One of the things that can make or break a charity is how it manages its finances. All money coming in and going out needs to be carefully accounted for using the appropriate processes.
Bookkeeping is often a daunting task with so many areas that could go wrong. Due to the sensitive nature of charity organisations – dealing in the receipt and dissemination of funds – there is very little room for error. You should, therefore, take all measures to ensure the process is as accurate, efficient and secure as possible.
This is why third sector organisations should consider outsourcing their accounting needs to a cloud accounting specialist. In so doing, they will benefit from:
1) Professional Management
Charities face a unique challenge with unintentional errors, given that many staff are volunteers without specific accounts or finance training. By using the services of a certified cloud accounting partner, all the accounting tasks will be managed by professional accountants with years of experience. This doesn’t discount or undermine the work of your volunteers, but it supports them in their role and ensures that mistakes don’t slip through the net.
Our involvement can also assist with setting up robust systems and controls for completeness of income and expenditures are properly authorised and evidenced in a way which doesn’t drain the charity’s valuable resources. Our professional involvement is also useful so the charity to be seen in the best possible light by donees.
2) Time To Focus On Your Mission
By letting professional accountants handle the burdensome but sensitive bookkeeping duties, charity managers have the peace of mind and time to focus on the core mission of their organisation. With accurate and up to date accounts, moreover, charities are in a stronger position to make cash forecasts to plan projects, and to secure funding from grants, trusts, and public sources.
3) Ensure Compliance
Reporting errors are a nightmare for any organisation – and especially so for charities, who have to account carefully for their expenditure and income in order to take advantage of the tax breaks offered to the third sector. Accounting mistakes could lead to time consuming and embarrassing errors, which could leave your charity open to greater tax liabilities, as well as accusations of incompetence.
Doing your charity accounts with the support of a cloud computing partner will ensure nothing of this sort ever happens to you. They will help you fulfil all the required Charity Commission and HMRC reporting and filing obligations (e.g. to qualify for GiftAid payments) and ensure your records are accurate and updated.
The extra internal and external reporting requirements can be costly and with well set up structures and systems reporting can be automated which can again save valuable resources.
Expert Advice And Support For Charities
Our David Howard accounts team have many years’ experience working with small to mid-sized charities and social enterprises across the UK. For a modest fee, we can assist your in-house accounts team and volunteers, ensure your accounting obligations are met, and help you take advantage of any financial and tax incentives available to support your work. To find out more, or to request a quote, please give us a call today.