BusinessBusiness RecoveryCompanies urged to beware ‘recession’ accounts

Companies urged to beware 'recession' accounts

Private businesses about to file their 2009 accounts warned that a more up-to-date picture may be needed to give an accurate reflection of their financial strength

Private companies may have to provide confidential accounts in order to
provide a meaningful snapshot of their financial position.

These
calls have been repeated by the credit insurance community,
which provides
cover against the risk of a company defaulting on a payment after receiving
credit by a supplier.

“Recession era” accounts from December 2009, due by September, may have to
include the management accounts which are compiled on a monthly basis if they
want to preserve their credit scores.

Xavier Denecker, UK managing director of credit insurer Coface, told
the
Daily Telegraph:
“If their situation is improving in 2010 then let them
provide credible management accounts and our credit appetite will increase.”

For some time, the credit insurance community has been urging companies to
hand over management accounts, warning that it could threaten the recovery of
the UK economy if businesses refused.

Fabrice Desnos, chief executive of Euler Hermes UK and one of the most vocal
campaigners for more timely accounts, added: “If they feel the information they
are publishing in Companies House will reflect negatively on them and they have
a better story to tell I can only encourage them to contact credit insurers.”

Further reading:

Desnos:
Failures not the fault of credit insurers

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