Every year changes are required in the disclosure or format of accruals accounts in order to meet new regulations or to reflect changes in emphasis or best practice. However, as the full impact of the FRS 102 Charity SORP is felt for the first time, this reporting season has seen more changes than usual. For some of our own clients this has required minor changes, for others quite significant ones.
Contrary to the views of some church treasurers and trustees, for most churches the receipts and payments basis of accounting is perfectly acceptable and may save you a lot of stress and time. Here’s why…
However, in making that choice you also need to be aware that:
Is it allowed for my church?
If your church is constituted as a company or has annual income in excess of £250,000, then you are not allowed to use the receipts and payments basis and can only use the accruals basis making sure that you adhere to all the rules set out in the FRS102 Charity SORP.
In conclusion we would stress that:
All in all, if you can make use of the receipts and payments basis then it is well worth exploring.
Read more...
What you can and can't do with your charities money
Church finance - it's better as a team sport!
Briefing papers
Accounting packages for churches and small charities
Making sense of fund accounting
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blogs by the Stewardship team and selected guest writers.
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