For small UK charities, hiring a specialised accountant is an important step in ensuring the financial success and compliance of your organisation. A specialised accountant with experience working with third sector organisations, such as David Howard, can provide invaluable advice and support to help you manage your finances more effectively and efficiently.
Our team of Chartered Accountants have broad expertise in all financial matters relating to charitable accounts, and are qualified to carry out financial analyses, maintain accounts, and advise you on tax liabilities. With our help, you can ensure that your charity is running as smoothly as possible while maximising its potential, and meet the statutory filing duties stipulated by the Charities Commission (CC).
Direct Government Funding For The Third Sector Has Decreased In Recent Years.
Charities in the UK have long relied on government funding to carry out their work. However, in recent years, direct government funding has decreased. This means that charities must look to other sources to make up a larger proportion of their income, such as private donations from individuals, community groups, businesses, and private trusts – as well as trading income. Local authority service contracts are another option for charities to sustain themselves financially. These diverse income streams frequently come with more reporting and taxation obligations than traditional charitable donations or direct government funding. As a result, charities must approach fundraising and bid management more strategically, with legal compliance and sustainability in mind.
Changes To SORP In 2023
Accounting standards and SORP (Statement of Recommended Practice) in the UK are set to change in 2023. The new SORP will require charities to provide greater transparency on how they manage their funds and make use of their reserves and assets. The changes will place an even greater emphasis on the role of the charity accountant in ensuring legal compliance and providing transparency on income sources and uses. A specialist charity accountant can help your charity prepare for these changes, making sure you are fully compliant, and help implement control systems that ensure transparency.
Specialist Advice To Help You Navigate A Challenging Landscape
An experienced charity accountant will have additional technical expertise and Third Sector knowledge that can help your charity achieve its financial objectives. This includes expertise in accounting software, tax planning, and financial benchmarking. This additional expertise can help your charity make better financial decisions and maximise the impact of donations and funds.
Your accountant will also be able to provide general advice and support in non-financial areas relating to fundraising and best practice. They may, for example, be able to review the charity's performance and help with the charity's long-term planning strategy. This unique viewpoint can help your charity identify how financial objectives can support your wider charitable objectives, and how to maximise your impact on the community you help and serve.
Next Steps
Working with an experienced firm of Chartered Accountants, such as David Howard, can help ensure compliance with charitable legislation, and save time and money for your managers, trustees, and volunteers. To find out more about our services and how we can help, please call us today on 020 8629 1530.
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