DIY is alive and well but, even with the amount of information available online these days, most business owners accept that they need expert help with issues relating to technical accounting and compliance.
With this in mind we’re breaking one of our unwritten rules for Enabling Entrepreneurs – to steer clear of technical issues – to talk about two very significant changes that have the potential to have a big impact on businesses of all shapes and sizes. In this particular case, it would be remiss of us not to mention them here.
The two issues we want to raise concern the introduction of a new accounting standard, FRS 102, which has the potential to significantly alter how your company’s financial position will look on paper, and the introduction of new, raised, audit thresholds.
Firstly, and it may sound a bit dry, FRS 102 for small entities is replacing the Financial Reporting Standard for Smaller Entities (FRSSE) and may affect your company’s accounting profit, tax position, existing financial covenants and distributable reserves. If you haven’t already, now is the time to understand the implications of FRS 102 for you and your stakeholders. To find out more about the new standard and how we can help, please click below.
Time to get serious about FRS 102
The second important change relates to the thresholds for audit for smaller companies. If you currently have an audit and turn over up to £10.2m, have total assets of up to £5.1m or have up to 50 employees, this may no longer be required.
However, some companies, even if they are below the threshold, have voluntary audits, perhaps because of management, funding or investor requirements. In the light of these changes, it may be time to consider an alternative that provides a review of certain key areas, without the expense of a full audit.
Our solution is ROBUST, a tailored Review of Balances, Underlying Statements and Transactions.
If you currently have an audit, but fall below the new threshold, talk to us about how we can design a tailored, cost effective review to provide the assurance that you or your stakeholders require.
An attractive alternative to audit
Talking about year-ends, 2016 was a memorable, if not tumultuous, year! I and my team at Smith & Williamson wish you a happy, healthy and prosperous New Year.