A brief introduction to understanding charity accounts

By Law, charities need to produce clear and accurate sets of annual accounts, which is the responsibility of the Trustees. The Scottish Government produced accounting regulations that set out how charity accounts must be prepared and these are monitored by The Scottish Charities Regulator (OSCR). Charity accounts can be more onerous than those prepared by businesses, this is to ensure that charities remain transparent and maintain public confidence.

However, charity accounts, for some, can be a bit of mystery – what will a good set of accounts contain? And what makes charity accounts different?

We have prepared some helpful factsheets as a starting point to preparing your charity accounts.

• Initial Steps to Preparing Accounts
• Charity Financial Statements

Mark Gallacher, Head of EQ Charities, commented:

” A charity’s accounts provide its trustees with an opportunity to provide important information to both existing and potential beneficiaries. It also demonstrates the good work they do to donors, in a clear and concise manner. It is vital, therefore, that the basic accounting information is both accurate and easy to read. At EQ, we work closely with our clients to help them meet their specific objectives.”

If you would like any advice on setting up and/or preparing your charities accounts, please contact a member of our EQ Charities team at charities@eqaccountants.co.uk or contact one of our offices.