You must prepare accruals accounts and have them checked.
Accruals accounts include details of:
- how your charity gets its money
- how your charity spends money
- money in your charity’s bank account
- assets (things your charity owns or money it is owed)
- liabilities (money your charity owes)
- other important information, such as related party transactions
You can choose to describe your charity’s income and expenditure using either:
- categories that you’re free to decide (known as ‘natural categories’), for example donations, wages, rent
- activity categories as listed in the statement of recommended practice (SORP)
You can download templates for preparing accruals accounts.
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 audit.
If you use an independent examiner they must be a member of one of the following:
- Institute of Chartered Accountants in England and Wales
- Institute of Chartered Accountants of Scotland
- Institute of Chartered Accountants in Ireland
- Association of Chartered Certified Accountants
- Association of Authorised Public Accountants
- Association of Accounting Technicians
- Association of International Accountants
- Chartered Institute of Management Accountants
- Institute of Chartered Secretaries and Administrators
- Chartered Institute of Public Finance and Accountancy
- Association of Charity Independent Examiners
- Institute of Financial Accountants
- Certified Public Accountants Association
Read guidance on independent examination of accounts.
Find an auditor using the register of statutory auditors.
Your answers
- 2. How much money does your charity make each year?
- Over £250,000 to £500,000
- Change 2. How much money does your charity make each year?
- 3. Does your charity own more than £3.26 million in assets?
- No
- Change 3. Does your charity own more than £3.26 million in assets?