You can prepare either receipts and payments or accruals accounts.
You can choose which type of accounts you prepare.
Receipts and payments accounts
Receipts and payments accounting is a summary of all the money you received and paid out in the year.
You need to list assets (things your charity owns or money it is owed) and liabilities (money your charity owes to others).
Download templates for preparing receipts and payments accounts.
Charitable incorporated organisations (CIOs)
If you’re preparing receipts and payments accounts for a CIO, you must also include details of any loans:
- someone else has agreed to pay if the CIO can’t (‘under guarantee’)
- secured against the CIO’s assets, for example property
Accruals accounts
Accruals accounts include details of:
- how your charity gets its money
- how your charity spends money
- money in your charity’s bank account
- assets
- liabilities
- 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.
You don’t need to have your accounts examined or audited unless your charity’s governing document or the Charity Commission asks you to.
Your answers
- 2. How much money does your charity make each year?
- Up to £25,000
- Change 2. How much money does your charity make each year?