Prepare a charity's annual accounts

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.

Using an independent examiner

An independent examination is less thorough than an audit.

The examiner must:

• have the ability and experience to conduct the examination
• not have a close relationship with any of the charity’s trustees
• not be involved in the day-to-day running of the charity

Read guidance on independent examination of accounts.

Using an auditor

Find an auditor using the register of statutory auditors.

Your answers

Start again

• 1. Is your charity a company?: Yes
• 1. Is your charity a company?: Change
• 2. How much money does your charitable company make each year?: Over £25,000 to £250,000
• 2. How much money does your charitable company make each year?: Change