Small Company Compliance

Financial reporting

Our professionals have expert knowledge of UK and International accounting standards and offer a full range of services including:

• Statutory financial statements
• Interim management information
• Projections, forecasts and budgets

Technical financial advisory

Specialist teams within Menzies offer a range of financial reporting advisory services including:

• FRS 102 transition
• International financial reporting standards (IFRS)
• GAAP conversions, including IFRS and US GAAP
• Advice on technical accounting issues
• Advising on the impact of changes to accounting standards

A small company, or Limited Liability Partnership (LLP) is one which fits the criteria as set out in the Companies Act 2006.

An entity qualifies as small if it meets any two of the following criteria:

• Turnover of £10.2m or less
• Balance sheet total of £5.1m or less
• Fewer than 50 employees

A further category of small entity exists, known as a micro-entity.

An entity qualifies as a micro entity if it meets any two of the following criteria:

• Turnover of £632k or less
• Balance sheet total of £316k or less
• Fewer than 10 employees

Incorporated businesses in the UK are generally required to file their financial statements 9 months after the year end date.

Small companies can choose to report their financial statements using the reduced disclosure framework offered under Section 1A of FRS 102.

While section 1A of FRS 102 enables small entities to benefit from significant exemptions in the disclosures they are required to include in their financial reporting, the recognition and measurement applied to accounting transactions largely remains the same as those applied to larger businesses.

Micro entities may opt to apply the accounting standard FRS 105. This provides the benefit of further reductions in disclosure, but also the benefit from some significant simplifications in the recognition and measurement applied to their transactions.

Our team of professionals not only offers technical advice on the application of accounting standards, but also offers support and guidance on the impact of taking exemptions that may be available, or making accounting policy choices.

Our service ensures that key management in the business understands the statutory accounts and has the information available to make key decisions based on the financial results presented.

Whilst the preparation and delivery of the accounts is the responsibility of the Directors, or Members in the case of an LLP, it is unusual for those individuals to have an intricate knowledge of UK accounting standards.

Our compliance advisory enhances the service we provide from simply preparing the financial statements based on the day-to-day bookkeeping, to providing targeted advice on specific areas of accounting.

Whether this is advice on the application of accounting standards, or helping to outline the importance of choosing the right accounting policies, our advice is always tailored to our clients, putting their long term goals strategic plans first.