Latest research from insolvency and restructuring company R3 has shown that the amount of overdue invoices across the country has risen for the 3rd month in a row. Anybody who runs a business will realise that this of great concern as late payments can play havoc with your cash flow situation and cause real problems.
Rising Costs Of Raw Materials And Rising Energy Prices
The research found that there were nearly 95,000 invoices that had gone past their payment deadline on company books across the country in May. It is likely that many are struggling to pay for products and services on time due to the rising costs of raw materials and rising energy prices, but this has a knock on effect which affects the whole economy.
A Reflection Of Wider Economic Issues
Talking about the issue of late payments in an article in the Belfast Newsletter, R3 in Northern Ireland chair James Neill, explained:
“The increase in the number of overdue invoices in Northern Ireland is likely to be a reflection of the effect wider economic issues are having on the country’s businesses.
“Over the last few months we have witnessed significant inflationary pressures in the form of fuel and energy cost increases, and these have occurred just as Covid restrictions have lifted, so businesses have had little time to draw breath, let alone recover.
“I would urge anyone who owns or runs a business in Northern Ireland to keep a keen eye on their finances over the next few months and seek advice if they are worried.
“Seeking advice as soon as you become concerned about your business typically gives you more options for improving its situation than if you’d waited till the problem worsened.
“And businesses in financial distress can be turned around – but there are more options for doing so if you seek advice early rather than waiting till the problem spirals into something bigger.”
Of course he is absolutely right, if you try to ignore a problem in the hope it will go away the issue will only get bigger and bigger until it is an obstacle too big to overcome. Businesses in financial distress can be turned around but they often need help to do so, which is where someone like we can come in.
At WHR Accountants we have huge experience in these types of matters and can give invaluable advice, guidance and support where it is most needed. If you require any help please give our offices a call on 028 3752 2909.