Small UK businesses to benefit from simplified reporting requirements

News Article - 02 September 2011
Category: Business

Millions of small UK businesses are set to benefit from new Government measures that will simplify their reporting processes.

The Department for Business and Financial Reporting Council revealed its plans to ease reporting requirements for up to five million micro-entities within its discussion paper,Simper Reporting for Smaller Businesses.

The changes will enable businesses to file only a simplified trading statement - instead of the current profit and loss account - a simplified statement of position and a simplified annual return.

Small businesses would have the ability to integrate business accounting software to help them prepare financial information and better plan their financials processes.

Ed Davey, minister for corporate governance, said: "Reducing unnecessary regulatory burdens on the smallest businesses can give them the freedom to innovate and grow, which ultimately benefits the entire economy and is absolutely central to the Coalition's vision for Britain.

"A new deregulation from EU rules targeted at micro-businesses means we now have a chance to deliver these benefits.

"The financial reporting regime must also serve the users of the information published by companies, whether they are customers, banks or government agencies. So we look forward to receiving responses to our proposals from a broad range of interested parties in the coming months."

Integrated financials and accounting software enables small and medium-sized enterprises (SMEs) to manage daily routines faster and more effectively, using reduced resource.

The software provides businesses with up-to-the-minute management information with total visibility of their accounts. Businesses also have the ability to enter and revise budgets for every part of their business, as well as set and amend forecasts for customers, suppliers and projects.

Responses to the discussion of Simpler Reporting for Smaller Businesses can be made by businesses until 30^th October.

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