Accounting rules for small businesses relaxed

Small firms have been told that their accounting and reporting form filling may be reduced, after the government has issued proposed changes to the auditing requirements of small and medium-sized enterprises.

The Department for Business, Innovation and Skills notes that audit and account rules are stricter in the UK than required by European Union (EU) law.

Firms with fewer than ten employees will not need to produce two sets of business accounts, under the proposals.

In addition, the government will push for EU restrictions to be lifted so medium-sized companies do not need to produce two sets of accounts.

Finally, the government will look at relaxing the audit and accounts rules for subsidiaries.

Business secretary Vince Cable said: "It's important that we free small firms up so they can grow and drive the economy."

Published on: March 8, 2011

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