Over 50% of SMEs within the UK are affected by late payments, costing small firms an estimated £22,000 a year. In an announcement made on Thursday 19th September, the Government have declared an enhanced package of measures, as well as the hotly anticipated, new ‘Fair Payment Code’, in a bid to fight the problem.
Currently, law states that responsible directors of non-compliant companies who have failed to report on their payment practices could face criminal prosecutions, fines, and even criminal records. The Government have unveiled plans to go one step further, with new legislation expected in the coming weeks that will require all large businesses to include payment reporting in their annual reports, providing transparency on how they are treating small firms. As a result, company boards and international investors will be able to see how firms are operating.
In addition, plans are to step up enforcement of existing late payment performances, all in a bid to encourage cash flow, as part of Labour’s manifesto to grow the economy. By unlocking growth for 5.5 million firms, the government are hoping for more investment, with more employees hired, a boost to wages and increased export of goods.
Collaboration between the Business Secretary and the Federation of Small Businesses continues, as new laws and proposals to end bad payment culture, enter consultation.
Prime Minister Keir Starmer has said:
“We’re determined to back small businesses by unlocking their barriers to growth, and stamping out late payments is at the heart of this.”
“After years of delay, we’re bringing forward measures that small businesses have long been calling for to tackle late payments once and for all.”
In place of the old Prompt Payment Code, the new Fair Payment Code is set to open for signatories later this year, where businesses will be required to prove they have met good payment standards prior to gaining official code status.
Research published by the Department for Business, in support of the new measures, indicates the impact longer supply chains have on exacerbating payment delays, and smaller firms experiencing more issues with late invoices. A stark imbalance was evident between large and small firms, with the research highlighting administrative errors as a major factor in creating slow payments. A substantial 24% of firms confirmed that incorrectly handled invoices added to the delays.
The new measures have received support from the likes of Small Business Commissioner, Liz Barclay, and Good Business Pays founder, Terry Corby.
Liz Barclay stated “We need sustainable, resilient businesses at all levels of the supply chains, to achieve the growth the economy needs. That means paying everyone from the largest supplier to the sole trader quicker, so they have the confidence to invest, improve productivity and grow. Fair payment terms and on time payments are the key.”
Over the coming months, the Accounts Payable Association (APA) will continue to support the Accounts Payable community and our membership, guiding AP teams to adopt measures in line with the new measures and Fair Payment Code.
Jamie Radford, APA CEO, issued the following statement:
“The APA are committed to supporting the government’s initiative to put an end to late payments, which have damaging ramifications on small businesses in the UK. Our organisation recognises the importance of best practice within the entire finance function, and the implications on the UK economy when proper practices are not adhered to.”
“As well as our Annual Conference in just a few short weeks, the APA will be delivering our annual Accounts Payable Update Courses throughout 2024/25, where we will go into detail about the new Fair Payment Code and government measures. We encourage any Accounts Payable professionals who are worried about the new measures and are seeking guidance on how to achieve compliance, to consider joining us – we will be glad to help.”
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Read the full statement on gov.uk here: Crack down on late payments in major support package for small businesses – GOV.UK (www.gov.uk)
The excitement was palpable on Thursday 12th September as over 130 attendees joined the Accounts Payable Association, live on LinkedIn, for the announcement of this year’s APA Awards shortlist.
The Awards, which celebrates hard-work, perseverance and excellence of professionals within Accounts Payable, is recognised as the benchmark of outstanding achievement.
This year, records were broken as an astounding 341 nominations, documenting the successes of individuals and teams alike, were submitted for consideration. Received from over 70 organisations, and from industries including hospitality, construction, manufacturing, shared services and retail – 2024 represented the greatest number of nominations made to date.
The full list of categories, and those who have been shortlisted can be viewed below:
Categories and Shortlisted Nominees:
Wellbeing for Others Award
Employee Engagement Award
APA Leadership Award
The Claire Lomas MBE Overcoming Adversity Award
Rising Star Award
Outstanding Contribution Award
Significant Team Achievement Award
Digital Transformation Award
APA Award for Excellence
Shared Service Centre Team of the Year
Public Sector Team of the Year
AP Manager of the Year
AP Team of the Year
The awards ceremony is set to take place on 15th October at the National Motorcycle Museum, Solihull, following the APA Conference 2024. This year’s event promises to be an evening of celebration and recognition, with live music and ITV’s weatherman Des Coleman as compere and entertainer, adding to the excitement.
For more information about the APA Conference and Awards, or to secure your ticket to attend, click the button below!
As part of the Accounts Payable Association’s ongoing work to support the Accounts Payable Industry, we are pleased to announce our latest initiative, the APA Rising Star Scholarship.
The APA strive to provide opportunities for Accounts Payable Professionals to not only build their network within our inclusive community, but to also develop their skills and expertise with a full range of courses and industry-recognised qualifications.
The APA Rising Star scholarship is a unique opportunity for one, well-deserving individual, to be enrolled onto an APA Technician Qualification at no expense to themselves or employer. In support of our community, the APA will fund the winner of the AP Rising Star award to undergo the industry-recognised Qualification.
