Care homes: who, what, where?

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There has been a lot of publicity about companies that run care homes and the need for information about them to be public. Yet on the other hand there is talk about SMEs possibly not having to disclose full details of their business, to make life easier for them.

Which way do commentators want it? On one hand it seems sensible, even vital, to have care home operators’ financial information clearly visible. The reasons for this are obvious.

The Southern Cross situation, needing to either close or hand back a large part of its business because of its financial woes, mostly arose because of the actions of previous directors and senior managers. That is a matter of public record; a lot has been written about it. But is not easy to spot unless you are an expert in knowing where to find that information.

Now, there is a lot of talk about reducing red tape for SMEs. The suggestion is that those SMEs with an annual turnover of less than £440,000, net assets of less than £220,000 and fewer than ten employees could become exempt from filing accounts.

With the current rules regarding what information needs to be filed at companies house already making it more difficult than ever to establish the financial strength of some companies, surely the way forward is to have more information readily available? This would make it easier for suppliers and potential customers to choose the right company for their needs with less risk, which can only help?

Ron Bidwell is a professional credit and sales ledger manager

Posted on 22nd September 2011 by

 

 

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