All charities are required to prepare annual accounts, but not all charities are required to prepare accounts in the same way. Some churches and charities can use the more straightforward receipts and payments basis rather than the accruals basis. This paper explains which charities have that choice and why using the receipts and payments basis might have real benefits.
- What are the the two bases for preparing charity accounts?
- When must charities use the accruals basis for preparing accounts?
- What are the pros & cons for using the receipts and payments basis for preparing accounts?