Partner Article

Accountants urge smaller businesses to sign voluntary agreement

North East chartered accountants and business advisers Waltons Clark Whitehill are urging small and medium sized businesses to sign a voluntary agreement to promote beneficial payment practices.

Business Minister Michael Fallon has issued a warning to all big businesses to sign up to the Prompt Payment Code which will be four years old in December.

Failure to sign the agreement could result in larger companies being publicly named and shamed in the New Year, he said.With 1,182 companies currently signed up to the Prompt Payment Code, Hartlepool based Waltons Clark Whitehill strongly believes that more businesses, both big and small, should get involved, whatever the size.

In order to try to help small businesses, Waltons Clark Whitehill believes the agreement is a good way of trying to improve the credit flow. The issue, which affects everyone in the supply chain, is important and the agreement is a way of tackling this.

Heather O’ Driscoll, Managing Partner at Waltons Clark Whitehill said: “We would strongly urge all businesses to sign up to this agreement as it will benefit smaller companies in the long run.

“If larger companies are ignoring the Prompt Payment Code, it affects smaller businesses throughout the supply chain. By everyone signing up to the agreement it would create a more beneficial credit flow for all involved and help the economy overall.

“Quite regularly we see a ‘domino effect’ right down the supply chain. Late payments affect cash flow and forces many firms to go into administration. Businesses should do whatever it takes to reverse this cycle, hopefully then we can start to see changes for small businesses and the economy overall.”

This was posted in Bdaily's Members' News section by George Hardey .