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Micro-entity accounts

How to Read Micro Company Accounts

Reading micro company accounts is mostly about three questions: what the company owns, what it owes and whether it can pay its bills. The balance sheet answers all three.

By the Micro Entity Accounts teamUpdated 9 November 20262 min read

Where to find them

Every UK company's filed accounts are free to view on the Companies House website. Search for the company, open the filing history and download the latest accounts.

Start with the balance sheet

The balance sheet is a snapshot on the year-end date. Read it in this order:

  1. Net assets. Capital and reserves tell you whether the company is worth more than it owes.
  2. Current assets versus creditors due within one year. If short-term debts exceed short-term assets, the company may struggle to pay bills.
  3. Cash at bank. A healthy cash balance gives flexibility.
  4. Director loans. Large amounts owed to or by directors deserve a closer look.

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The notes

Check the average number of employees, accounting policies and any commitments or guarantees. They show how the company operates.

What you will not see

Micro-entity accounts are short. The public copy may not include a profit and loss account, so turnover and profit may not be visible. That is changing under reforms signalled for April 2027. Read the changes.

Warning signs

  • Net liabilities for several years running.
  • Accounts filed late repeatedly. Check the filing history.
  • Large amounts owed to directors with no clear repayment.
  • Very small cash balances alongside large creditors.

Reading your own accounts

If you are a director, ask your accountant to walk you through the figures each year. See using accounts to run your business and the template guide.

Frequently asked questions

Can I see a company's profit from its micro-entity accounts?

Often not, because the profit and loss account can be omitted from the public copy today. Other sources, such as credit reports, may provide estimates.

ME

The Micro Entity Accounts team

UK accountants for micro-entity companies

We prepare and file micro-entity accounts, Company Tax Returns, VAT returns, payroll and confirmation statements for UK limited companies. Our guides are checked against GOV.UK and Companies House guidance and updated when the rules change.

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