Large numbers of small business insurance holders will be affected by changes to accountancy rules, it has been claimed.
The Forum of Private Business (FPB) and the Finance & Leasing Association suggested that proposals in an International Accountancy Standards Board discussion paper will cause problems to firms using leasing and hire purchasing.
According to the organisations, the proposals will mean that the UK's small business insurance customers will need to add all leased equipment to their balance sheets, creating extra bureaucratic burdens.
Phil Orford, chief executive of the FPB, pointed out that leasing is often used by small business insurance in a bid to reduce their costs, which could be negated if they have to follow more complex accounting rules.
He added: "Rules and regulations must exist to facilitate best practice and productivity and not unjustifiably add to the bureaucratic burden faced by entrepreneurs."
Earlier this month, the FPB claimed that small business insurance customers in the service sector spend more than £4 billion each year complying with red tape.
