A Taunton accountant is urging Somerset business leaders to get ready to take advantage of upcoming changes in auditing rules.

Michael Cahill, a partner at Taunton-based accounting firm Albert Goodman, is putting business owners on notice about the proposed changes in company size thresholds.

These changes, announced by the UK Government, will streamline and simplify reporting obligations.

Commencing from 1 October 2024, the changes will see a 50 per cent increase in two of the three thresholds that companies must consider when determining if they are legally obligated to undergo a statutory audit.

The turnover threshold will rise from £10.2m to £15m, while the gross assets threshold will increase from £5.1m to £7.5m.

However, the threshold for the number of employees will stay the same at 50.

Commenting on the changes, Mr Cahill, who specialises in providing accounting, tax and commercial advice to businesses, said: "The increase in company size limits and simpler reporting requirements will be welcomed by businesses across the region."

Scores of businesses across Somerset are predicted to be reclassified from "medium" to "small" due to the changes, making them eligible to claim the audit exemption and benefit from the more simplified reporting.

Somerset County Gazette: Michael Cahill is a partner at Taunton-based accounting firm Albert Goodman

Mr Cahill continued: "This is a welcome bid to reduce red tape and financial pressure, but it is vital that business leaders who could now benefit from the audit exemption carefully consider the best course of action for their organisation."

"For some businesses, continuing with a voluntary audit will be the right thing to do.

"However, for those that feel they are able to take advantage of the audit exemption there is a real opportunity to reinvest the time and money saved in other areas."

"Where businesses are able to reduce their compliance cost, we often see that they want to explore working with us in other ways which add value to the business."

Albert Goodman, headquartered in Taunton, has been assisting businesses across the South West for over a century.

It also operates in various other locations, including Bristol, Yeovil, Weymouth, and Weston-Super-Mare.