Specialist Charity Accountants
Here at Hartley Fowler, we recognise that the accounting needs of charities and not-for-profit (NFP) organisations are distinctively different from those of businesses. We have a dedicated team of charity accountants in Brighton who understand the Charity Commission’s regulations, as well as the challenges your organisation faces.
Trusted Charity Accounting Services
We are pleased to offer a range of charity accounting services, including:
Recent times have seen the introduction of a compliance regulator, leading to new rules on internal controls, asset management and taxation. Our team of specialist charity accountants understand the sector very well. We know how charities and NFPs work and we see the ‘bigger picture’ when it comes to offering the most appropriate, professional advice.
What Accounting Practices Are Mandatory for Charities in the UK?
Every charitable organisation in the UK is obligated to maintain accurate accounting records. These records should include:
Bank statements A comprehensive cash book detailing daily income and expenditure Invoices, receipts, and documentation related to grants, covering all sources of income and expenditure.
Why Do Charities Need Specialist Accountants?
Accounting for charities differs from that of a commercial business. To ensure compliance, they require the knowledge and expertise of a specialist charity accountant. With vast experience working with not-for-profit organisations and charities such as MIND, at Hartley Fowler, we can relieve you of the stress and burden associated with regulatory requirements. To find out more, please get in touch with our team.
Additional benefits of enlisting the expertise of a specialist charity accountant include:
- A charity accountant will not only understand the sector, but will take the time to truly get to know your organisation.
- Charities must comply with both local government regulations as well as internal policies when managing finances. A not-for-profit accountant can ensure compliance with both sets of regulations, helping to streamline processes.
- By ensuring that accounts reflect donations made and expenses incurred, charity accounting services can help to promote accuracy, reducing discrepancies and enhancing the reliability of data.
Do Charities Pay VAT?
Navigating VAT for charities can be challenging. As specialist charity accountants, we can use our expertise to provide guidance on charity tax exemptions and relief, as well as assist you in structuring your activities in the most tax-efficient manner.
We can also provide effective tax planning, implementing robust systems and procedures for seamless VAT management. By providing you with a comprehensive understanding of your responsibilities, we can assist you in avoiding costly mistakes and penalties from HMRC, whilst ensuring opportunities are maximised when possible.
Reliable Charity Accounting Services
As a charity or NFP, funding is paramount. We are here to help your organisation maintain and demonstrate strong financial controls, as well as robust management of assets and taxation issues. This essential work will be the foundation that enables you to direct and maximise the talents of your staff to raise much-needed resources for your cause.
Next Steps: make an appointment with our specialist charity accountants
To discuss our charity accounting services in Brighton, please Contact us.Alternatively, arrange a free initial consultation with one of our specialist accountants for charities and NFPs.
FAQs
A charity accountant specialises in the unique financial and regulatory requirements of charitable organisations. They are able to navigate complex charity laws, ensuring compliance and effective financial management.
Nonprofit accounting refers to the way in which the financial transactions of nonprofit organisations are planned for, recorded and reported. It includes reviewing accounts, understanding the purpose behind decisions, preparing reports, preparing for audits and more.
In short, charities deal with other people’s money, given voluntarily to provide support to others. On the other hand, businesses build income for themselves. Unlike companies, charities are not run to make a profit, therefore accounting processes are slightly different.
A charity with an income below £25,000 is not required to undergo a statutory audit. However, they may still need to have an independent examination of their accounts. Small charities with an income between £25,000 and £1 million may be subject to a simplified or partial audit or an independent examination, depending on their structure.
A type of accounting used by charities, fund accounting focuses on accountability. Creating accounts using the principles of fund accounting makes it possible for organisations to ensure money is being spent on the purpose it was given.
Fund accounting must match the source of funds with their acceptable, intended or legally permitted uses. This differs from business accounting, with businesses being free to use their profits in any way they choose to meet objectives.
Charities in the UK are required to adhere to specific accounting standards to ensure transparency and accountability. They must prepare annual financial statements that include an income expenditure account, balance sheet and a cash flow statement. Charities may also need to produce additional reports based on their size and complexity.
Yes, QuickBooks can help you easily manage your nonprofit’s finances. From keeping track of revenue and expenses to maintaining donor records and program specific budgets, QuickBooks is a suitable tool for organisations of a range of types and sizes. Find out more about our cloud based accounting services here.
Charities that meet the following criteria must carry out an audit:
1. Charities with an income of £25,0000 or more must undergo an independent examination.
2. Charities with an income of £1,000,000 or more must have an external audit.
3. Charities with assets above £3,260,000 and an income exceeding £250,000 must have an external audit.