VOL 1 I NOV 16
CAPITAL N E W S L E T T E R F O R K E O G H S O M E R S C H A R T E R E D A C C O U N TA N T S
STATE OF PLAY
Keogh Somers look forward with positive views
BUDGET IN BRIEF
An analytical summary of Budget 2017
SUPPORTING TOMORROW’S LEADERS
Co-op Experience at Keogh Somers
IN THIS ISSUE
STATE OF PLAY
A Word from the Managing Partner PG
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SUPPORTING TOMORROW’S LEADERS
Co-op Experience at Keogh Somers
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Talk to us today, we’d like to know what you think.
BUDGET IN BRIEF
An analytical summary of the 2017 Budget
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BRIDGING BREXIT The Need to Know Stuff
Mail. Fax. Tel. Email. Web.
4 The Crescent Limerick 061 446731 061 318500 info@keoghsomers.ie www.keoghsomers.ie
Dock Gate House Merchants Road Galway 091 567768 info@keoghsomers.ie
www.facebook.com/Keogh-Somers twitter.com/KeoghSomers http://ie.linkedin.com/company/keogh-somers
CAPITAL I N E W S L E T T E R F O R K E O G H S O M E R S C H A R T E R E D A C C O U N T A N T S
STATE OF PLAY
A WORD FROM THE MANAGING PARTNER When on 10 January this year, the world woke to the news of the death of music icon David Bowie, it was clear that 2016 was going to be a challenging year. It was as though the ‘master of reinvention’ himself was showing us that transition, and some watershed months, lay ahead. Certainly there were some landmark events that we knew would change the face of world politics forever: Ireland would go to the poles in a General Election, the UK was to vote on Brexit and the US would elect a new president in a highly controversial election. All in one short year. Looking back now, much has been challenging – but here’s the thing: what we’ve seen are the kind of changes that can be key to unlocking new opportunities. The only constant is change – and it’s how we work with that that will define us in business. It’s knowing, for example, that lean, flexible and forward-thinking companies like ours are well-placed for a post-Brexit economy. And it’s about navigating positive change for all of our clients – by guiding, assisting and advising. The finance world saw some fundamental changes this year – with the pillar banks coming to terms with their troublesome loan books and NAMA accelerating the sale of their loan book. The benefits have already started to unfold, with many of our clients taking on new opportunities more aggressively. Perhaps one of the biggest disappointments for Limerick was that it was not successful with its 2020 City of Culture bid. Of course the good side is it brought the city together in a way like never before – and encouraging news on the economic front continues. It’s especially noticeable in the job market, where finance professionals are in high demand. Limerick City and County Council are leading with
their vision for the city and for 2030 – and there’s no doubt that we are entering a really interesting period for business in the region. Here at Keogh Somers we’ve had our own changes too – but as with the local and national economy, these developments put us in a great place to service new growth in the market. In fact, especially so – as we are geared to working with clients who are going through growth and who have complex ownership structures or business models to take into account. So in the spirit of change, here’s a round-up of the year’s events so far.
“The only constant is change – and it’s how we work with that that will define us in business..”
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CAPITAL I N E W S L E T T E R F O R K E O G H S O M E R S C H A R T E R E D A C C O U N T A N T S
BUDGET IN BRIEF Budget 2017 was announced on October 11th 2016 – and as we had anticipated, in the main it was non-eventful with very little to get overly-excited or concerned about.
THE KEOGH SOMERS WAY
WHAT’S THE DIFFERENCE?
The bottom-line was that approximately €1.3bn is to be put back into the economy. There will be €300m in tax cuts, and an extra €1bn in public spending. One of the more interesting tax adjustments was the decrease in the Capital Gains Tax rate for those qualifying for Entrepreneur Relief from 20% to 10%. The relief applies on gains of up to €1m, and is very attractive for those who qualify, where transactions are being considered. The amount of gifts or inheritances that children can receive from parents without having a Capital Acquisitions Tax (CAT) liability has increased from €280,000 to €310,000. This is a very welcome adjustment - and we can expect to see further increases over the coming years as property prices increase. Housing has become a significant issue for the Government, and so the new, first-time buyer incentive was no surprise. There have been some adjustments to the scheme since it was announced on Budget Day, but firsttime buyers of a house of €400,000 can potentially obtain a tax refund of €20,000. There are minimum borrowing requirements that need to be satisfied, but this incentive is welcomed by those climbing on to the property ladder for the first time. The Universal Social Charge (USC) rates at the three lower rate bands have each been reduced by 0.5%. The higher rates remain unchanged. The Government had announced its intention to remove the USC over its lifetime, so there is quite a journey to go. Also, if that goal is to be achieved, replacement taxes will surely be required.
L-R: Peter Ryan, Peter Keogh & Paul Tierney of Keogh Somers Since our beginnings in 2005, our business has established itself as a leading accounting company in the Mid-West region and now Galway. Work with Keogh Somers and you’ll quickly see how we are set apart from more conventional firms – and how these differences are passed on to you as key advantages.
“We know that our greatest asset truly is our people, and our three partners all have impressive ‘Big Four’ backgrounds.”
