Large tax bills for thousands of companies could produce a sharp rise in the number of company insolvencies this year.

Despite a slowdown in insolvencies in the last quarter, it’s highly likely we will see them rise again during 2010.

An olive branch extended to SMEs by HMRC, in the form of the Business Payment Support Service, could come back to haunt them – if they struggle to repay their deferred tax bills. The scheme has helped over 160,000 small businesses defer payments of more than GBP4bn.

Although the scheme has been extended indefinitely, HMRC is going to be taking a tougher line on extensions and new applications in future.

Simon Wicks, Reed Finance, Senior Regional Manager for the South said: “A number of SMEs will have to pay their deferred debt in the coming weeks and months – with the threat of being forced into administration if they can’t.”

HMRC point to the fact that to date, the recovery on monies due and paid on time has consistently been between 90-94%.

HMRC have not bailed out all businesses, only those that could put together a business plan to show that the money could be repaid. Those who have been allowed to defer payments will have encountered a certain degree of robustness.

2009 saw large household names go into administration. The haulage industry, print, leisure and property development industries are amongst those sectors likely to find conditions especially challenging this year.

There are additional Government schemes to help, including the reduction in the small companies’ tax rate from 22% to 21% – which has been extended to April 2011. The Capital Growth Fund is also being launched this year to provide investment for businesses looking to borrow between GBP2m and GBP10m.

“Despite these schemes, it is a fact that many businesses will now be forced to pay tax debt to HMRC, at a time when they could do with the capital to invest in growth as market conditions improve and at a time when banks are still reluctant to provide investment,” adds Wicks.

A recent poll of R3 members – the professional body for insolvency practitioners – suggested insolvency numbers will rise to 28,000 this year, against 22,800 in 2009

Interested in recruiting? For more information on recruitment and jobs offered by Reed Specialist Recruitment, please visit their website www.reedglobal.com.

Finance departments have been crucial for organisations during the recession, while many have seen their presence and strongholds increase. An ever-growing number of business leaders are also coming from the finance function.

Finance departments have been crucial for businesses during the recession, with many having stepped out of the shadows and boosted their presence and strongholds within their company.

A very real recent trend of the downturn has been the finance department becoming much more of a central point of the organisation. This has had a direct impact on the way all accountants are working, from graduates to Finance Directors and Chief Financial Operators.

Mark Gourley, Executive Business Manager at Reed Accountancy, said: “Having strong people in the accounts department will have been a real asset to businesses as they traded through difficult conditions during the recession.

“Indeed for some companies these individuals may have made the difference between a business surviving or going under. Skills in areas such as risk mitigation and cash-flow/ liquidity management will have been particularly important.

“Part-qualifieds will have been encouraged to add value wherever possible – looking for opportunities to improve efficiencies, reduce costs, provide analysis of sales/profit and so on.

“I believe the finance/accountancy department is seen less now by organisations as ‘just another overhead’, as businesses seek opportunities for the finance function to add value.” Derek Coleman, Regional Manager at Reed Accountancy Central South West Region, added: “Finance/accountancy departments have been crucial for organisations during the recession and they have generally increased their presence and strongholds. They have become central, with many leaders of organisations now coming from the finance function.”

With technical skills often taken as a given by employers, businesses try to differentiate between part-qualified candidates as potential leaders by assessing their skills in other areas, as well as looking for evidence of achievement. Part-qualifieds who develop commercial acumen (e.g., using/ interpreting the numbers to help the business achieve its goals) will be well placed to move into leadership roles in the future.

Strong people skills/communication/ managerial skills (for example the ability to communicate financial information effectively to non-financial management) will also have an advantage.

The future leaders of industry are more likely to currently be studying the ACA route. A recent statistic that suggested around two thirds of qualified accountants of FTSE 100 companies in FD or CEO roles will be ACA qualified.

That said, there are many very capable FDs out there who qualified ACCA or CIMA – and at public sector organisations with CIPFA qualified accountants in leadership roles.

“I’m sure most part-qualifieds will still initially head into traditional accounting roles upon qualification – Financial Accountant, Management Accountant, Financial Analyst, Internal Audit, Company Accountant positions for example, with some choosing to specialise in areas such as taxation, treasury or corporate finance,” added Mark Gourley.

Across the board, new opportunities for all finance staff are on the up as companies begin switching their attention away from the recession towards the future and what the next five years will bring.

Retail banks are just one example of a sector now looking for accountants who are analytical, predictive and forward thinking.

Finance job departments will be heading out of the collective ‘heads down’ survivor mode they were forced to adopt 18 months ago in the wake of the financial crisis.

We are already seeing signs they are beginning to adapt to the ‘new’ realities of the current economic recovery and a more complex and taxing regulatory environment.

Following the recession, partqualified may also find businesses more mindful of costs and that reflected in slightly less generous study packages.

This could mean less time off for study and/or more carefully worded contracts with claw-backs in place if part-qualified employees should leave the business.

After a few years post-qualification, some of today’s part-qualified professionals will find themselves in broader operational or commercial roles, having used accountancy as a platform from which to progress their career in another direction.

Interested in recruiting? For more information on recruitment and jobs offered by Reed Specialist Recruitment, please visit their website www.reedglobal.com.

Veronica King, an aesthetician student at the International Academy of Hair & Aesthetics, 4812 S. Mill Ave. in Tempe, received a $1,000 scholarship to attend Phoenix MedicalâEUR s Laser School.
King, an Ahwatukee resident, was honored for her aesthetician pledge composition. She wrote:
As an aesthetician: I pledge to practice my craft ethically and with integrity. I pledge to value and earn the trust of each and every client. I pledge to continue educating myself so that I can treat each client to the best of my ability. I pledge to be dependable and respect my clientâEUR s time. I pledge to go to work every day with a smile on my face and a positive attitude. I pledge to always be grateful that I am doing something that I love and am passionate about.
King is training to become a licensed skin care specialist. After she completes her studies and passes her state board exams, she will be able to work with clients to treat facial skin to maintain and improve its appearance. The scholarship will allow her to have more advanced training through the Phoenix Medical.
âEURœAt the International Academy of Hair Design & Aesthetics, we are always looking for ways to help our students advance and succeed in their studies, and in their future careers,âEUR said Martha Hoffman, director of education for the aesthetics program. âEURœBy providing externships with successful and prestigious salons, as well as numerous opportunities to win scholarships for advanced training, we go the extra mile to make sure our students get the most out of their education. With so many of our graduates working at beauty salons, health spas and physicianâEUR s offices, it appears that we are succeeding in our goals.âEUR
International Academy of Hair & Aesthetics offers a program in aesthetics, as well as a cosmetology program. The school is located on the west side of Mill Avenue, just south of I-60. There is covered parking for both students and patrons.
For clinic services call 480-964-8675. Online information is also available at http://www.intlacademy.biz.

MPR is a full service public relations firm.