14. Deputy Edward Timmins asked the Minister for Enterprise, Tourism and Employment the supports in place for small companies and businesses to enhance their understanding of profit and loss and cash flow; and if he will make a statement on the matter. [62194/25]

Sentiment score: 0.16

Like the Minister, I have worked in and for small businesses in this country. The highest number of employed people in the country is in small businesses. Many of these businesses are an intrinsic part of their communities. They are also a crucial part of the economy and the social fabric of this State. What supports are in place for small companies and businesses to enhance their understanding of profit and loss and cash flow?

Sentiment score: 0.18

I thank the Minister of State. That covers a lot of what I was looking for. These businesses include retail, restaurants, pubs, small family businesses and the self-employed. In my experience, many of them have a poor understanding of profit and loss. They do not understand the basics of gross profit and fixed overheads. If they understood them, they would know their break-even sales figure. This is fundamental to understanding viability. If they understand this, they can know using a weekly turnover figure how well they are doing. This means they can take corrective action before it is too late. Unfortunately, many only know they are not doing well when they see they cannot pay their VAT bill or their suppliers. Even then, they do not understand what the problem is.

Sentiment score: -0.06

In relation to taxes, we have a similar problem. Many businesses think the VAT they receive is part of their business cash, not fully understanding it is cash they collect on behalf of the State. I came across a business selling coffee. They thought the €4 they charge for the coffee was their income and the VAT was a cost. Similarly with PAYE, USC and PRSI, they sometimes use these taxes as cash flow for the business. Can the LEOs provide a basic tool to help small and not-so-small businesses navigate this apparently simple issue, which has driven many potentially successful businesses to the wall? Can such workshops be a regular offering by the LEOs? Can Revenue do the same? Can they inform small businesses of these supports?

Sentiment score: 0.08