Small businesses in the UK have welcomed a decision made by the European Competitiveness Council (ECC) yesterday to advance a move that will reduce the financial reporting and red tape they have to face.
The proposal passed by the ECC states that so-called 'micro-entities' that meet two of three criteria – a balance sheet total under €250,000 (£200,000), net turnover below €500,000, and fewer than ten employees on average over the financial year – will be allowed to prepare and submit skeletal accounts.
The European Parliament will be presented with the draft directive later this year. European Commissioner, Michel Barnier, said that the proposals had the potential to save around €3 billion every year, for 5.2 million small businesses across the member states.
"Today's agreement means in practical terms that the balance sheet and profit and loss accounts for these micro-businesses will be pared down to the key elements only," he said. "Publication of information will be reduced and simplified to balance sheets only and a one-stop shop."
He said he had confidence that the directive would be passed by the parliament, as he said that it struck the perfect balance between the needs for transparency and simple procedures. 
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