Australian Businesses are paying invoices more slowly, hurting smaller firms’ cash flow, and small businesses want financial relief with simpler taxes.

Dun and Bradstreet reported that in the March quarter, the average business payment terms increased slightly, by .2 days, to 54.1 days, although that was down on the March 2009 quarter figure of 57.4 days.


Larger companies, with 500 staff or more, had their payment terms increase by 2.1 days to 58.9 days in the last quarter. 

Firms with 200 to 499 staff increased payment terms by 1.32 days to 55.3 days. 

Companies with 50 to 199 staff paid in 50.3 days. 

So while the economy improves, small businesses, in particular, have difficulty with cash flow, and are not getting their invoices paid promptly. 

A survey of 750 small businesses by PricewaterhouseCoopers reported that 80% of small Australian companies hope that the Henry tax review will simplify business taxes. 

A range of 56 Federal and State government taxes currently apply and 78% of those surveyed want a minimising of taxes – 60% want better deductions for capital outlays, 57% want state taxes to be consistent, and 54% want simpler income tax rules. 

Small companies are in the position of having to cope with a strain on their cash flow due to the slow payment of their invoices, being bogged down with red tape and the cost of compliance requirements of a complex tax system. 

We help small Australian firms by sending them qualified prospects from our Local Search facility in our Business Directory at no cost to them. Most of the 1.2 million businesses listed are small companies.

 

Monte Huebsch, CEO.