Rethinking payment practices: a spirit of collaboration
20 July 2020
Many businesses are facing extraordinary pressure on cash flow, and it is recognised that businesses of all sizes will be making commercial decisions to mitigate against the risks caused by COVID-19. With unparalleled levels of Government financial support and intervention for companies, now is a time for the entire business community to work together in a spirit of collaboration and partnership. With the best intentions many large UK companies have issues with payment from time to time, but there is a duty to report publicly on payment practices, policies and performance.
The reporting requirements apply to qualifying companies which are deemed to be in scope for a financial year if, on their last two balance sheet dates, they exceed a minimum of two of the following three thresholds:
- £36 million annual turnover
- £18 million balance sheet total
- 250 employees.
This ever changing and uncertain world requires all of us to work together and rethink how businesses and the economy operates growth for the good of all.
Rethinking payment practices: a spirit of collaboration, originally published by our colleagues in BDO LLP, provides a useful guide to take all businesses through key milestones and criteria to report. If you have any queries, please contact your local BDO experts listed on the right.