Accounting can be a very difficult subject to understand completely; there are a variety of aspects that have to be covered for any business to succeed. all income has to be reported correctly meaning accountancy is even more crucial for a charity. Here’s why if you have a bad accountant, it could be terrible for your charity.
Why do I need charity accounting?
There are a huge number of reasons charities will find themselves in need of a good accountant. The charity commission checks all bookkeeping, so it needs to be at an excellent standard.
What is bookkeeping?
Many ask themselves, what is bookkeeping? Well, bookkeeping is the act of keeping all of your incomes and expenditures kept track of. Due to the Charities Act, you need to be able to provide information and explanation for all transactions made by the charity and disclose your financial position at all times. The charity commission needs to have all of this information readily available. You must send this to the charity commission yearly as part of the charity commission annual return.
What is planning and budgeting?
Charity accounting can also help with financial planning and budgeting. It’s important to make sure you’re not overspending and have enough money to carry out day-to-day business, with a strong plan moving ahead. This is true for any business but rings true also for charities. Charity accounting can help to create a financial strategy, as well as effectively forecast your charity’s cash flow.
Why might I need to switch accountants?
While it is obviously important to have a good and effective accountant, as they handle many important things like bookkeeping and your charity commission annual return. Below are some common problems people face with charity accountants;
- Their accounting methods are outdated
- They don’t understand what your charity does
- They are not available when you need them
- Your accountant isn’t planning for the future
All of these issues are potentially common in charity accounting and you need to make sure that if you’re encountering these issues, they’re quickly dealt with. But, how?
How we can help
Here at Carrington Blake, we ensure the absolute best for each and every one of our clients, whether it be bookkeeping, financial planning, or anything else. We avoid each and every common issue that typical accountants have and with over 10 years of accountancy experience we strive to provide the best service for each of our valued clients.