LONDON (NDS) Business Minister Edward Davey today welcomed an agreement on new, simpler accounting rules which will benefit up to 1.5 million small British companies, during a regular meeting of Business Ministers from across the EU in Brussels. Small companies, or micro-entities, form the backbone of the British economy but have limited resources to comply with the same accounting requirements as larger companies. The agreement reached today will exempt these companies from some obligations, potentially saving between œ150-300 million per year in reduced administrative costs. Mr Davey said: ?I greatly welcome the progress made today in Europe to simplify the accounting rules for our smallest companies. This is a significant step in reducing red tape and a clear signal that we will take action to stop our smallest companies being held back by excessive regulation. ?I believe this shows what can be achieved by a positive and constructive engagement with the European Union – the first ever exemption for micro-entities from an existing EU directive. We now need to build on this breakthrough and I hope that further improvements can be agreed before the proposal becomes law.? Member States will now discuss the measures with Members of the European Parliament, who must also give their approval before the new rules can enter into force.

Helen Preece
Helen Preece

Helen Preece runs The Financial Management Centre in Brighton. Helen is a CIMA qualified accountant with over 15 years of accountancy and bookkeeping experience. Having previously worked in audit, practice and industry she feels she has varied experience that can be applied to all clients. Helen understands that for small business the finance and bookkeeping side is not normally the first thing on the business owners ‘To Do’ list.