At the end of each financial year your organisation will need to produce summary financial statements which will have two parts.
This tells the story of what has been incoming and outgoing in the year by presenting the totals under different categories. This part may be titled the Receipts and Payments account, the Statement of Financial Activities or the Profit and Loss report.
This gives a snapshot of what the organisation owned, owed to others and was owed by others at the last day of the financial year. This part may be titled the Balance Sheet or the Statement of Assets and Liabilities.
The format of these reports will vary with the type of organisation. If the organisation is a company the accounts must be prepared on an accruals basis. If the organisation is a Community Interest Company (CIC) a CIC34 report must accompany the accounts. Also Corporation Tax must be calculated and paid on any profit in the year. For guidance about how to prepare your accounts see the Charity Commission website or discuss with a community accountant at WYCAS.
Who is interested in your organisation’s accounts?
- Management committee
- Regulators (eg. the Charity Commission, Companies House)
- HMRC (tax inspectors)
Help with year end accounts and more
A range of services provided by WYCAS (West Yorkshire Community Accounting Service) are available to help your organisation with its year end accounts including a course on Understanding year end accounts. To find out more contact WYCAS.
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