Qualifying for FRS 105 and it being the right answer are two different things. This post walks through the three size tests a company must meet, the exclusions that rule a client out regardless of size, and the cases where FRS 102 Section 1A is the better call, including where a growing company sitting just inside the limits is heading for a transition cost either way.

Most explanations of FRS 102 are written for company directors deciding what their own business must file. This one is written for the practice. It sets out what FRS 102 is and who it applies to, the size thresholds that decide which tier a client falls under, what the periodic review changed, and the disclosure errors that cluster in transition years — the detail that actually determines whether a set of accounts is right.

Active has just released Accounts production: connect accounts and work papers with FRS 102, FRS 102 1A, FRS 105, LLP and sole trader accounts production, and file direct to Companies House.

For growing accounting firms, workpapers are rarely just workpapers. They sit at the centre of review, training, client service, management accounts, journals and team collaboration. When those workpapers live across Excel files, SharePoint folders, email trails and individual ways of working, the admin can quickly become a burden.

See how Active’s two-way integrations with Xero, QuickBooks and FreeAgent reduce rekeying, minimise errors, and speed up year-end workpapers workflows.

As I look back on 2025, one word stands out: growth. This year has been nothing short of transformative for our team, our platform, and the way we serve our clients.