Charities hold other people’s money and therefore must ensure that their financial records comply with specific charity legislation while satisfying the needs of all stakeholders. Charity companies raise a lot of money. However, when trying to keep financial records up to date, things can go wrong.
Why is it important for charities to do their bookkeeping and annual accounts?
Every charity must prepare a set of accounts annual report. The aim of accounts and reports is to provide a clear picture of your charity’s activities and financial position. The annual report is also an opportunity to describe your work to the public and to funding bodies.
Bookkeeping for charities is essential as they will need to separate their personal accounts and business accounts in order for them to keep up to date financially.
This is important as this can keep records up to date of what people have sent charities around the world and how much they give out globally.
Every charity, even if it is not required to register with the Charity Commission, must keep accounting records (these include cash books, receipts, records of grants and more.)
Charity Commission Advice:
The Charity Commission is now taking action against charities who file their accounts late over successive years.
They advise charities to:
- not waiting until the 10-month deadline; when you have the documents, submit them
- ensure you have a password to access the commission’s online services or ensure that you know who within the charity has the password
- know that submission is the collective responsibility of the entire trustee body, not just the treasurer or secretary for example
What Charities Need to Do?
- Charities need to ensure that they keep detailed financial records that comply with their legislation
- Ensure fundraising is carried out correctly
- Know what type of accounts need to be prepared
- Know what their financial duties and responsibilities are
How Can We Help?
Here at Carrington Blake Accountancy, we offer a wide range of services for charities. Our services range from; bookkeeping, management accounts and reports, charity taxation and VAT, charity gift aid and annual statutory accounts and annual returns.