Running a small business in Ireland comes with specific bookkeeping requirements. This guide covers everything Irish small business owners need to know.
6 Years
Record retention
€37,500
VAT threshold (services)
Bi-monthly
VAT returns
Irish Legal Requirements
In Ireland, all businesses must keep adequate accounting records for at least 6 years. Revenue can request to verify your records at any time.
- • All purchases and sales with supporting documents
- • All amounts received and paid out
- • Assets and liabilities of the business
- • Stock records at year-end
VAT Considerations
Most Irish small businesses will need to register for VAT once they exceed the thresholds (€37,500 for services, €75,000 for goods). VAT brings additional bookkeeping requirements:
Include all required details on invoices
VAT charged on your sales
VAT paid on purchases
All VAT invoices and receipts
Bi-monthly VAT submissions
Submit through Revenue Online Service
Choosing Bookkeeping Software
The right software makes Irish small business bookkeeping much easier. Popular options:
Xero
Most popular in Ireland
- Excellent Irish bank feeds
- VAT return generation
- Good app ecosystem
- Accountant-friendly
QuickBooks Online
User-friendly option
- User-friendly interface
- Strong invoicing features
- Irish VAT support
- Good mobile app
Sage Business Cloud
Established brand
- Well-established in Ireland
- Comprehensive features
- Strong support network
- Payroll integration
Setting Up Your Books
Open a Business Bank Account
Keep business and personal finances completely separate
Choose Your Software
Pick one that suits your business needs and budget
Set Up Chart of Accounts
Categories for income and expenses relevant to your business
Connect Bank Feeds
Automate transaction imports to save time
Create Invoice Templates
Include all VAT-required information
Establish Your Routine
Decide when you'll do your bookkeeping each week
Essential Bookkeeping Tasks
| Frequency | Tasks |
|---|---|
| Daily/Weekly | Record sales, issue invoices, categorise receipts, review payments |
| Weekly | Process supplier invoices, schedule payments, chase overdue invoices |
| Monthly | Reconcile bank accounts, review P&L, check upcoming bills, payroll |
| Bi-monthly | Prepare and file VAT returns, review cash flow forecast |
| Annually | Year-end accounts, stock count, prepare for accountant |
Common Mistakes to Avoid
- • Mixing personal and business: Keep them completely separate
- • Not keeping receipts: You need evidence for all expenses
- • Letting it pile up: Regular bookkeeping prevents headaches
- • Wrong VAT treatment: Know what's standard, reduced, or exempt
- • Missing deadlines: VAT and tax returns have strict deadlines
- • Not backing up: Use cloud software or regular backups
When to Outsource
Consider outsourcing your bookkeeping when:
- • It takes more than 5 hours per week
- • You're making errors or missing deadlines
- • You'd rather spend time on your business
- • Your business is growing in complexity
- • You need expert help with VAT or tax
Tax Considerations
Your bookkeeping feeds directly into your tax obligations. Irish small businesses need to be aware of:
For sole traders (Form 11)
For limited companies (12.5%)
If registered
If you have employees
Pay estimated tax in advance
Key tax deadline date
Bookkeeping Guides
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