Organisations which are typically recognized as charities
Churches or associations of churches such as the Anglican church. Educational organizations, hospitals, medical research organizations or organizations which provide support for universities. In the United Kingdom such organizations are subject to various laws like the Charities Act of 2011, the Charities (Protection and Social Investment) Act of 2016, the Companies Act 2006, Trustees Acts, Corporation Tax Act 2010, income tax Act and Taxation of Chargeable Gains Act.
As can be seen above, Charities and Non-Profit is a specialist area which requires an understanding of the industry. The Charities Commission is the main body which regulates this sector, this body requires that filing of accounts applies to all charities. Furthermore, such reports must be filed online.
At Accountant on Duty, we have many chartered accountants who are savvy with their IT and understand exactly with forms must be submitted, making things easier for our clients who are charity organisations.
An overview of Non-profit and Charities
Many non-profit organisations are seeking professional accounting packages for charities. The point of departure is that with a non-profit organization none of the net profit from any donations, membership fees or business activities will benefit any individual. There are many different types of non-profit organisations. Those non-profit organisations which work to benefit the public tend to the type that most people are familiar with and are known as charities.
Another type of non-profit organization are homeowner associations or clubs as they serve members’ collective interests as opposed to that of the larger public in general.
Furthermore, charities can be spilt into two types generally speaking: public charities and private foundations. The main difference between these organizations is how they derive their funds. Private groups are typically controlled by a select group who draw their funds from one significant source in particular. Public Charites tend to rely on public support and depend on numerous funding sources.
Professional Accounting Packages for Charities
Figuring out how to apply the relevant accounting requirements depends on whether your company is a charity or an incorporated organization, the income it has earned in the current financial year, the value of the assets your charity holds, if your business is required to be registered as a charity or non-profit organization.
It is then important to determine the types of accounts which must be prepared based on relevant legislation, what information trustees need in the financial reports, if the accounts need to be verified by a third party or need to be audited and if any information must be sent to the charity commission.
In submitting information to the commission, all Charites must prepare a book of accounts and make them available on request. Charities which are registered must prepare an annual report which is readily available on request.
Leading Chartered Accountants Helping Charity
At Accountant on Duty, as leading Chartered accountants in London, we pride ourselves on being able to help small businesses such as charities who do work for the greater good. Our chartered accountants are well versed with the latest trends in the industry and have a thorough understanding of how to treat the different assets, liabilities, expenses, and income related to a charitable organization.
Our accountants also have a solid background in taxation and understand complexities that may arise with issue such as Capital Gains tax, VAT or general income tax which may be subject to exceptions. Also, some small start-up charities may be uncertain as to how to treat certain donations received.
Accountant on duty is a firm of chartered accountants who offer amongst other accounting services: payroll solutions, bookkeeping, financial accounting, management accounting and accounting software services. Accountant on Duty aims to serve small businesses, business start-ups, Charities, and non-for-profit organizations amongst other businesses.
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