The nitty-gritty of duty to report
Last April, there was a change in the legislation on the reporting of payment practices and performance regulations. Find out which information you need to submit and what you need to do now.
SMBs owed more than £26 billion. To tackle this issue, the new regulations introduced last April require businesses to report on the time it takes them to pay their suppliers. Information about those who are not paying their suppliers is now publically.
However, not all businesses need to report. You will have to if you’re a limited or limited liability company that’s over a year old and exceed two or more of the following criteria:
- £36m turnover
- £18m balance sheet total
- 250 employees
If you need to report, this is what you need to know about the new requirements:
What information needs to be submitted?
The information that the government requires falls into two categories:
- Narrative information: Such as average time it takes you to pay your suppliers, your standard payment terms and your dispute resolution facilities.
- Statistical information: The percentage of invoices paid late, within 30 days, within 60 days and later than 60 days.
Preparing for your submission
Once you know what you need to report an internal meeting can give you a high level understanding of how you stack up.
If your processes are letting you down, automation can help you solve bottlenecks and streamline the invoice payment journey. Besides helping you meet the requirements of the new legislation, automation can also bring reduced operating costs, reduced administration time and increased productivity in the finance department.
If you would like to understand more about Duty to Report, you might like this discussion between Concur regional director Steve Roberts and journalist Tom Herbert of AccountingWEB.
You can also access an on-demand webinar with Concur and SAP: New Duty to Report Laws: How will it impact your business?