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Opinions please - Charity Accounts reverting to Receipts and Payment Accounts

marplemadmarplemad Just JoinedRegistered Posts: 5
A small, local charity, which used to prepare Receipts and Payment accounts, has completed Accrual accounts over the past few years. This was initially implemented due to Charity Commission guidelines at the time of receipt of a large one-off grant. The accountant/independent examiner, who only charges a very low fee for his services, has prepared Accrual Accounts since then. The accountant/independent examiner is now retiring and the charity can ill afford the substantial increase in accounting costs it faces. The charity now wishes to revert to Receipt and Payment accounts in the hope that they will be able to use the services of a local bookkeeper, who will act as independent examiner on a volunteer basis.
Under Charity Commission rules, the charity has to prepare Receipt and Payment accounts - Accrual accounts are not required.
Are there any concerns with reverting to Accrual accounts that the charity should consider before making this decision.

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,431
    Most bookkeepers will be aware of accrual accounting and unless there are a number of complex entries, which I wouldn't expect with a small charity, the time spent on doing accounts shouldn't be that different. A few adjustments at year end?
    BeccaLouJ9
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