Do I need to prepare my accounts?
All charities ( whether they are registered with the commission or not)should prepare annual accounts and should be made available when requested.
The way you prepare your accounts depends on the type of your charity and also the size of your charity.
For example if your charity is also a company and it earns upto £25 000 per year you should prepare annual accrual accounts.
The accrual accounts include information like
- How did your charity gets its money
- How your charity gets its money
- Money in your charity bank account
- Assets
- Liabilities ‘
- Any other information such as related party transaction
Will I have to get my accounts audited?
You will have to get your accounts examined independently either by an independent examiner or by an auditor if your charity is also a company and earns over £25 000 to £50 000.
You can choose how you want to get it examined,either by an independent examiner ( which is less thorough) or by the auditor.However, if your governing document states that your accounts need to be audited then you do require an auditor.
Look at this table below which summarizes the accounting requirements according to the type and size of the charity.
If your charity is a Company
A charitable company will have to be limited by guarantee rather than shares. Your charity is considered a company if it is registered with the companies house.
If your charity is also a company, what will be your accounting liabilities with different incomes:
| Income | Should I prepare Annual accounts ? | Type of annual account | Do I need to have them checked by an independent examiner or auditor | Do I need to submit an annual return? |
| Upto £25 000 | yes | Accruals account | No | Income under£ 10 000 -you only need to submit income and spending(between £10 000-£25 000)-you will only have to answer questions about your charity the annual return |
| £25 000 to £250 000 | Yes | Accruals account | Yes | Yes and submit additional documents as well |
| £250 000 to £500 000 | Yes | Accruals account | Yes.If the assets belonging to the charity is more than £3.26 million then you need to have an auditor. | Yes and submit additional documents as well |
| £500 000 to 1 million | Yes | Accruals account | Yes.If the assets belonging to the charity is more than £3.26 million then you need to have an auditor. | Yes and submit additional documents as wellFor details click here |
| Over 1 million | Yes | Accruals account | Audit required | Yes and submit additional documents as well |
You must submit your annual return within 10 months of the end of the financial year.
If your charity is not a company
If your charity is not a company and the income is below £ 25 000 you can prepare either receipts and payments or accrual accounts.
Between £25000 to £ 250 000 you still have the option in preparing your accounts but have to get them checked.
Above £250 000 you have to prepare accrual accounts and also have them checked.
If you are looking for a charity accountant, accountant in croydon,please don’t hesitate to call Taxaccolega and our team of accountants will be happy to help you,
Source:https://www.gov.uk/prepare-charitys-annual-accounts/y/no/over-250-000-to-500-000/no