ACCA holds roundtable on poor payment practices for SMEs

The Association of Chartered Certified Accountants (ACCA) joined SNP spokesperson for SMEs, Douglas Chapman MP, for a roundtable at Westminster last week to discuss the UK’s “crippling” late payment culture. 

It is reported that the discussion was led by the Scottish ACCA, including representatives from UK ACCA members, as well as small business commissioner, Liz Barclay. 

The discussions covered the role of accountants in supporting SMEs within the wider context of instability and insecurity in the current economic and fiscal environment. 

In addition, the discussion also covered analysis of the impact of poor payment practices on businesses, how these businesses cope with late payment of invoices and ways to minimise risk. 

Douglas Chapman MP said: “This roundtable discussion comes at a crucial time for SMEs across the country, many facing huge challenges not just post-Brexit and post-pandemic, but in terms of the cost-of-living crisis and a global energy crisis. 

“Poor payment practices can lead to shattering consequences for SMEs in terms of their operating costs, servicing debt, paying staff and suppliers, and ultimately, can result in companies going out of business.”

He added: “We can’t have a thriving economy, we can’t improve our prospects, and we can’t create resilience and security without a practical, solution focussed approach on tackling poor payment practices.” 

Liz Barclay, small business commissioner, said: “I was delighted to talk with accountants who are dealing with these small suppliers, and the suppliers themselves, on the nuts and bolts of poor payment practices, including late payment of overdue invoices and the imposition of long payment terms. 

“We need more of these conversations, and we must get the bigger customers round the table to discuss this too. We talk about a cost-of-living crisis, but in reality, we are also in the middle of a cost-of-doing-business crisis and many small suppliers are struggling with this double whammy.”

Graham Parker, director of Condies, added: “I was pleased to represent ACCA and get together with Mr Chapman and other ACCA members and businesses to highlight small business concerns including late payments, payment practices and the wider implications of credit terms.”