This service is tailored for UK not‑for‑profit organisations – Charities, Community Interest Companies (CICs), membership‑based societies, sports clubs, residents’ associations, religious institutions, and similar entities. Non‑profit accounting differs significantly from commercial accounting – it requires handling restricted vs. unrestricted funds, donation recognition, grant utilisation compliance, and additional reporting to the Charity Commission. With extensive experience in the non‑profit sector, we provide professional, compliant, and cost‑effective accounting services, ensuring full financial transparency without wasting donor funds.
Restricted and Unrestricted Fund Accounting – We help you establish a clear fund accounting system, strictly distinguishing restricted funds (where donors or grant‑makers have specified a particular use) from unrestricted funds (which the board may allocate according to the charity’s mission). We track the utilisation of each restricted fund monthly to ensure expenditures match donor intentions, and generate fund utilisation reports for easy reporting back to funders.
Donation and Grant Income Recognition – We accurately recognise and classify all income streams in accordance with UK GAAP (FRS 102 Section 1A) and the Charity Commission’s SORP (Statement of Recommended Practice). This includes: donation income (cash, gifts in kind, legacies), grant income (government, foundation, corporate sponsorship), fundraising event income, membership fees, and trading income (e.g. charity shop sales). We apply appropriate timing and measurement for each type to ensure a true and fair view.
Monthly Bookkeeping and Transaction Recording – We process all financial transactions monthly, including: synchronising and reconciling bank accounts, PayPal donation accounts, and credit cards; allocating expenditure by project/activity/department; complete payroll and PAYE processing (including auto‑enrolment) for any paid staff; reviewing and recording volunteer expense claims and travel costs. All accounts are maintained to the standards required by the Charity Commission and HMRC.
Annual Statutory Accounts and Charity Commission Reporting – At year‑end, we prepare annual accounts under SORP FRS 102, including the Trustees’ Annual Report (financial sections), Statement of Financial Activities, Balance Sheet, and Cash Flow Statement. For registered charities, we file the Annual Return with the Charity Commission along with the statutory accounts. For CICs, we assist in preparing and filing the CIC annual report to comply with the CIC Regulator’s community interest test and reporting requirements. All filings are completed before statutory deadlines.
Grant Compliance and Specific Reporting – If your organisation receives specific grants (e.g. National Lottery, local authority, or trust funds), we set up dedicated cost accounting, prepare financial progress reports and final expenditure reports as required by the grant terms. We help ensure all claimed expenditures are eligible, reducing the risk of grant claw‑back.
HMRC Gift Aid Tax Optimisation – We help your charity maximise Gift Aid, ensuring all eligible personal donations are claimed to receive an additional 25% tax rebate. We assist in maintaining donor declaration records and submitting Gift Aid claims to HMRC quarterly, with full record‑keeping for audit purposes.