OWEN SHEEHY

McInerney Saunders

Based in Swords, McInerney Saunders is a leading north Dublin practice providing accountancy, taxation and business advice to Irish and international companies. Owen Sheehy has been with the firm since 1991.

ACTIVITY During the initial phases of the pandemic, there were operational challenges in migrating to remote working, which impacted productivity in the short term. We were extremely busy supporting our clients and advising them on the various government supports and Revenue schemes.

The pandemic necessitated a change in mindset regarding the delivery of our audit service. Thankfully, we already had a good IT scaffolding in place. And with remote working, we have increased collaboration with colleagues and our clients using MS Teams and screen-sharing, in order to ensure we carry out sufficient work to support the audit opinion.

REMOTE WORKING The transition to remote working for staff whose roles allow them to work independently was seamless, but it was more challenging for staff who worked in teams, and in particular for trainees. Working from home has its benefits, such as savings in commute times and in travel costs, and in some cases increased productivity. Challenges include inducting new team members, managing trainees, and ensuring that staff feel supported without the daily personal interaction. The majority of staff have a preference for working in the office at least some of the time.

BUSINESS SUPPORTS The government supports are allowing businesses to manage salary and rent costs without the necessity of having to use reserves. The EWSS has allowed businesses to retain employees and for those who are eligible for the CRSS, it has provided them with a much-needed contribution towards their overhead costs. Businesses that have availed of Revenue debt warehousing have been given the use of cash that would otherwise have already been used to discharge their tax liabilities. The critical test will be whether they will be able to generate sufficient free cashflow to repay these tax liabilities when they fall due.

Businesses in the worst-affected sectors that have not generated any income may currently be able to service their overheads where they qualify for the CRSS, and in particular, if they have received concessions from landlords for rent reductions, or a moratorium from their banks on loan repayments. The key issue for the survival of these businesses will be the level of trading once normal activity resumes.

It will be important to see how consumer habits and spending patterns may have changed during the last 12 months. For those who have continued to work and have been in receipt of a normal level of income, their spending power may have increased with savings made during lockdown.

‘The pandemic has necessitated a change in the audit mindset’