Helping with charity accounts

the Charities Statement of Recommended Practice (the SORP). Its ‘profit and loss account’ is the SOFA – Statement of Financial Activity.

There are also restricted, unrestricted and designated funds or free reserves, the reserves policy and the Trustees’ Report.

The SORP was updated in 2015 resulting in wholesale changes in charities’ financial statements last year.

The Charity Commission website includes information on the type of accounts and the external scrutiny required, depending on the size and constitution of the charity.

Leave the technical detail to the accountants.

A good charity accountant/ auditor should help you navigate the accounts, allowing you to concentrate on over-seeing the organisation.

All the very best with your role.

The sector relies so much on volunteers such as you in what are very challenging times for many charities.