Running a charity isn't easy. Whether it's people or animals that rely on you, they are the most important part of your organisation. Everything else, including finances comes second, but you still have to make sure they're accurate, reports are delivered on time, and you're raising the funds you need to continue supporting those that need you.
Financial Reports
No matter how big or small your charity is, you still have to produce an accurate financial report each year. Not only do they have to be accurate, but HMRC can ask to see them at any time, so they must be readily available.
If your charity has a gross income of more than £250,000 each year, not only do you need to produce a financial report containing details of money received, paid and assets and liabilities, but you also need to produce a balance sheet, statement of financial activities and explanatory notes.
With so much already going on it your charity that requires your attention, Trustees you depend on to generate income for your business, and no experience in accounting, completing financial reports accurately and on time is incredibly difficult. That's we highly recommend working with an accountant because your time will be freed up so you can invest it in other areas of your charity, and you can be certain that all reports will be completed accurately and on time.
Reclaims
There are two types of reclaims that not only impact, but benefit your charity; Gift Aid Reclaims and VAT Reclaims.
Claiming Gift Aid means your charity will receive 25% more income from a donation which can have a huge impact on the support you're able to give. However, there are certain rules and processes that can be tricky to understand when claiming Gift Aid, so to make sure you're claiming the right amount, we recommend working with an accountant.
Your charity can also claim VAT relief on certain goods which means your outgoings might not be as high. However, knowing what these goods are and how to go about claiming VAT relief isn't always easy. Choosing to work with an accountant means you'll always be able to reclaim on the goods you're entitled to, again helping to boost the amount of money you have available to help those you support.
Other Reasons
There are plenty of other reasons why charities should work with an accountant they trust. It saves time, ensures accuracy, and can help you with funding allowing you to offer more support.
From financial advice to examinations to reports and reclaims, here at GMP, our team can help with all aspects of your charity's finances. We want your charity to thrive.