Switching your accounts from FRS 105 (micro-entity) to FRS 102 Section 1A

Each accounting period is prepared under one accounting standard, its Accounts Type. Most small companies start on Micro-entity (FRS 105). If you need fuller accounts you can switch the period to Small company (FRS 102 Section 1A). The notes, the accounting policies, how the trial balance is grouped and the working papers are all different under each standard, so switching clears the period’s accounts data and sets it up again for the new standard. You then need to re-enter or re-import your figures. This article explains what is cleared, how to switch and how to get your figures back in.

When to switch

Common reasons to move from FRS 105 to FRS 102 Section 1A:

• The company is no longer a micro-entity. It has gone over two of the three micro-entity limits for two years running. For periods starting on or after 6 April 2025 the limits are turnover £1 million, balance sheet total £500,000 and 10 employees.
• Someone needs more detail. A lender, investor or the directors want the extra notes 1A gives, for example tangible fixed assets, debtors and creditors broken down.
• The company holds investment property or other assets at fair value. FRS 105 doesn’t allow revaluation.

The same steps work the other way, from FRS 102 Section 1A back to FRS 105, and switching back clears the data in the same way.

Before you switch: what is cleared and what is kept

Switching the Accounts Type clears these for the period:

• The trial balance: every figure for this year and the prior-year comparatives, whether you typed them, imported them from a spreadsheet, synced them from Xero or QuickBooks or entered them in Simple Entry.
• Journals and rounding journals, and any breakdown of profit and loss lines.
• Notes and accounting policies, including any wording you changed. The default notes for the new standard are added back automatically.
• Working papers: answers, review points and links to trial balance lines.

These are kept:

• Directors, the company secretary and the signing director.
• The registered office and other addresses, and the period dates.
• The Corporation Tax computation inputs you entered yourself: capital allowances and fixed asset additions, tax adjustments, losses brought forward and loans to participators.

Before you switch:

1. Keep a copy of your figures. If you imported a spreadsheet, keep the file. If you typed the figures in, download the accounts PDF from View Accounts first, or note the balances, so you have something to work from.
2. Copy any note or policy wording you wrote yourself, so you can paste it into the new notes.
3. Write down your journals, so you can post them again afterwards.

When you can’t switch

The Accounts Type is fixed once the period has been filed or locked. Instead of the Edit button you’ll see one of these:

• Cannot change — the accounting period is locked. Unlock the period first if you need to change it.
• Cannot change — the Corporation Tax return has been submitted
• Cannot change — the accounts have been submitted to Companies House

A return or set of accounts that has already been filed was prepared under the old standard and stays that way. If you need to refile under a different standard, contact support.

Switch the Accounts Type

1. Open the accounting period. The Overview page lists the period settings. Find Accounts Type and click Edit.

2. In Change Accounts Type, choose Small company (FRS 102 Section 1A). Read the warning: it lists what will be cleared and links back to this article.
3. Tick I understand the data listed above will be cleared, then click Change Accounts Type.

The page reloads and Accounts Type now shows the new standard.

Get your figures back in

Open Trial Balance from the left menu and put the figures back in the way you entered them the first time. The trial balance is now grouped the FRS 102 Section 1A way, but the accounts themselves (Sales, Rent, Cash at bank and so on) are the same, so your existing spreadsheet or ledger still maps across.

• Imported from a spreadsheet: the trial balance start screen opens, as shown below. Click Upload a file and import the same file again. Accounts you mapped before are remembered. See Import a trial balance from a spreadsheet.
• Connected to Xero or QuickBooks: the start screen offers Sync from Xero (or QuickBooks). Click it to pull the trial balance in again.
• Manual Entry: the grid opens with every account at zero. Type the debits and credits in again from your copy.
• Simple Entry: Simple Entry is for micro-entity (FRS 105) accounts only, so after switching, Trial Balance opens the full manual-entry grid instead. Enter the same figures there against the full chart of accounts.

Prior-year comparatives are cleared too. If last year’s period is in Tax Optimiser, click Pull in Prior Year Figures on the trial balance to copy its figures into the comparative column. This works even if last year was prepared under FRS 105, because figures are matched account by account. The prior-year dates must match last year’s period. For an imported trial balance, last year’s period must also be locked. Otherwise, re-import a file that includes the comparatives, or type them in.

For the different ways in, see Getting your figures in.

After the figures are back

• Review the notes. FRS 102 Section 1A has more notes than FRS 105, for example tangible fixed assets, debtors, creditors and the accounting policies. They start with the default wording and pick up figures from the trial balance. Paste back any wording you saved. See Notes to the accounts (FRS 102 Section 1A).
• Post your journals again from Actions → Journal List on the trial balance.
• Check the balance sheet balances and that profit before tax matches what you had before.
• Check the Corporation Tax computation. Your capital allowances and adjustments were kept, but the profit they start from comes from the trial balance, so the tax figures fill in again once the figures are back.
• If you use working papers, answer them again for the new standard.