Major Changes to Accounts Filing – What Small Businesses Need to Know
- Asia Bashir
- Aug 25
- 2 min read
The Economic Crime and Corporate Transparency Act, which became law in 2023, is set to bring some of the biggest changes to company accounts filing in decades.
The Act was introduced to strengthen the role of Companies House, safeguard the UK business environment, support national security, and crack down on economic crime. At the same time, it aims to deliver a more transparent and reliable companies register that underpins trust in UK business activity.
While these goals are positive, the new rules mean significant changes for small, micro, and dormant companies when it comes to preparing and filing accounts.
End of Abridged Accounts
From 1 April 2027, Companies House will phase out the use of abridged accounts.
At present, small, micro, and dormant businesses can file abridged accounts – a simplified version containing only a balance sheet with limited accompanying notes.
However, under the new rules, companies will be required to file much more detailed financial information:
Micro-entities: must file a balance sheet and a profit & loss account.
Small companies: must file a balance sheet, profit & loss account, directors’ report, and auditor’s report (unless exempt).
Abridged accounts: will no longer be accepted.
This means, for the first time, many businesses will need to prepare and file a full profit and loss report, increasing the level of financial detail made public.
Mandatory Filing Through Commercial Software
Another major shift is the move towards digital-only filing.
From 1 April 2027, all company accounts will need to be submitted directly to Companies House through commercial accounting software. Paper filings and the current online web filing service will no longer be available for accounts submissions (although they will still apply to some other statutory filings).
For businesses already using platforms like Xero and QuickBooks, the transition will be straightforward. But for those still working with Excel spreadsheets or paper ledgers, this marks an urgent need to move to professional accounting software.
How A to Z Finance Solutions Ltd Can Help
These upcoming changes represent a significant shift for many small businesses. Preparing more detailed accounts and switching to digital filing requires time, planning, and the right support.
At A to Z Finance Solutions Ltd, we work closely with small and micro businesses to make compliance stress-free. Our team can:
Prepare detailed accounts that meet the new Companies House requirements.
Help you transition smoothly to compliant commercial software.
Ensure your filings are accurate, timely, and hassle-free.
Don’t wait until 2027 to prepare. By acting now, your business will be ready for the transition with no last-minute rush.
Speak to our team today about how these changes affect your company and the steps you can take now to stay compliant.
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