Charity Accounts

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T.C.
T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
in General accounting discussion
Just a little advice please. Most of my work is for sole proprietors and partnerships, but I have been asked to do the accounts for a new charity. Anything you think I should be considering? The charity is only just registering. Thank you.

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  • pinksponk
    pinksponk Registered Posts: 57 Regular contributor ⭐
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    I know that there are many rules & regulations regarding Charities because I attended one of those free CPD events last year.
    If it were me, I would do some more research.
  • Stan Bown
    Stan Bown Registered Posts: 39 Regular contributor ⭐
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    Charity accounts

    Check out the Charity Commission website as there is lots of advice on charity finance there. Particularly the charities SORP.

    Charities can also be limited companies as well and will have different financial obligations depending on whether they trade or don't trade in a business only indirectly related to their main purpose.

    Stan
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    Thanks, I will check out the Charity Commission website. The charity is only a "rescue chickens" charity, so hopefully will be quite simple. Thanks
  • Stan Bown
    Stan Bown Registered Posts: 39 Regular contributor ⭐
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    Charity accounts

    No problem. A bit more info, in case it helps. (I'm a volunteer treasurer for a community development charity.) They've got very few creditors or debtors and even though they have accrued and pre-paid income and expenses, in the form of grants and rent, they run their books on a cash basis - their accounting periods are based on the length of their funding periods and their financial year. They produce a monthly balance sheet and income and expenditure account/cum variance report. They have an chartered certified accountant who does their annual report based on statutory, charity commission and companies house requirements.

    Regards

    Stan

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