CACM Accountants — Certified Public Accountants

Dear Reader

Welcome to our April e-zine. The sun is shining and it’s a perfect time of the year to do a bit of a spring clean, see where you are, decide where you want to be and make a plan to get there.

Following on from last month’s “Cash is King” as part of our Protecting Your Business series, we spoke about the steps that can be taken to maintain a steady cash flow and also how reviewing your tax situation may have a significant positive impact on it.This month, I will be giving you some top tips and advice on how to get paid on time. I hope you will find the information helpful.

If you have any queries or require further information or assistance with any of the topics below, please do not hesitate to contact me to arrange your free initial consultation on 021 421 7474 or e-mail: info@CACMaccountants.ie

Don’t forget, you can follow CACM Accountants on LinkedIn, Twitter and become a fan on facebook by clicking the links below.

As always, please feel free to pass this e-zine onto anyone you feel may benefit from any of the articles.

Carla Manning ADCA, CPA

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PROTECTING YOUR BUSINESS SERIES

Getting paid on time.

All businesses are competing with suppliers for their customer’s money. The business with the best credit control system will get paid first. The groundwork for getting paid on time starts with the beginning of a new customer/client relationship. Every business needs to have a system in place for accessing a potential customer’s credit worthiness, whether it is a policy of requesting credit references, bank references or using publicly available information or credit bureaus.

Once you are satisfied with the credit references, the next step is to ensure that there are written terms of business, which should include payment terms, provided to the customer. Do be aware though that for a contract to be legally enforceable it must contain certain elements and it is always wise to seek professional legal advice on this.

We all know that there are different categories of customers when it comes to collecting payment. In these difficult times, we all try our best to be reasonable and fair, particularly where in the past the customer has always been a good payer. The main thing is to ensure that as a business, you limit your potential exposure. The most difficult categories for all business to deal with are firstly, those that can pay some debts, but can’t pay it all and secondly, those that won’t don’t and never pay.

A good cash collection system should be flexible, reliable, secure, adaptable and economical. Most importantly, the system needs to be operated in a firm, but intentional manner. If a customer gives you a date for when payment will be made, if not received, a telephone call should be placed immediately. Information about the customer’s accounts department including their payment processing system should also be obtained as this can avoid delays in the issuing of payments.

When preparing to make a cash collection telephone call, it is important to make sure that you have all relevant information and be prepared with possible responses to the standard excuses such as “the cheques in the post”. You must remain firm and ensure that you finish the call with a definite answer.

Reducing cash collection time can also be helped with the use of electronic invoicing over traditional paper invoices. It can save time (not to mention costs) on the delivery of invoices and statements. Encourage electronic payments, standing orders and direct debits where appropriate. Accepting card payments and discounts for early payment can also encourage early payment.

Unfortunately, where telephone calls and reminders don’t work, things need to be ramped up a bit. Clear concise cash collection letters may ensure that the correct person is aware of the outstanding debt and result in settlement. Applying late interest payments may also speed up the collection. However, you need to decide the time that will be spent on something like this if you are aware that the inevitable result will be legal action.

Immediate steps that you can now take to improve cash collection include;

• A review of your current terms of business/contracts.
• Ensure that payment terms are clearly stated.
• If a written contract, make sure that there is an agreed reference to what interest will be payable on late payments
• Ensure system in place for monitoring agreed payment terms and unpaid debts
• Enforce the credit control procedures firmly, but vigorously.

Remember, good communication and negotiation skills are absolutely necessary when collecting debts. Keep making the calls, square off any excuses and always make sure that you end each call with a firm commitment and follow up if required. A company needs to make sure that they are always “first in line” to ensure that what cash a customer has comes your way.

For further information or for assistance please contact CACM Accountants on 021 421 7474 or e-mail info@CACMaccountants.ie

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KBC Ireland/ESRI Consumer Price Index improves in March.

 The overall KBC Ireland/ESRI Consumer Sentiment Index rose in March to 61.9. This compares to a figure of 59.4 in February and at its all time low in July 2008 when the index was at 39.6.

Commenting on the results David Duffy, ESRI, said:

· “The results for consumer sentiment indicate some improvement in March as consumers perception of the current environment improved. This is primarily due to a more positive perception of the buying environment for major household durables.”
· “The index of current economic conditions increased to 87.6 from 78.8 in February, while the expectations index fell from 46.3 in February to 44.5 in March.”
· ”The decline in the expectations index primarily reflects consumers continuing to have concerns about the overall economic outlook.”

