If you run a charity, you’ll know that when it comes to doing the accounts, there are more complications than a ‘for profit’ business. Charity Accountants do understand these complications and the most effective ways to address these without any interruption to your operation.
The accounting requirements for charities are onerous and apply to even the smallest charity. Visit the Charity Commission for England and Wales’ website for the rules around reporting, accounting and audits depending on the size and type of charity.
When it comes to finances, there is a basic requirement to submit accounts and returns to the Charity Commission, as well as a trustees’ annual report, a set of accounts and an annual tax return. The accounting process needed also depends on the type of charity, whether it’s a Trust, a Charity Incorporated Organisation (CIO) or a charitable company limited by guarantee.
Charity Accounting Specialists
Keith Grover, Director at HB Accountants, specialises in accounting for charities and understands the complexities and challenges this involves.
“All charities need proper disclosure in all areas, but, in the case of the smallest ones, their expertise tends to be limited. The rules are not easy to get your head around and lots of the smallest charities muddle along simply hoping that they get it right. When a charity’s income rises above £25k, the statutory requirements it has to follow in terms of accounting are huge. The main problem is that every charity, even the smallest, has to have a Trustees Report as part of its financial statement, yet the report is a very wordy document with prescribed formats. This is usually when charities turn to us for our specialist accounting services.”
If you would like certainty about financial reporting requirements as set out in charity law, as well as help with accounting systems and procedures, VAT management and operational advice, contact us to make an appointment to talk to one of our charity and not-for-profit accounting specialists.
