Since April 2017, all medium and large UK companies have a duty to report publicly on their payment policies, practices and performance. This requirement was launched by the Department for Business, Energy and Industrial Strategy (BEIS) following UK Government concerns over the administrative and financial burdens faced by companies because they are not paid on time.
The “Payment Practice and Performance” report in SoftCo’s Advanced Analytics module provides UK companies with all the information that they are required to submit as part of their statutory obligations. UK companies with a December year-end should now be preparing to submit these Payment Practice and Performance reports. These statutory reports are due within 30 days of each six-month period and are aligned with the business’s key financial reporting dates.
With supply chains having been disrupted and many organizations forced to suspend their operations for periods of time since the start of the Covid-19 pandemic, payment practice performance has never been more important in ensuring businesses are protected.
Given the levels of information required, any organization subject to this statutory requirement should have an Accounts Payable system in place that provides detailed, up-to-date, Payment Practice and Performance information for reports to be submitted on time and with accurate information included. Without an automated invoice process in place, businesses will struggle to pay all vendors on time and will likely lack visibility over payment performance and payment terms agreed with all vendors.
If you would like to learn more about SoftCo’s Accounts Payable Automation solutions and the advanced Analytics module, you can request a demo here.