Financial Accounting and Company Secretarial
Financial accounting is a core part of what we do at Finling, and this update highlights recent developments within our team as well as important changes to UK company reporting that businesses should be aware of.
We are pleased to share that Rami Antanavicius, who leads our financial accounting and company secretarial services, has now received his ACCA practising certificate.
This means Finling now has two practising certificate holders who can review and sign off statutory accounts, strengthening our in‑house capability.
Congratulations to Rami on this fantastic professional milestone.
Our Work in Statutory Accounts
Statutory accounts preparation remains central to our service offering. We prepare:
Micro‑entity accounts
Small company reduced‑disclosure accounts
Large company and group accounts
One of our internal goals is to streamline the filing process for clients. In 2025, we reduced our average time to filing from six months to five months, and we aim to move this to three months on average over time. While this is ambitious, we are very encouraged by the progress so far.
Key Updates to Financial Reporting Requirements
From 6 April 2025, significant changes took effect that impact how companies determine their size and what they are required to file.
1. Increased Company Size Thresholds
The financial thresholds that determine whether a company is classified as micro, small, medium, or large have increased by roughly 50%. This means many businesses may now fall into a smaller reporting category, reducing their statutory obligations.
Below is a comparison of the previous and new thresholds:
| Micro | Small | Medium | ||||
|---|---|---|---|---|---|---|
| Previous | New | Previous | New | Previous | New | |
| Turnover not more than: | £632k | £1m | £10.2m | £15m | £36m | £54m |
| Balance sheet total* not more than: | £316k | £500k | £5.1m | £7.5m | £18m | £27m |
| Monthly average number of employees, not more than: | 10 | 10 | 50 | 50 | 250 | 250 |
2. Transition and “Two‑Year” rule
When determining company size for financial years beginning on or after 6 April 2025, the legislation allows companies to assume the new thresholds applied in the prior financial year. This enables businesses to benefit from size reductions immediately.
3. Streamlining the Directors’ Report
Several reporting requirements have been removed from the directors’ report where there is an overlap with other reporting requirements or little material value to users of company reporting has been identified.
Accounting for leases
A major update to FRS 102 will change how companies account for leases.
Under the new approach:
Most leases will now be recognised on the balance sheet
Companies will show a right‑of‑use asset and a lease liability
Lease costs will be split into depreciation of the asset and interest on the liability
Short‑term and low‑value leases may remain off balance sheet
Micro-entities preparing financial statements under FRS 105 are unaffected by these new requirements
These new rules are applied using a “modified retrospective” approach. This means past figures will not be restated. Instead, adjustments will be made from the start of the next financial year. At that point, businesses will record the lease liability and the asset, and any difference will be posted as an opening adjustment to equity.
What This Means for Businesses
These regulatory changes represent some of the most significant updates to UK company reporting in recent years. They may reduce reporting requirements for some businesses while introducing new considerations for lease accounting.
Want to Stay Informed?
If you’re interested in keeping up with regulatory developments, financial reporting updates, or practical guidance for business owners, follow Finling on our digital channels or get in touch with our team for more information.