Understanding the Broad Range of Charity Accounting Services: Going Beyond Mandatory Accounts Submissions

Managing and running a charity, social enterprise, or not-for-profit organisation can be rewarding and vocational, but the rigours of regulatory compliance, accurate accounting, transparent reporting and solid financial management can be complex, both for smaller localised charities and for established nationwide or global organisations.

For many charities and their trustees, our charity accounting services are vital to managing their obligations, from compliance with mandatory reporting and declarations to optimising the use of funds to maximise the benefits to the organisation and the impact it makes.

We’ve compiled a short guide to clarify the depth of expertise we offer within the James Todd & Co team, to help prospective new charities or clients understand why a specialist, experienced accounting partner can add real value beyond the basics of filing accounts and Charity Commission reports.

Financial Management and Detailed Planning for Non-Profit Organisations

We’ll start by looking at ongoing support services that can have an incredibly positive impact, particularly where trustees and management are experts in areas outside of finance or have limited time and capacity and are concerned about their ability to make confident, fully informed financial decisions in the charity’s interests.

Depending on the organisation and requirements, that could involve:

• Preparing and presenting management accounts, often monthly, which provide trustees with detailed, accurate, and timely information they can use to inform their approaches and remain up to date with the charity’s financial performance.
• Creating summaries that set out the key information extracted from management accounts, such as mapping out performance against KPIs, or highlighting areas within the charity that may require extra resources, attention or efficiency.
• Tracking the use and allocation of restricted or ring-fenced incomes or grants, providing certainty that these funds are kept separate from general operating costs and are only utilised as intended.
• Pulling together budgets, forecasts and cash flow projections, reporting on actual income and spending against these benchmarks, and providing independent advice when targets or expected outcomes are unmet.

Working with a charity sector accountancy team in this way ensures that shortfalls are never unanticipated or unnoticed until year-end. It also allows trustees to be more effective and proactive, with reliable information available when it matters.

Charity Accounting and Auditing Services

Preparing year-end charitable accounts is one of the most requested services, but we can also step in when non-profit organisations, community interest companies, or social enterprises need to perform independent examinations of their accounts or are required to undertake a full audit to verify that their accounts are accurate, fair, and present a true picture of the charity’s financial position.

Alongside preparing and auditing or examining accounts and sharing reporting outcomes and opinions with charity boards, we can also help with other statutory tasks such as filing annual returns, preparing calculations for corporation tax payments, and advising on the correct application of tax reliefs like Gift Aid which may comprise a significant amount of a charity’s income.

From a tax perspective, charities should always strive to operate in the most tax-efficient way possible to utilise donations, sponsorships, and fundraising wisely. Where there are reliefs, allowances, or exemptions available, our accountancy team can, of course, ensure these are fully applied.

Bookkeeping and Day-to-Day Financial Administration Support for Charitable Organisations

General bookkeeping is often perceived as a straightforward prospect, but for many charities, exposure to manual or software-related errors or backlogs of administration can make it incredibly hard for trustees to have real-time oversight or make decisions without knowing exactly how the organisation is performing in the present.

James Todd & Co can provide outsourced bookkeeping and comprehensive accounting clean-up services to bring outdated accounts up to date. 

We also offer ongoing assistance, from setting up cloud-based, secure, and compliant software to advising on the best ways to record, report, and calculate VAT returns where applicable.

Charity Formation Assistance From Our Accountancy Team

Setting up a charity may appear straightforward, but for many organisations, professional advice at this stage can be important, with independent guidance on charitable structures, how the options might impact the organisation’s ongoing work, and the rules and regulations that apply to different types of non-profit entities.

Independent Advice and Guidance on Charity Governance and Trustee Responsibilities

Governance is a vital aspect of charity management. The goal is for every charity to be well-governed with clear structures, processes, strategies, and responsibilities communicated between trustees and other charity officials or representatives.

As an accounting team with years of experience supporting charities of all sizes, our role may be to advise trustees to ensure they fully grasp their roles and responsibilities, spot inefficiencies or vulnerabilities, especially within financial and accounting policies, and create robust internal controls.

Effective governance is never an area to overlook. It ensures trustees are meeting their duties in making the best use of the charity’s resources, demonstrate excellent leadership, and have no doubts or reservations about whether the organisation has adequate supervision and monitoring protocols in place to identify mistakes if they happen – and can then arrive at swift resolutions.

The Benefits of Accounting and Compliance Assistance From Experienced Charity Accountants

As we’ve outlined, numerous finance functions and services apply to charities, and working with an experienced, accredited, and accomplished accountancy team with specialised charity accounting professionals can provide compelling benefits.

Rather than leaving anything to chance or relying on accounting expertise solely when it comes time to prepare year-end reporting, charities can tap into expert knowledge, form ongoing relationships with finance professionals who know and understand their organisations, and set up processes that represent best practice in terms of reporting, accounting, record-keeping, risk mitigation and compliance with all the applicable regulations, legislation and charity rules.

Please get in touch with James Todd & Co Accountants for more information about any of the services we’ve mentioned here or to arrange a convenient time to consult with our advisers about how best we can support your charitable organisation. You’ll also find greater details about our accounting services and experience by visiting our online resources.