Firstly, we know that our greatest asset truly is our people, and our three partners all have impressive ‘Big Four’ backgrounds: Paul Tierney (Audit), Peter Ryan (Tax) and Peter Keogh (Advisory). There’s a wealth of experience, knowledge and expertise here, which all partners enjoy sharing. Beyond our partners, our firm comprises a raft of professionals, together making up our driven and committed team. Secondly, we’ve developed our business on a service line model – which means you benefit from effective communication and close team work across our three core service lines: Audit and Assurance, Taxation and Advisory. Harnessing the individual skills of our three partners, we can provide a cohesive cross-service line delivery which has proven to be the cornerstone of the firm’s success. It’s also especially ideal for owner-managed businesses, as we work together to maximise their returns.
CAPITAL I N E W S L E T T E R F O R K E O G H S O M E R S C H A R T E R E D A C C O U N T A N T S
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BRIDGING BREXIT
THE NEED TO KNOW STUFF It’s fair to say that nobody was prepared for the Brexit result – and that includes ourselves. And while it’s early days yet and there are so many questions we haven’t even begun to ask, let alone answer – perhaps one of the most important learnings to emerge from Brexit is the importance of having a reasoned, considered Plan B: advice we always give to every one of our clients. Here’s a quick round-up of what you need to know about Brexit right now: • Currency is top of the concern list and it’s a worrying time for some tightmargin businesses we work with. Talk to us, we’re here to help where we can. • The political hot potato has to be the free movement of people – but we believe this is unlikely to have much effect on most of our clients’ businesses.
• A real unknown is the effect of Brexit on trade agreements, particularly our own interaction with the UK in the future. This was well flagged in commentary before the Brexit vote - particularly by our own Peter Sutherland, and we believe it is likely to have the most negative impact on the UK economy. Our advice is clear: consider your own relationship with the UK market and the impact that Brexit could have on that relationship, then start considering what opportunities may exist in a post-Brexit world.
• Foreign businesses setting up in Ireland? Definitely yes. Our firm has already seen some business coming into Ireland from the UK and Europe directly as a result of Brexit. We have had enquiries about how to establish a presence in Ireland and the regulatory and tax regime in the country. So yes, some serious risks exist – but if dealt with knowledgeably, we believe the initial chaos caused by Brexit can, in the future, translate into important opportunities for our clients.
KEEPING GOOD COMPANY
THE COMPANIES (ACCOUNTING) BILL 2016: WHAT’S NEW? PUBLISHED ON 8 AUGUST 2016, HERE ARE THE KEY AMENDMENTS TO THE COMPANIES (ACCOUNTING) BILL 2016.
1 THE INTRODUCTION OF THE MICRO COMPANY This new class of company has been introduced and will have a much reduced disclosure requirement. 2 SIZE CRITERIA Changes to the criteria for small and medium-sized companies are: Turnover Balance sheet total Employee numbers
MICRO 700,000 350,000 10
SMALL 12,000,000 6,000,000 50
MEDIUM 40,000,000 20,000,000 250
3 FILING OF ACCOUNTS More companies will be required to prepare consolidated financial statements as the size exemption only applies to micro and small companies. Also medium-sized companies will no longer be allowed to file abridged accounts. 4 UNLIMITED COMPANIES Companies that have previously availed of a “non-filing structure”, exempting them from filing financial statements with the CRO, may, in certain cases no longer avail of this. The Bill provides specific definitions where the “ultimate beneficial owners enjoy the protection of limited liability”.
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CAPITAL I N E W S L E T T E R F O R K E O G H S O M E R S C H A R T E R E D A C C O U N T A N T S
SUPPORTING TOMORROW’S LEADERS CO-OP EXPERIENCE AT KEOGH SOMERS Sharing our knowledge and expertise in order to pave the way for the next generation of business people, has always been a key value at Keogh Somers – a goal we put into action through cooperative placements. In January, we offered placements to two students from the University of Limerick and they moved swiftly from busy induction day into a tenure which saw them benefiting from a wide range of work experience in auditing and in the preparation of financial accounts. To give our students an experience that truly reflected what they could expect from their chosen future career, we trusted them with responsibility for completing tasks and encouraged them to immerse themselves into the culture and ethos of our business, as much as possible. They shared these comments with us about their time here: “ We were very privileged to secure our eight-month cooperative placement with Keogh Somers Chartered Accountants in Limerick. Accounting and Finance is our major option in college, so our placement as Audit Co-Ops in the Audit and Assurance Department of the firm was a valuable learning experience. Working in Keogh Somers has provided us with a unique insight into the day-to-day environment of top class accounting firm and has helped us put our academic theory and learning into practice in the working world. During our time at the firm we were fortunate enough to
gain work experience in terms of auditing and financial account preparation. We undertook some out-of-office client-related work in Limerick and Galway and developed many new abilities including how to be an effective team-member, along with communication and ICT skills. We improved on our ability to work under pressure in order to meet deadlines and learned the importance of punctuality, good manners and professionalism at work. We also really appreciated the way Keogh Somers encourages a healthy work-life balance: the partners were very supportive of the sports, interests and hobbies we have outside of work. All in all – we gained so much that will definitely stand us in great stead for the future.” Siobhan Hennessy and Sarah Fryday, UL (Pictured left)
“ Working in Keogh Somers has provided us with a unique insight into the day-to-day environment of a top class accounting firm...”
