Welcome to the second of our series of blogs on accounting changes.
All companies have to file their accounts at Companies House each year. Micro, small and medium companies have the option of submitting a little, or significantly, less than their full accounts.
Currently, small companies have two alternative options, if they don’t want to file their full accounts. They can file either:
- full accounts but remove the directors’ report and/or profit and loss account, or
- abbreviated accounts
For most of our small company clients, we file abbreviated accounts – these are a simplified set of accounts, with no directors’ report, no profit or loss, a stripped-back balance sheet, and a limited number of notes.
For accounting periods starting on or after 1 January 2016 (for full years, this means 31 December 2016 year ends onwards), this option of filing abbreviated accounts disappears. What this means for a small company is that, while the directors’ report and profit and loss account still don’t need to go to Companies House, the full balance sheet and all the notes will be filed – this is more disclosure on public record than this size of company will have had before.
This could mean that companies that qualify as “micro” but have previously prepared “small” accounts may wish to prepare “micro” accounts in future. However, there are differences between small and micro accounts which make it more appropriate for your business to prepare small accounts, even if it does qualify as micro. These differences will be explained in a future blog, so watch this space…. (Alternatively, if you are so excited about this that you can’t wait, just give us a call on 0116 242 3400!)
Coming soon….. “What’s Changing for Small and Medium Companies?” Katie Kettle, Technical Manager