Charity accounting
Trustees of charities are required to produce an annual report, a set of accounts and an annual return to charity commission if gross income is above £25,000
The framework for accounting by charities sets out different requirements for different sizes and types of charity
Accounting and reporting by charities are subject to the statement of recommended practice CHARITIES SORP (FRS 102)
Trustees are required to assess as to what type of accounts to be prepared, what information is needed in the trustees annual report and whether the accounts need an independent examination or audit
The trustees are required to choose an independent examination instead of an audit if your charity’s gross income is more than £25,000, but not more than £1 million, provided that if its gross income is more than £250,000, its gross assets (fixed assets plus current assets) are £3.26 million or less
The trustees of charities with gross incomes of more than £1 million (or more than £250,000 and with gross assets of more than £3.26 million) must arrange for their charity’s accounts to be audited.
Annual report and accounts to the charity commission must be files within 10 months after the financial period end and are subject to accounting as per FRS 102 which involves fund accounting for example accounting for unrestricted funds, restricted funds and endowment funds
We are Central Council of Accounting Bodies (CCAB) qualified Accountants. Let BP Infinity help you out with keeping your charity accounts records and file your charity accounts as per SORP (FRS 102) to the charity commission and companies house
Charity VAT
Charities are not VAT exempt and, much like businesses, must register with HMRC if their taxable supplies are above the registration thresholds
With a variety of complex income streams, VAT management for charities can often be confusing – but our VAT partners give clear and actionable advice, ensuring VAT compliance and maximum recovery of VAT where applicable
Why work with us
Our dedicated charities accounting team is here to help you overcome the challenges faced by the not-for-profit sector
From staying ahead of regulatory changes, complex tax issues, and the ever-present issue of financial sustainability, our experienced team can support your organisation to carry out your essential back office work
Our dedicated accountants provide high quality, meticulous accounting and back office services for far less than the cost of hiring an in-house professional