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Who Uses Micro Accounts?

Micro Accounts not accepted by finance company

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I have spoken to a few practitioners and some are using Micro Accounts wherever possible and others are just using FRS102 1A for everything.

We have been a bit more selective although most clients just opt for whatever is easier or cheaper. We have now seen two clients being told by finance companies that they will not accept a set of Micro Accounts to fund a new van and that they will only accept a full set with all the notes. That client made alternative arrangements through his family but the second is unable to do so and we are waiting to see if further information from us will be sufficient. If this is a sign of things to come (as was predicted by accountants and ignored by everyone else) we might just move to preparation of FRS 102 1A accounts for everyone.

Unfortunately now that we only have one set of accounts for a client, there is no alternative I can see.

Has anyone else had similar problems? 

Replies (6)

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By mabzden
17th May 2017 22:30

So far I've avoided FRS 105 accounts. I would rather spend more time now producing comprehensive accounts that will satisfy the client and any future users of the accounts (banks, HMRC, future accountants etc).

FRS 105 provides some advantages in terms of reduced disclosure. But no-one has ever died because they disclosed a few extra notes in accounts filed at Companies House.

I'm unenthusiastic about abridged FRS 102 accounts for the same reason.

Thanks (1)
By ireallyshouldknowthisbut
18th May 2017 09:00

No, our clients would send the non filleted set, which includes a P&L & notes which I issue as standard. The cost to us is virtually nil.

Or are you JUST issuing a balance sheet to your clients?

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Replying to ireallyshouldknowthisbut:
By Mallock
18th May 2017 10:18

No, they get a detailed trading account and additional schedules from our system which give various percentages and variances.

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By jon_griffey
18th May 2017 09:45

The notes required by FRS102 1A are so few that there is no need to bother with FRS105. I know that you end up reporting a bit more at Companies House with the filleted accounts, but FRS105 tells the world that the company is a tiddler.

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By Paul Scholes
18th May 2017 11:55

10 years after audit exemption came in some mortgage lenders were still sending us certificate requests on 1980s forms insisting on audited accounts. Can I suggest that this is another case of lenders not realising laws change and businesses move on. All but one of my clients are Micros and I've been doing Micro accounts for 3 years and had no problem with mortgage applications.

Ultimately, if enough borrowers tell them these are the statutory accounts, live with it, they will have to decide if they want to stay in the small micro business market or leave it to 21st century finance providers.

If they want to see accounting policies or maybe a directors' report, write them out on a bit of paper and stick them in the post.

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By Cloudcounter
18th May 2017 13:32

We've generally used micro accounts for lifestyle businesses since they became available

Only had a couple of queries, and they were both happy when we sent our lead schedules showing the makeup of the three lines in the balance sheet

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