Not only does it enable effective decision making, it also helps to give the small business owner a hands-on approach to their business by having easy access to all their company information at the touch of a button. This can mean the difference between success and failure for a new start-up business. But it’s not only the start-up businesses that require accounting software packages, many established businesses would run more effi ciently and effectively if they were using a time saving accounts package.

There are numerous features of accounting software that make it an invaluable tool for business owners. The benefi ts of using software, such as Big Red Book or SAP, are: you are able to issue invoices on time to customers in one quick and easy step; you can lodge receipts and keep track of cheques written and track them right through to your bank account; you can keep track of direct debits into your bank accounts; and you can perform regular bank reconciliations to keep on top of money in and out. Not only can you keep track of VAT, you can do your VAT returns at the touch of a button. You can keep track of stock items and prices of stock, which can be broken down into cost prices and varying price levels.

Once you have your basic transactions recorded in the system you have easy access to all your company’s fi nancial data and so can see the profi t and loss fi gures for your business at any stage. There is a wealth of reports that can be interrogated to analyse your businesses’ performance and to help you keep track of debtors and creditors. The reporting capabilities of most accounting software systems are invaluable to business owners as they contain real information on the business performance. Any business owner still operating on a manual system is not giving themselves the upper hand in their business dealings.

It is surprising how many small businesses today still operate off old paper receipts and delivery dockets with a handwritten list of people that haven’t paid an invoice, etc. If a customer rings up and you don’t have easy access to their previous account history it is often too time consuming to fi nd the fi le with their information. This can lead to deals being made purely to avoid the embarrassment of not remembering previous orders or conversations with individual customers.

With a computerised system you simply select your customer details and see all the previous transactions on their account. Some software allows you to go that bit further with a Customer Relationship Management (CRM) module, which allows you to record other information about customers such as a log of all calls made to that customer and all correspondence sent by email or post to that customer. These systems help fi ne-tune the management capabilities within a business.

Todays business owners need to be on top of their accounts and, at a minimum, should be able to see exactly where their business stands fi nancially at any given time throughout the year and not just at their fi nancial year-end. It is far more useful for accountants to receive an organised set of data at the end of the year instead of a shoebox full of receipts! The tools to be effective and make the best decisions for your business are out there for you, you just need to make the decision to utilise them.

• Give Gardai and the District Court powers to prohibit any person for periods between 7 and 21 days carrying out a service or transaction that may be shown to assist money laundering or terrorist fi nancing (e.g. a bank transfer or property transaction).
• Clarify the definition of “designated person” to include an auditor, external accountant or tax adviser, a relevant independent legal professional, a trust or company service provider, a property service provider, a person who directs a private members club at which gambling activities are carried out (casino), a person trading in goods in respect of transactions involving the receipt of cash of at least €15,000 and others.
• Provide for how trust and company service provider are to be authorised.
• Force directors of Private Members Clubs (unlicensed casinos) to register with the Minister for Justice. Failure to register will be an offence.
• Set out the meaning of “benefi cial owner” to also include anyone with a 25% controlling interest in a partnership or trust, or an Executor of a deceased’s estate.
• Provide for Customer Due Diligence and allows for a simplifi ed system in low risk situations.
• Provide for Customer Due Diligence and allows for a simplifi ed system in low risk situations.

Designated persons will require as soon as the Act is passed to signifi cantly revise how conduct assessment for money laundering in their respective businesses. Private members club directors and those running trust and company service provider business will need put in place risk assessment processes on new and existing customers.

Meanwhile, recent reports suggest that the current account balances of small and medium business customers at the two main banks are beginning to improve.

More small firms are moving into the black in 2010 in comparison to last year, according to AIB and Bank of Ireland. This is a sign that businesses are beginning to experience the positive change in larger economic trends. Bank of Ireland confi rmed recently that it has €1 billion in unused overdraft facilities among its customers. The reason for this is thought to be that small businesses were ‘still bobbing along the bottom’ and not keen to borrow for expansion yet.

• A termination date of 31 March 2011 applies where the work to be carried out does not require planning permission and at least 30% of the total construction, conversion or refurbishment costs have been incurred on or before 30 September 2010.
• A termination date of 31 March 2012 applies where planning permission is required for the work, a planning application has been submitted and acknowledged in writing by the planning authority on or before 30 September 2010 and the planning application is not invalid.

