News
EC proposes to make life easier for small businesses
28 February, 2009
A new proposal has been put forward by the European Commission that will allow Member States to abolish financial reporting for small businesses (micro-entities).
In the economic uncertainty of today the cut in red tape would be designed to lighten the burden on those companies with a turnover of under EUR 880,000 p.a. The European Commission has estimated that it will save approx. EUR 5.6b in this sector. While the Commission has made this proposal it is now up to the Member States and the European Parliament to make the decision.
As most smaller companies (micro-entities) are operating business at a local or regional level they have limited resources to comply with the demanding regulatory requirements and this new proposal will be seen as a real chance at making life a little easier. It has been said that this proposal will be followed with even more simplification of financial reporting by the end of 2009.
Smaller companies (micro-entities) will be defined as those companies whose balance sheet does not exceed a total of EUR 500.000 or a net turnover of EUR 1.000.000 and an average number of 10 employees during the financial year.