The Rising Star Award is one of 12 trophies to be presented at the APA Awards Gala Dinner on 15th October 2024, which will see over 300 AP professionals come together in celebration of the best and brightest within the industry.
There is still time to nominate either yourself, or a colleague, for the Rising Star Award, as well as all other award categories, with the deadline to do so on 31st August 2024.
Find out more about the nomination process and how you can join the celebration on 15th October.
Last week, our esteemed CEO Jamie Radford had the pleasure of attending the prestigious CICM Credit Awards as guests of O2C Labs. It was an unforgettable evening, filled with camaraderie and recognition for the outstanding achievements of teams and individuals within the credit industry.
Our highlights from the evening
Sue Chapple, the esteemed CEO of CICM, delivered a captivating opening address, delving into the rich history of the Institute dating back to its inception in 1939. Her insights provided a profound perspective on the evolution and significance of credit management over the decades.
One of the most striking aspects of the evening was the diverse array of winners hailing from various industries and backgrounds. This diversity mirrors the multifaceted nature of the payable profession, where individuals from all walks of life come together to contribute their unique skills and perspectives.
What truly resonated throughout the event was the undeniable overlap and shared challenges between the accounts payable and credit sectors. Despite the differences in focus, both industries grapple with similar obstacles, with one common denominator standing out above all else – the “People.”
At both the Credit Awards and the APA Awards, individuals remained at the heart of achieving high performance and driving business results. It’s a testament to the unwavering dedication and commitment of professionals across these sectors who understand that success is not merely about numbers, but about the people behind them.
Empowering the Industry with pivotal Partnerships
So let’s spotlight the pivotal relationship between Accounts Payable and Credit teams and why their synergy is a game-changer.
⚡ Efficiency Amplified: By harmonising AP and Credit operations, organisations unleash a powerhouse of efficiency. Streamlined processes ensure invoices are promptly processed and payments are made on time, optimising cash flow management.
💡 Insightful Decision-Making: The fusion of AP and Credit data offers a panoramic view of financial health. From identifying trends to mitigating risks, this comprehensive insight empowers informed decision-making at every turn.
🤝 Seamless Communication: Effective collaboration bridges the gap between departments, fostering seamless communication. Whether it’s resolving discrepancies or addressing vendor concerns, a united front ensures swift resolutions and strengthens vendor relationships.
🌐 Global Impact: In today’s interconnected world, the impact of collaboration transcends borders. By aligning AP and Credit strategies across regions, organisations not only ensure compliance but also enhance their global footprint.
💥 Driving Innovation: Collaboration breeds innovation. When AP and Credit teams join forces, they become catalysts for transformative change. From adopting cutting-edge technologies to pioneering best practices, this synergy propels organisations towards the forefront of industry innovation.
🚀 Future-Proofing Success: In a landscape characterised by constant evolution, collaboration is the cornerstone of future-proofing success. By fostering a culture of collaboration, organisations adapt, thrive, and remain agile in the face of ever-changing financial landscapes.
👥 As we champion collaboration, let’s recognise the invaluable role of every individual within the AP and Credit ecosystem. Together, we’re not just shaping the future of finance we’re redefining it.
As we reflect on the inspiring evening at the CICM Credit Awards, let’s carry forward this spirit of collaboration and appreciation for the invaluable contributions of individuals within our respective industries. Together, we can continue to elevate the standards of excellence and drive positive change within the realms of credit management and accounts payable.
Thank you Credit Community 🙏
Special thanks to Chris Sanders FCICM , Laurie Beagle FCICM & Kerry McKevitt MBA from The Order to Cash Laboratory Ltd for the invite & hospitality.
The Accounts Payable Association, at the forefront of pioneering solutions for professionals in the industry, is delighted to announce its newly enhanced website crafted exclusively for Accounts Payable Professionals.
In response to the dynamic landscape of financial management and the increasing demand for streamlined processes, the Accounts Payable Association is thrilled to unveil a redesigned and feature-rich website catering to Accounts Payable Professionals. This online platform aims to empower experts with cutting-edge education, resources, and an easy-to-use Events Calendar, giving professionals the tools and knowledge to manage and optimise Accounts Payable processes.
What does the website have to offer?
The newly launched website offers a comprehensive suite of features designed to enhance efficiency and productivity for Accounts Payable Professionals. Key highlights include:
• Intuitive Interface: A user-friendly interface ensures seamless navigation, providing quick access to essential tools and resources.
• Resource Hub: A robust resource hub houses industry insights, educational masterclasses, industry news and updates on best practices, equipping professionals with the knowledge to stay ahead in a rapidly evolving Accounts Payable landscape.
• New E-commerce Journey: Discover a streamlined and user-friendly e-commerce experience for easy access to association courses, memberships, and more.
• Dynamic Events Calendar: Never miss out on an industry event again with our comprehensive Events Calendar. Stay up-to-date on future events, workshops and webinars, with the ability to register interest and secure your ticket(s) there and then.
“Accounts Payable Association is dedicated to empowering Accounts Payable professionals with the tools and knowledge they need to succeed. The launch of our new website signifies our commitment to providing the Accounts Payable industry with a community and opportunity to enable Professionals to navigate the complexities of Accounts Payable easily and efficiently.”
Jamie Radford, CEO, Accounts Payable Association