While Revenue may be calling time on the capital allowance scheme, it is clear that there is still life in the scheme for anyone who can act fast enough to fulfi l the criteria pre- 30 September 2010.

Once enacted it will establish a statutory civil partnership registration scheme for same-sex couples, together with a range of provisions to deal with such partnerships, including how they may be dissolved, etc.

It will also establish a redress scheme for opposite-sex and same-sex cohabiting couples who are not married or registered in a civil partnership. The redress scheme may be activated at the end of a relationship, whether by break-up or death, and allows a financially dependent cohabitant to apply to court for certain remedies, including maintenance, property or pension adjustment orders, or provision from the estate of a deceased cohabitant.

The Bill also allows for cohabitant agreements that deal with financial affairs of cohabiting couples and allows couples to opt out of having the redress scheme applied to them. It is likely that once enacted a great number of such couples will seek advise from practitioners on all the various legal and taxation matters involved.

Well let’s look at that – just how prepared are we to work in the knowledge economy? We figure we are the new Scandinavians; a well-educated, well-paid population that is a leading nation of the world. Is this true? If almost 20% of us were not too busy building houses would we have been ready to put on the lab coat and start making some breakthroughs? Would we be ready to start selling some nice complex financial instruments or building cutting edge software?

Just how ready is your business for a more sophisticated society? The main answer normally is: ‘Who cares? I’ve got a small local business and although I like to discuss the politics of the day, my customers are my customers and they are not for changing’.

Ireland Business Stats

• 83% of businesses have broadband, up from 43% in 2005.
• 96% use the internet.
• 85% of businesses now use internet banking.
• 65% have a website.
• 121% mobile penetration – businesses are mobile, with more mobile phones than people in the country.

Ireland Consumer Stats

• 930,000 Irish people used online banking in 2009 and this number is rising rapidly.
• 1.7 million Irish people use the web to book flights and accommodation.
• 1.2 million had ordered goods or services online for private use.
• 1.5 million people use a computer every single day.
• 62% of all households are connected to the internet.

So, in short, we are moving online and onto our mobile. Let’s balance this with the fact that Ireland is still one of the countries with the lowest adoption of credit card payments amongst SMEs. Our customers are moving online and becoming more digital in their dealings but we are still chasing cheques. The cheque will be gone in 2016 – what will we do then? The implications are big, not just for getting paid but also for financing our business. It was all great fun dodging payment requests with ‘It’s in the post’ but what do you do when that excuse is gone? We are going to have to get paid faster to pay out faster

So back to those pesky politicians … what will they do to help us? They have promoted schemes such as innovation vouchers where businesses can get a grant of €5,000 to develop their businesses online, plus other similar supports in terms of training and guidance. The politicians could definitely do more but frankly it looks like this is where we need to help ourselves and each other as SMEs.

In most cases the solutions are small steps that are cheap enough to implement but we need to go and do it. It’s time to get knowledgeable about doing business in a Knowledge Economy.

The index rose to 52.4 during the month, remaining above the 50 mark that separates growth from contraction. The rise follows a reading of 51 in April, the fi rst time activity increased in the sector in more than two years.

The report noted that the only sector to post a decline in activity was transport and leisure, but this should be boosted by the weak euro in the coming months. However, whilst service sector employment remained below 50, at 46.8 this is in contrast to the manufacturing index, which saw employment rise in May 2010.

The competition is the largest in Ireland in terms of the prize fund available and in the past has helped give fl edgling fi rms a ‘lift-off’. As well as offering fantastic cash incentives Seedcorn provides invaluable support and advice from some of the island’s top investment experts, and the competition mimics a real venture capital investment process.

Winners are selected in each category in each of the regions and will be asked to make their presentation again to a separate panel of judges at the fi nal in Belfast on Tuesday 30 November 2010. The panel will then select the overall all-island winner in each category. More information is available at www.intertradeireland.com.

As well as receiving a much needed financial fillip, successful applicants also benefi t from ‘pooling their expertise and resources’ with another company, ensuring their innovative ideas are brought to market faster than if they were working alone.

There have been 652 insolvencies this year compared to 512 last year; with 263 coming in Dublin. The sectors worst affected were: construction (28 last month and 194 so far this year); hospitality (17 in May with 83 since the New Year); manufacturing (14 last month and 51 for the year); and motor and transport (10 in May with 32 for the year). High rents continue to cause problems for retailers, although, the car scrappage scheme is helping to sustain the motor industry.