I’ve been in business quite a few years supplying feed, fertiliser and animal health products. I’ve always done the books the same way – invoices in a folder, totals on a spreadsheet and the VAT return every two months. It’s not pretty, but it works.
I recently took on a new bookkeeper, and she keeps pushing me to get an accounts system. She says I can’t keep doing it this way and that Revenue won’t accept VAT returns like this in a few years.
I’ve always steered clear of fancy systems, but between the volume of transactions and what she’s saying about VAT changes, I’m wondering if I should take this more seriously. What exactly is changing?
ANSWER: You’re asking the right question and your bookkeeper is correct on both the accounting system and the VAT changes.
What’s changing with VAT?
Revenue is modernising the entire VAT system in Ireland, as part of a wider European push to bring tax reporting into the digital age.
In time, paper invoices, PDFs and manually compiled VAT returns will be replaced by digital systems where invoices are issued electronically and the relevant information flows automatically to Revenue. This means your current method of tallying everything on excel will not suffice.
For a business your size, the changes won’t hit you overnight. The first phase in late 2028 affects only the largest companies in the country. However, by 2029 and into 2030, the net widens considerably, and all VAT-registered businesses, including yours, will need to be operating with systems that can handle electronic invoicing and digital reporting. Even before you’re required to issue e-invoices yourself, you’ll need to be able to receive them from your suppliers, and that alone requires proper software.
The key message is that you have a few years, but not many. Businesses that find the transition easiest will be those that start preparing well before the deadline. If large suppliers introduce e-invoicing over the next year, you will need to get on board also so that you can receive them.
A business like yours likely handles a high volume of transactions – buying from large suppliers and selling to hundreds of farmers. That volume is already difficult to manage on spreadsheets. Every invoice manually entered is time spent on administration rather than running the business.
When the new requirements come into force, a folder and a spreadsheet simply won’t be enough. Trying to introduce a proper system under deadline pressure is almost always more stressful and more expensive than doing it gradually now.
A new accounts system
Moving to a cloud-based accounting system is not about adding complexity. It is about preparing your business for where things are heading and improving efficiencies at the same time.
If your records are currently maintained on spreadsheets, it is unlikely you are producing regular management accounts or maintaining tight control over stock and debtors. A modern system can change that.
For example, in a system such as Xero, the accounts package sits at the centre.
It can connect to tools like Hubdoc, which capture purchase invoices automatically. Suppliers can email invoices directly into the system, or your bookkeeper can photograph them on her phone, and the information is stored and coded without manual entry.
Your bank account can also connect directly to the software so transactions flow in automatically and match against invoices.
A VAT return that currently takes significant time to prepare can be completed far more quickly because the information is already organised within the system. Beyond compliance, the benefits are practical.
Modern accounting systems provide clear management reports showing margins, cash flow, and outstanding customer balances. That information allows you to make better decisions during the year, not just when annual accounts are prepared. You can also include payment links on invoices, making it easier for customers to pay quickly.
The bottom line
The VAT changes coming down the line are real, and they will require proper digital systems to comply with. However, the honest truth is that the bigger opportunity here isn’t just about compliance – it’s about running a better, more efficient business right now. The compliance deadline is simply a good reason to do something you probably should have done already.
Your bookkeeper has done you a favour by flagging this early. Sit down with her and your accountant, look at your options, and put a plan in place. The systems available today are good, cost effective, and the time savings are real.
Andrew Brolly is fractional CFO with ifac, which is the professional services firm for farming, food and agribusiness.
Andrew Brolly is fractional CFO with ifac, which is the professional services firm for farming, food and agribusiness.
Ireland’s VAT system is moving towards digital reporting and electronic invoicing over the next few years. Businesses still using manual systems should begin preparing now by adopting cloud-based accounting software that can handle digital records, automate VAT reporting and improve financial visibility.
I’ve been in business quite a few years supplying feed, fertiliser and animal health products. I’ve always done the books the same way – invoices in a folder, totals on a spreadsheet and the VAT return every two months. It’s not pretty, but it works.
I recently took on a new bookkeeper, and she keeps pushing me to get an accounts system. She says I can’t keep doing it this way and that Revenue won’t accept VAT returns like this in a few years.
I’ve always steered clear of fancy systems, but between the volume of transactions and what she’s saying about VAT changes, I’m wondering if I should take this more seriously. What exactly is changing?
ANSWER: You’re asking the right question and your bookkeeper is correct on both the accounting system and the VAT changes.
What’s changing with VAT?
Revenue is modernising the entire VAT system in Ireland, as part of a wider European push to bring tax reporting into the digital age.
In time, paper invoices, PDFs and manually compiled VAT returns will be replaced by digital systems where invoices are issued electronically and the relevant information flows automatically to Revenue. This means your current method of tallying everything on excel will not suffice.
For a business your size, the changes won’t hit you overnight. The first phase in late 2028 affects only the largest companies in the country. However, by 2029 and into 2030, the net widens considerably, and all VAT-registered businesses, including yours, will need to be operating with systems that can handle electronic invoicing and digital reporting. Even before you’re required to issue e-invoices yourself, you’ll need to be able to receive them from your suppliers, and that alone requires proper software.
The key message is that you have a few years, but not many. Businesses that find the transition easiest will be those that start preparing well before the deadline. If large suppliers introduce e-invoicing over the next year, you will need to get on board also so that you can receive them.
A business like yours likely handles a high volume of transactions – buying from large suppliers and selling to hundreds of farmers. That volume is already difficult to manage on spreadsheets. Every invoice manually entered is time spent on administration rather than running the business.
When the new requirements come into force, a folder and a spreadsheet simply won’t be enough. Trying to introduce a proper system under deadline pressure is almost always more stressful and more expensive than doing it gradually now.
A new accounts system
Moving to a cloud-based accounting system is not about adding complexity. It is about preparing your business for where things are heading and improving efficiencies at the same time.
If your records are currently maintained on spreadsheets, it is unlikely you are producing regular management accounts or maintaining tight control over stock and debtors. A modern system can change that.
For example, in a system such as Xero, the accounts package sits at the centre.
It can connect to tools like Hubdoc, which capture purchase invoices automatically. Suppliers can email invoices directly into the system, or your bookkeeper can photograph them on her phone, and the information is stored and coded without manual entry.
Your bank account can also connect directly to the software so transactions flow in automatically and match against invoices.
A VAT return that currently takes significant time to prepare can be completed far more quickly because the information is already organised within the system. Beyond compliance, the benefits are practical.
Modern accounting systems provide clear management reports showing margins, cash flow, and outstanding customer balances. That information allows you to make better decisions during the year, not just when annual accounts are prepared. You can also include payment links on invoices, making it easier for customers to pay quickly.
The bottom line
The VAT changes coming down the line are real, and they will require proper digital systems to comply with. However, the honest truth is that the bigger opportunity here isn’t just about compliance – it’s about running a better, more efficient business right now. The compliance deadline is simply a good reason to do something you probably should have done already.
Your bookkeeper has done you a favour by flagging this early. Sit down with her and your accountant, look at your options, and put a plan in place. The systems available today are good, cost effective, and the time savings are real.
Andrew Brolly is fractional CFO with ifac, which is the professional services firm for farming, food and agribusiness.
Andrew Brolly is fractional CFO with ifac, which is the professional services firm for farming, food and agribusiness.
Ireland’s VAT system is moving towards digital reporting and electronic invoicing over the next few years. Businesses still using manual systems should begin preparing now by adopting cloud-based accounting software that can handle digital records, automate VAT reporting and improve financial visibility.
SHARING OPTIONS