Charity Accountants

Types of Charity Accounts

Charity accounts may be prepared either on the receipts and payments basis or the accruals basis. The required type of accounts will depend on the income of the charity and whether or not it has been set up as a company:

Receipts and payments

This is the simpler of the two methods of preparation and may be adopted where a non-company charity has a gross income of £250,000 or less during the year. It consists of an account summarising all money received and paid out by the charity in the financial year, and a statement giving details of its assets and liabilities at the end of the year. Charitable companies are not allowed by company law to adopt this method.

Accruals

Non-company charities with gross income of over £250,000 during the financial year, and all charitable companies must prepare their accounts on the accruals basis in accordance with the SORP. They contain a balance sheet, a statement of financial activities and explanatory notes. These accounts are required in accountancy terms to show a ‘true and fair view’.

Audit or independent examination?

Except for NHS charities, only those charities with gross income of more than £25,000 in their financial year are required to have their accounts independently examined or audited - below that threshold, an external scrutiny of accounts is only needed if it is required by the charity’s governing document.

Precisely what type of scrutiny is needed depends on the income and assets of the charity. Broadly speaking, an independent examination is needed if gross income is between £25,000 and £500,000 and an audit is needed where the gross income exceeds £500,000. An audit will also be needed if total assets (before liabilities) exceed £3.26m, and the charity’s gross income is more than £250,000.

How much Independent Examination of charity accounts cost?

The fee for our examination of charity accounts varies depending on factors such as the organization's size and turnover. For charities with a turnover ranging from £25,000 to £150,000, our average fee is £500 plus VAT.

Our Services:

1. Independent Examination:

Ensure compliance and financial transparency with our rigorous independent examination services. We meticulously review your financial records, offering insights and recommendations to enhance accountability.

    2. Charity Bookkeeping with Cutting-edge Technology:

Embrace efficiency and accuracy with our state-of-the-art charity bookkeeping services. Our team leverages the latest technologies to streamline your financial processes, providing real-time insights for informed decision-making.

   3. Payroll and Workplace Pension Solutions:

Simplify payroll and pension management with our expert services. From payroll processing to workplace pension administration, we handle the complexities, allowing your team to focus on your core mission.