CAPITAL I N E W S L E T T E R F O R K E O G H S O M E R S C H A R T E R E D A C C O U N T A N T S
THE SHAKERS
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P R O F I L E
SOME RECENT PROMOTIONS
Keogh Somers is committed to developing staff and providing opportunities for promotion as the firm grows. With this in mind, we’re delighted to congratulate two of our team members on their recent career success… John O’Riordan has been promoted to Assistant Manager in Audit. A former student of Limerick Institute of Technology, John graduated in 2011 with an Honours Degree in Accounting and Finance. He went on to train with the firm, qualifying as a Chartered Accountant in 2014 after passing his Final Admitting Exams at the first attempt. With a keen ability to prioritise, John has always shown strength in helping to develop our team: we’re really excited to see him grow into a key member of management. A footballer for Limerick Inter-County, John is a keen sportsman and also plays hurling with the Templeglantine GAA Club. His ambition is to win the Limerick Senior Football and Limerick Junior Hurling Championships. Sarah McGarry has been promoted to Tax Assistant Manager. Sarah studied at UL, trained at Mazars in Dublin and qualified as a Chartered Accountant before joining our firm as a Tax Consultant. She brings a wealth of talent, knowledge and experience to her new role. Sarah also has a real flair for technology and she plays an active role in making sure that Keogh Somers remains an early adopter of, and leader in, technological developments. Sarah is currently on maternity leave and we are looking forward to having her back with the tax team in January.
Meet Paul Tierney Heavy-weight, Paul Tierney, joined Keogh Somers in January 2015 – and it’s been an exciting time since then. The ‘Big Four’ approach is part of the DNA of our firm – and it’s been great to have our approach proved again in the form of Paul. Paul’s area of expertise is audit – a pillar of our service offering - and he brings a deep understanding of the importance of financial reporting. He truly lives out our ethic that all of our clients should have their financial statements presented as best in class. While at Deloitte, Paul was a director with an impressive client portfolio while also being responsible for staff management. When you work with Paul, the value of his 20 years’ experience with the Deloitte team is immediately evident – and he has had a significant impact on consolidating our own team at Keogh Somers. Clarity of approach and an unwavering enthusiasm make up Paul’s own special signature. Like all best practice firms in our sector, we pride ourselves on developing our team members in conjunction with The Institute of Chartered Accountants training programme – and Paul’s unique skills and input is critical to the development of this aspect of our business. We are excited for clients present and future with whom Paul will work – and look forward to going from strength to strength, together.
CAPITAL I N E W S L E T T E R F O R K E O G H S O M E R S C H A R T E R E D A C C O U N T A N T S
ONWARDS & UPWARDS GRADUATING WITH FLYING COLOURS
Two employees who have been training with Keogh Somers have just received the happy news that they have passed their Chartered Accountants Ireland FAE at their first attempt – now qualifying as fully-fledged Chartered Accountants.
Paul Tierney delivered official congratulations to Kevin Taylor and Gareth Quinn McDonagh – who were both ecstatic about the news and happy that the years of hard work and commitment have paid off so well. Kevin Taylor began his training as a mature student, leaving his corporate position at Dell to pursue a career in accounting. “It’s been four years of hard slog, but worth every bit of it. Training at Keogh Somers has been a great start to my career and the firm has been very supportive,” says Kevin. Gareth Quinn McDonagh played rugby for Munster Academy and Shannon before going on to study accounting at UL. He thanked the partners for the training he has received which he described as “second to none”: “We have gained experience in every aspect of accounting – company, tax, pay roll, VAT returns and audit. The firm really understands the importance of studying.” Keogh Somers thanks both Gareth and Kevin for all their hard work and wishes them every success as they embark on their careers.
AND FINALLY A FEW WORDS FROM THE WISE “MONEY DOESN’T SOLVE ALL PROBLEMS. BUT IT COULD SOLVE MY MONEY PROBLEM.” - anon
“THERE WERE TIMES MY PANTS WERE SO THIN I COULD SIT ON A DIME AND TELL IF IT WAS HEADS OR TAILS.” - spencer tracy
“HERE’S SOMETHING TO THINK ABOUT: HOW COME YOU NEVER SEE A HEADLINE LIKE ‘PSYCHIC WINS LOTTERY’? - anon LIMERICK 4 The Crescent Limerick F: 061 446731 T: 061 318500 E: info@keoghsomers.ie W: www.keoghsomers.ie
www.keoghsomers.ie
“I SPENT A LOT OF MONEY ON BOOZE, BIRDS AND FAST CARS. THE REST I JUST SQUANDERED.” - george best
GALWAY Dock Gate House Merchants Road Galway T: 091 567768 E: info@keoghsomers.ie