The Payment Times Reporting Scheme (PTRS) is an initiative aimed at enhancing payment times for small businesses. By mandating large businesses and select government enterprises to report on their payment terms and practices, the PTRS fosters transparency and accountability in the business landscape.
Any non-compliant entities have their names published by the Payment Times Reporting Regulator, who also has powers to follow this up with issuing infringement notices.
While this is acts as a good incentive to ensure compliance with PTRS regulations, going beyond mere adherence can enable organisations to extract significant value for their operations and relationships.
Here we’ll explain how, exploring ways businesses can leverage PTRS regulatory compliance to create tangible benefits and foster positive outcomes.
Four ways to leverage PTRS compliance for business benefit
Automating compliance: One of the primary challenges businesses face with PTRS compliance is the manual effort required for reporting. Embracing automation not only streamlines the reporting process but also minimises the risk of errors inherent in manual methods. By implementing end-to-end automation organisations can ensure accurate and timely reporting, thereby avoiding penalties and regulatory scrutiny.
Maintaining vendor data integrity: PTRS compliance presents an opportunity for businesses to enhance the accuracy and completeness of their vendor master data. By consistently updating vendors’ PTRS status, ABNs and verifying vendor GST registrations, organisations can mitigate the risk of processing false and duplicate invoices and ensure compliance with regulatory requirements.
Understanding supplier dynamics: PTRS data offers valuable insights into supplier relationships and transaction patterns. By analysing the proportion of transactions attributed to small, medium, and large organisations, businesses can tailor their procurement strategies, and strengthen partnerships with key suppliers. Furthermore, organisations can appropriately model their payment terms to influence cash flow management and improve operational efficiency.
Driving strategic decision-making: By continuously monitoring transactions for payments made outside of agreed payment terms, overall financial performance can be improved through the identification and remediation of poor processing behaviour.
While PTRS compliance is a regulatory necessity, it also provides an opportunity for businesses to extract significant value by leveraging the scheme to drive operational excellence and efficiency. From automating compliance processes to enhancing vendor data integrity, PTRS offers a wealth of opportunities for organisations to optimise their business practices and foster mutually beneficial relationships.
Satori can help businesses automate the PTRS process and leverage the efficiencies and benefits that automated compliance can deliver. For more information on how we can help, please check out our PTRS solution or contact us on [email protected].
