Noticeboard

Have you got news? Share it here!

APPLY FOR GRANTS

individuals & organisations >

DOCUMENTS

download pdf resources >

GET IN TOUCH

we're happy to help >

 Committed to Excellence logo EVOC is a Investor in People

Annual Accounts

« Back to Resources

Annual Accounts are essentially a report prepared either by your Treasurer or appointed accountant at the end of your group’s financial year, drawing together and analyzing your group’s financial activity over the last 12 months.

Your group’s Annual Accounts will be presented to your members for approval at the Annual General Meeting, and they are important because they:-

  • show members that the committee or board (or Trustees) are managing the organisation’s affairs in a proper manner
  • show funders that their grants are being spent on the purposes for which they were given
  • show prospective funders how the group manages its finances (and whether or not it is likely to manage any prospective grants prudently)
  • show donors how their donations are being used and that they help further the aims of the organisation
  • foster public confidence in the group and hence encourage ongoing support
  • if your group has charitable status, your Annual Accounts demonstrate that
    • the Trustees are meeting their legal duties and the charity is being accountable and compliant
    • the charity is being managed in a fit and proper manner, with income being used to further the group’s charitable purposes

Annual Accounts vary in format from the simplest Income and Expenditure sheets to the more complex Accrued Accounts.

The type of Annual Accounts prepared by your group will depend on:-

  • the legal form or structure of your group
  • your group’s annual income in the period covered
  • whether or not your group is a registered charity
  • funder’s conditions
  • your group’s own constitution or governing document

These things will also determine whether or not you have a legal requirement to submit your Annual Accounts to a regulatory body.

For Unincorporated Associations handling relatively small sums of money over the year, the Annual Accounts will usually be Income and Expenditure balance sheets compiled by the Treasurer.

For Unincorporated Associations with larger incomes or organisations/groups which are Incorporated or for groups with charitable status, it is advisable to appoint a suitably qualified accountant who can prepare the Annual Accounts in the required format according to correct accounting procedures.  

Retaining your Accounts

The Charities and Trustee Investment (Scotland) Act 2005 requires a charity to retain its accounting records for at least six years.  Organisations should also be aware that they may be required to keep information for longer for funders or if they are legislated by other bodies.   For HMRC purposes all records have to be kept for 6 years.

Contact the Community Toolkit Editor

Conditions of Use
Last Updated 14/10/2011 15:16

_uacct = “UA-829849-2″;urchinTracker();

Contact the Community Toolkit Editor

Conditions of Use
Last Updated 14/10/2011 15:16

_uacct = “UA-829849-2″;urchinTracker();

« Back to Resources