received the payment for your goods or services, and not when the invoice is issued.
- Invoices will need to have VAT information such as the date, a sequential number, your name, address and VAT registration number and your customer’s name and address.
- Form VAT3 will need to be returned for every 2 month period and the VAT amount paid. However, these rules vary depending on your liability and whether you pay by direct debit.
Whatever your specific needs for bookkeeping services, there are various bookkeeping solutions available.
You may want to take a more traditional or basic bookkeeping approach. Maybe, you may want to use cloud software that allows remote bookkeeping anywhere and from any device. Whether you want a complete bookkeeping service or need a guiding hand only, I am happy to help.