Credit ratings expert calls SMEs to show ‘financial transparency’ if they want to avoid lending decisions being based on accounts compiled during the recession. Confidential financial information may have to be disclosed by small and medium sized companies if they want to avoid lending decisions being based on accounts compiled during the recession….

Confidential financial information may have to be disclosed by small and medium sized companies if they want to avoid lending decisions being based on accounts compiled during the recession.
An economic upturn is expected in 2010 but credit decisions for small to medium enterprises, the bedrock of the UK economy, may be based on statutory accounts two years old, a credit ratings expert and the UK’s largest trade credit insurer have warned.

If you are in any doubts about the state of your finances, then please contact us and we arrange to dicuss your concerns and put in place systems to help.

BT Business has launched an online accounting application aimed at SMEs and their advisers. It will offer Xero, which its makers claim to be “The World’s Easiest Accounting System”, as Software as a Service meaning that users will simply need to log on from any Internet access point.

To sweeten the deal to new users, there is a 30 day free trial for people who are interested in trying it.

If your concerned about the state of your company’s finances during this tough time, then give us a call and we arrange to come and discuss our services and help get you in the right direction.

HM Revenue and Customs has launched an online scheme for secondary school students to learn about tax issues. The resource will contain modules on income tax, national insurance and tax.

The website contains materials to study, as well as online games and videos and to top it off the classroom favourite – a quiz!

The aim of the site is to close the tax gap and make sure that future HMRC customers feel that the tax system is simple for them and even-handed.

Visit Tax Matters to find out more.

Nearly 100 businesses will fail every day this year, research by BDO Stoy Hayward shows. According to the report, low interest rates and policy measures aimed at boosting the economy are not likely to halt the rate of UK business failures until at least 2011, paving the way for a far worse picture to come in 2010 where 40,400 (111 businesses everyday) are expected to go under.

The economy has already shrunk by 1.9% and further contractions are expected throughout the year. The biggest pinch will be felt in the sectors controlled by consumer spending with the ordinary person spending less on themselves. Hair dresses particularly are noticing customers taking longer between cuts.

Rising unemployment, weaker earnings growth and reduced perceived wealth levels due to declining asset prices are all likely to continue late into 2009/2010.

New powers for HM Revenue & Customs will see £2,000 a year from taxpayers’ salaries deducted to recover tax debts, in a move that accountants fear could cause taxpayers serious financial hardship and leave other creditors out of pocket.
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