The proposed reduction in company size thresholds might be a welcome relief from red tape for small businesses, but it presents both challenges and opportunities for accountants.
In March 2024, the former UK government announced plans to increase the turnover and balance sheet thresholds that define a company’s size by 50%.
These thresholds dictate the amount of information your clients must disclose in their annual financial statements and whether they require a statutory audit.
This change is expected to reduce corporate reporting burdens for 132,000 Small and Medium-sized Enterprises (SMEs), meaning thousands will no longer need a statutory audit.
For accountants, these changes could lessen workloads but might also pressure fee income due to reduced services. However, experts suggest it also opens up opportunities to offer additional value-added services.
Read this article, which explores the changes and how your accounting firm might adapt if these proposals are implemented.
