THE FIRST IS – You must prepare accruals accounts and have them checked.
Accruals accounts include details of:
- how your charity gets its money/funding
- how your charity spends money and what projects.
- money in all your charity’s bank accounts need to be reconciled
- assets (things your charity owns or money it is owed)
- liabilities (money your charity owes)
- other important information, such as related party transactions with the trustees
You can choose to describe your charity’s income and expenditure using either:
- natural categories that you’re free to decide, eg donations, wages and rent
- activity categories, which are listed in the statement of recommended practice (SORP)
Get your accounts checked
You must have your accounts independently examined or audited. You can choose which you do unless your governing document specifies an auditor.
Limited company accounts
You must also prepare annual limited company accounts for HM Revenue and Customs (HMRC) and Companies House.