April 10, 2026

A micro entity accounts template is a pre-structured document that captures the information Companies House and HMRC require from a micro entity limited company each year — primarily a simplified balance sheet, basic notes to the accounts, and a directors’ declaration. To create one, you need to follow the layout set out under FRS 105, the Financial Reporting Standard applicable to micro entities, and include the correct headings for fixed assets, current assets, creditors, and net assets alongside your share capital figure. This guide walks you through what the template must contain, what each section means, and how the numbers flow from your bookkeeping records into the finished accounts. What is FRS 105 and Why Does It Govern the Template? FRS 105 is the accounting standard that applies specifically to micro entities in the UK. It was introduced by the Financial Reporting Council to give very small companies a simplified reporting framework — one that reduces the amount of information they need to prepare and file publicly compared to larger businesses. Under FRS 105, a micro entity is required to prepare a balance sheet, a limited set of notes, and a statement confirming the directors have approved the accounts. There is no requirement to prepare a profit and loss account for public filing with Companies House, although a full set of accounts — including the profit and loss — must still be prepared and submitted to HMRC with the Corporation Tax return. This distinction is important when you are building your template: you are creating two related documents. The first is the abbreviated balance sheet that goes on public record at Companies House. The second is the fuller set of accounts that goes to HMRC. Both draw from the same underlying bookkeeping data, but they present different levels of detail. Who Qualifies to Use a Micro Entity Accounts Template? Your company qualifies as a micro entity if it meets at least two of the following three conditions in the financial year: Turnover of no more than £1M Balance sheet total of no more than £500,000 An average of no more than 10 employees during the year If your company breaches two of those thresholds in two consecutive years, it moves out of the micro entity category and into the small company category, where FRS 102 Section 1A applies instead. You also cannot use FRS 105 if your company is part of a group, is a public company, is a regulated financial services company, or is a charity. What Does a Micro Entity Accounts Template Need to Include? A compliant micro entity accounts template has a fixed structure. Each section is required under FRS 105. You cannot drop sections because the figures are zero — you still need to include them and show nil where nothing applies. Section 1: The Balance Sheet The balance sheet is the core of the micro entity accounts. It presents a snapshot of the company’s financial position at the year-end date — what the company owns, what it owes, and the difference between the two, which is the net assets figure. That net assets figure must equal the total equity at the bottom of the balance sheet. Here is the structure the balance sheet must follow under FRS 105: Balance Sheet Section What It Covers Notes Fixed Assets Tangible assets — equipment, vehicles, computers Shown at cost less depreciation Current Assets Debtors, cash, stock, prepayments Amounts receivable within 12 months Creditors: due within one year Trade creditors, PAYE, VAT, director loans owed by company Short-term liabilities Net Current Assets Current assets minus current creditors Calculated subtotal Total Assets Less Current Liabilities Fixed assets plus net current assets Calculated subtotal Creditors: due after more than one year Long-term loans, deferred income Non-current liabilities Net Assets Total assets less all liabilities Must equal total equity below Capital and Reserves — Share Capital Nominal value of shares issued e.g. 1 ordinary share at £1 Capital and Reserves — Retained Earnings Accumulated profits or losses since incorporation Increases with profit, decreases with losses or dividends Total Equity Share capital plus retained earnings Must equal net assets above Every line in this structure needs to correspond to figures in your bookkeeping records. If a category has no balance at the year-end date, enter nil or a dash rather than leaving it blank. Section 2: Notes to the Accounts Under FRS 105, the notes required are minimal compared to those needed for larger companies. The standard requires the following: Advances and credits to directors — any loans from the company to a director must be disclosed, along with the balance outstanding at the year-end and the maximum amount outstanding during the year Off-balance sheet arrangements — disclosure of any financial commitments, guarantees, or contingencies not reflected on the balance sheet Average number of employees during the year — a simple figure, which for many micro entities will be one (the director) That is the extent of the mandatory notes under FRS 105. You do not need to include accounting policies, a breakdown of fixed assets by category, or detailed debtor and creditor analysis in the Companies House filing — though all of this will appear in your fuller accounts for HMRC. Section 3: The Directors’ Declaration The accounts must include a statement from the director confirming that the company was entitled to prepare accounts in accordance with FRS 105, that they have taken advantage of the small companies exemption from preparing a strategic report and a directors’ report, and that they approve the accounts. The wording is largely standardised and your accountant or accounting software will provide it. The director’s name must appear on the balance sheet itself — the balance sheet is the document the director formally approves, and it must be signed before filing. How Do You Actually Build the Template Step by Step? Once you understand what each section needs to contain, creating the template itself is a matter of setting up a document with the right structure