File your accounts early to avoid a poor credit rating warns taylorcocks

Leading firm of accountants and business advisors, taylorcocks, is warning businesses to file their accounts within eight months of their financial year-end or risk having their credit rating slashed. 

Audit and Compliance Manager at taylorcocks, James Blake, said: “We have recently helped several companies who have had their credit ratings cut because the credit agency they check with has changed its algorithms, so that when a company hasn’t filed its accounts within eight months of their year end, its credit rating is removed. This is because the statistics the credit agencies use suggest that companies are more likely to go into liquidation the later they file their accounts. The credit agencies believe that company’s who don’t file their accounts early are trying to hide their results. 

“If one credit agency is doing this then it is quite plausible that others are too, or will soon follow suit. 

“Many businesses will be unaware that they only have eight months to file their accounts or risk losing their credit rating. This can have a massive impact, especially as many of their customers will either use the credit agencies when considering offering credit or use debtor insurers who rely on the credit agencies for setting their limits. 

“There are many factors which affect a company’s credit rating, however, only some of them are within the company’s control - filing accounts quickly is one of them. Therefore, unless there is a good commercial reason for holding onto the accounts until Companies House deadlines, it is highly advisable to submit them as soon as possible, preferably within eight months. 

As a result of the recession, many small firms in the UK are carrying a credit rating that may negatively affect their ability to obtain credit finance and favourable credit terms from suppliers. However, other than filing your accounts in good time, there are a few other ways in which you can help improve your business’s credit rating, such as: 

• Consider filing full rather than abbreviated accounts 
• Where possible pay suppliers on time
• Keep your personal finances in order
• Make sure that your SIC (industry code) on your Companies House Annual Return is correct 
• Review the credit agencies reports for your company to identify and address the issues restricting your credit rating
• Decrease the balance on your business credit cards
• Review the charges registered on your company’s assets and ensure they are correct