Categorized | news

Late payments continuing to be a burden for small businesses

Late payments continuing to be a burden for small businesses

71% of small businesses have received at least one late payment over the past year according to a new study by NatWest.

They have discovered that the cumulative value of unpaid invoices currently stands at £62.87 billion of which £15.7 billion is for debts over 120 days old.

The NatWest study also showed that whilst 45% of SMEs have taken steps to protect their businesses only 11% have hired a credit controller to help chase debtors.

Although the problem has alleviated slightly since the end of the recession, fundamental difficulties are still apparent.

Steve Hughes, an economist at the BCC is urging businesses to run “clear and efficient” invoicing practices to minimise the risk of late payments. He stressed the need for companies to have agreed terms of payments with businesses that they supply.

The government had taken steps to address the problem and earlier this year pledged to pay public sector bills quicker. They have also enhanced and prompted the Prompt Payment Code.

Most of the leading contractor accountants already have web-based accounts receivable systems and processes set-up for their clients, to help keep track of outstanding invoices.

© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.

Image: this morning i was expecting to be late, in fact… by manwithface

Be Sociable, Share!

Leave a Reply

You must be logged in to post a comment.

  • Switch Accountants for FREE

    Switch Accountants for FREEAt K&B Accountancy Group we have introduced a simple and straightforward approach to changing accountants. We’re offering contractors, consultants and freelancers the opportunity to switch to K&B Accountancy Group for FREE without the need to pay for any ‘catch up’ or retrospective accountancy fees for the previous year’s accounts and corporation tax return* *T&Cs apply

our top 5 twitter posts

twitter

contractor accountants

contractoraccts



twitter Join the conversation
Free Telephone Advice