If you are a small charity or not-for-profit organisation, the records you must keep, and the legal returns that you must make are usually straightforward. But there are strict guidelines that volunteers or non-professional people must abide by.
At Clear Cut Accounts we realise that most charities and associations are run by a long line of volunteers or employees, many only fulfilling the role for a short period. With multiple handovers and personnel, records can become confused, as can the exact returns and processes that must be followed.
By providing an easy to use spreadsheet, and a set of full written instructions, record keeping can be handed over in the future with no worry or concern. We also give a certain amount of discounted services to local charities. For larger charities, software packages can be the answer to making sure that consistent records are kept.
Depending on the size of your charity, the accounts can vary – from a simple set of Income and Expenditure figures, to full Accrual based accounts. Here at Clear Cut Accounts we can make sure that you have the correct accounts in place for your size of charity – and don’t do more work that you have to!
What Services Do We Offer?
- We can provide a signed off Independent Financial Review, as per the Charity Commission guidelines. We cannot do this if we are your accountant and complete your records on an ongoing basis.
- We can create a Statement of Financial Position and an Income & Expenditure Account from your current records, so that you can submit returns to the Charity Commission / the HMRC Companies House if your charity is also a company.
- We can review your accounts, and redesign them to give you optimum information with only minimum inputting. Depending on your preference, we can provide paper schedules, spreadsheets or easy-to-use cloud accounting software, which will be tailor-made for the returns and accounts you need to have. We will also provide full instructions on keeping your accounts up to date – that can be handed over to new officers as the role changes hands.
Whichever option you choose, we will explain what your figures mean, what you can do to improve funds, and even offer advice on how to grow and develop the charity in the future.
Our rates are shown on the What We Charge page.
Charities: Key Questions Answered
1. What Accounting Do Charities Need to Complete?
All charities must prepare a Trustees’ Annual Report and a set of annual accounts and make them available on request. You must send the Charity Commission a copy of these documents depending on your income:
- Less than £10,000 per annum – must submit an Annual Update Part A, which includes changes to the details / officers of the charity, plus Income / Expenditure figures.
- Between £10,000 – £25,000 per annum – as above plus a Trustee’s Annual Report and set of accounts.
- Between £25,000 – £500,000 per annum – as above plus a Reporting Serious Incidents Form.
- Between £500,000 – £1m per annum – as above plus an Annual Update Part B.
- Over £1m per annum – as above plus an Annual Update Parts C.
2. Do We Need Our Accounts Audited?
Charities with income under £25,000 per annum are not required to have their accounts independently examined or audited.
Audits are usually only required if the annual income is over £500,000. If income is between £25,000 – £500,000 normally only an Independent Financial Review would be required instead of an audit.
Please contact us for more details.