In addition, Austin Hughes, KBC Ireland, noted:

· “The improvement in sentiment in March was fairly modest and the details of the survey point towards a consumer trying to make sense of conflicting influences on the economic outlook. While Irish consumers appear resigned to the fact that economic recovery will be limited, they also seem relieved that it is becoming clearer that the worst may be over.”
· “Irish consumers remain apprehensive about the general economic outlook but they were also a little less pessimistic about their own personal financial situation and how it is expected to evolve in the coming year. As a result, the buying climate also improved. It should be emphasised that consumers remain very cautious and there is little prospect of a spending spree anytime in the foreseeable future but we may be at or close to a turning point in household spending.”
 

Note:- Since May 2008 the KBC Ireland/ESRI Irish consumer sentiment survey was prepared using a slightly different methodology. While this may have a minor impact on the precise numerical estimates of various survey components, it should not have any significant effect on the broad trend reported.

Download the full report here. Size: 34.9K bytes       Download the indicies report here.  Size: 27.6K bytes

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RETURN AND PAYMENT DATES FOR THE MONTH OF May 2010

14th May 2010
PAYE/PRSI: P30 monthly return and payment for April 2010

DWT: Return and payment of DWT for April 2010

PSWT: F30 monthly return and payment for April 2010

RCT: RCT30 monthly return and payment for April 2010

19th May 2010
VAT: VAT 3 return and payment for period March/April 2010

VAT: 4 Monthly VAT 3 return and payment (if due) for period January/April 2010
 

21st May 2010

Corporation Tax:

Preliminary Tax for Accounting Periods ending between 1st – 30th June 2010

Returns for Accounting Periods ending between 1st -31st August 2009

Pay balance due on Accounting Periods ending between 1st -31st August 2009

31st May 2010
Returns of Third Party Information for Accounting Periods ending between 1st -31st August 2009

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Cash registers and point of sale systems.

The Revenue Commissioners have issued an information leaflet on cash registers to all VAT registered customers who deal in cash. It highlights the changes to VAT Regulation 8, which came into effect on 2 July 2008. It has also been issued to cash register suppliers, including software suppliers.

It is the obligation of every accountable person to maintain proper books and records and to ensure that statutory requirements in relation to VAT transactions are kept.

In respect of payments received from persons not registered for VAT (mainly non-business customers), a daily total of the amounts received must be kept. This total must be cross-referenced to any relevant records or documents (such as cash sheets and stock control reports) that are in use for the purpose of the business.

From July 2008, where an EPOS system or electronic cash register is used, a complete record of each entry on that register or system must be retained and each entry must include a sequential number that uniquely identifies the entry, together with the date and time of such entry.

 In using a cash register or EPOS system, businesses acknowledge the need to properly record all transactions and sales associated with the business. Cash register transaction records, both electronic and in paper format, form part of the books and records ofthe business, which a business is obliged to keep when complying with their tax obligations. Cash register records and supporting documents, either paper or electronic, are required to be kept for a period of 6 years.

Cash registers and point of sale systems, together with the records created or produced by them, form part of the records required to be retained by a business for tax purposes. These registers or systems and associated records may be required to be producedfor inspection by the tax authorities at any time. In particular, in the event of a Revenue visit they may be subject to inspection.

Since July 2008, it is mandatory that electronic cash register and point of sale system records have the date, time and sequential number that uniquely identify each transaction.

A copy of the information leaflet can be accessed on the Revenue website at revenue.ie

If you want to make sure you that your books and records are complying with statutory requirements, please do not hesitate to contact CACM Accountants on 021 421 7474 or e-mail: info@CACMaccountants.ie

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Income Tax 2009

The deadline date for submission of 2009 income tax returns is

31st October 2010. Payment of the following must also be made by this date:

• The outstanding balance of your 2009 income tax liability
• Payment of your preliminary income tax for 2010.

Early preparation and filing of your income tax returns can help you to avoid some of the difficulties that can arise including:-

• Insufficient time to review your affairs for tax planning purposes
• Potential cash flow problems in October
• Higher risk of error due to last minute filing
• Potential interest and penalties for late filing
• Greater risk of Revenue audit

 So, let’s make hay while the sun shines – forward your books and records to CACM Accountants as soon as possible.

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SERVICES CACM Accountants PROVIDE

• Taxation Service & Advice
• Accounts Preparation
• Audit
• Payroll Services
• New Business Start Up
• Company Secretarial
• Outsourced Accounting Services
• Management and Business Advisory Service
• Litigation & Forensic Accounting

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CACM Accountants strive to offer the best possible service for its clients. With vast business experience, across many business sectors, we will always keep our clients at the heart of our firm.

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