Charity accounts

All charities, whether registered with the Charity Commission or not, must prepare accounts and make them available on request. In addition, registered charities must prepare a trustees’ annual report.

All Charitable Incorporated Organisations (CIOs), irrespective of income, and all other registered charities whose gross yearly income exceeds £25,000, have to file accounts and the trustees’ annual report with the Charity Commission.

Bevan & Buckland’s specialist charities team are proud to work with many of Wales' leading not-for-profit organisations. We currently provide services to a range of not-for-profit clients such as charities, housing associations and other public sector bodies.

Over the past 20 years we have developed our specialist knowledge of this sector which has allowed us offer a high quality service at an affordable price. We are able to provide a range of services tailored to your needs, and by doing this we have helped many of our clients grow and flourish. We now work with a wide range of clients from small community charities with turnovers of less that £10,000 up to national charities who work across Wales.

Accurate accounts are critical to help you understand how your charity is performing. We will help you by identifying areas ways to ensure you claim all allowances to reduce tax bills.

We will meet with you to ensure the accounts are understood and that they can be interpreted in a way that will improve your charity’s performance.

When preparing your accounts, we will also look for ways to improve all your systems and processes, giving you clear, detailed feedback ways to improve your accounting systems.

Accounts also now need to be tagged using iXBRL, which is a way of tagging financial data to create abridged accounts. Without the correct software, this can become a laborious and manual task. Our accounts software is fully iXBRL compliant and we file tagged accounts as standard and at no additional cost to our clients.

Trustees’ annual report

The trustees’ annual report is an important milestone in a charity’s life, a chance to take stock of how the year compared to the trustees’ plans and aspirations, a time to celebrate successes and achievements, and to reflect on difficulties and challenges.

The trustees’ annual report is also an opportunity to highlight the main activities or significant activities undertaken in order to carry out the charity’s purposes for the public benefit. The report’s audience is not just trustees and members, funders, donors and beneficiaries, but also the wider public who have an interest in what charities do and what they achieve.

The basic contents of the trustees’ annual report are mandatory. However, smaller charities which are not subject to statutory audit are not required to provide as much information as larger charities, which are legally required to have an audit.

The trustees’ annual report need not be lengthy. A good trustees’ annual report explains the charity’s aims and how it is going about achieving them. It meets all the legal requirements and provides a balanced view of the charity’s structure, aims, objectives, activities and performance. Importantly, it brings the charity to life and, for those charities that rely on voluntary income as their primary source of funding, provides donors with the opportunity to understand how their money was spent and the difference it has made.

Charity accounts may be prepared either on the receipts and payments basis or the accruals basis, depending on the income of the charity and whether or not it has been set up as a company.

Accruals accounts

Non-company charities with gross income of over £250,000 during the year, and all charitable companies, must prepare their accounts on the accruals basis in accordance with the Statements of Recommended Practice (SORPs). SORPs are sector-driven recommendations on accounting practices.

These accounts must contain a balance sheet showing the charity’s financial position at the end of the year, a statement of financial activities (SoFA) and explanatory notes. The SoFA should show all incoming resources, and resources expended during the year (and for company charities only, an income and expenditure account, except where the SoFA incorporates the income and expenditure account). These accounts are required, in accountancy terms, to show a ‘true and fair view’.

Bevan & Buckland’s accountancy team have broad experience working with this type of accounts and will produce accounts that not only comply with all legal requirements but also provide a detailed and insightful overview of the charity’s performance. We are always available to meet with you to discuss the accounts in more depth.

Very responsive and helpful with queries at a very difficult time for the organisation. Provision of training to assist with sage line 50

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