The paper proposes these companies might file a 'Trading Statement' as opposed to a full profit and loss account, along with a simplified Statement of Position and Annual Return.

It also proposes developing commercial software that would enable business owners to have a better understanding of underlying operations that would help them identify trends and plan for the future.

The paper says that the ideas would not only benefit companies, but also users of that information such as credit checking agencies and banks, as it would encourage microbusinesses, of which 60% are considered 'high risk' or 'above average risk' to file accounts on time.

If taken forward, the proposals would benefit companies with a turnover of up to £440,000 such as Woolaston, Northampton-based Allison Printers.

Partner Matthew Willmer said he welcomed the initiative to cut red tape for smaller businesses. "It's a nightmare," he said. "It just gets in the way of running the business and takes up time that could be much better spent with customers."

The BPIF's Andrew Brown said: "It's got to be a good thing. It's going to save both time and money for companies that don't have much of either. The burden of annual reports is a heavy one."

Edward Davey, minister for corporate governance said: "Reducing unnecessary regulatory burdens on the smallest businesses can give them the freedom to innovate and grow - which ultimately benefits the entire economy and is absolutely central to the coalition’s vision for Britain. A new deregulation from EU rules targeted at micro businesses means we now have a chance to deliver these benefits."

However the idea of offering government software met a cooler welcome. Wilmer's past experience with HMRC software had proved "a joke" he said.

"It's too buggy - a waste of money really. And then when you do have a problem and have to call the technical support, that's even worse. We don't have enough time in the day for this sort of thing."

Brown agreed, adding that such software "is never going to be flexible enough to meet individual requirements."

The discussion paper is available on the BIS website and Andrew Brown said he would welcome comments on this from the print industry as the BPIF's Government and Industry Committee meets in early October, ahead of the 30 October deadline for comments to be received on the discussion paper.

Brown added: "The other question is whethere there is an opportunity here to go a little bit further. Are there things that could usefully be added to the proposals."

Email Andrew Brown at the BPIF or alternatively contact Julian Thompson at the BIS.