Two recent headlines make clear just how difficult business finances are at the moment.
Legislation has failed to speed up payments, according to the Chartered Institute of Procurement & Supply (CIPS). It has found that despite the legislation “the average time it takes a large business to pay an invoice has fallen by just one day, to 36 days”.
This has had a particular impact on SMEs, according to finance specialist Sonovate “Nearly two-thirds of small businesses say late payments from clients are affecting their ability to pay contract workers on time,”.
The second headline, arguably a result of this situation, is a surge in HMRC winding up petitions: “Directors were presented with 348 winding-up petitions in July, with this the highest number of court orders in any month since 2019.”
Reportedly HMRC has become tougher on enforcement, restricting its discretion on time to pay arrangements and becoming “more aggressive in its enforcement and collection processes”.
This all makes it imperative that businesses are on top of their cash flow and finances.We have a free tool to help you.
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