Not for profit organisation accounts: Essential accounting and reporting requirements

Not for profit organisation accounts: Essential accounting and reporting requirements in the UK for 2025 are at the core of ensuring transparency, compliance, and donor confidence. Whether your organisation is a registered charity, a community interest company (CIC), or a charitable incorporated organisation (CIO), accurate accounting is not just a legal duty — it is also the foundation of trust with regulators, funders, and the public.

In 2025, UK non-profits face an increasingly complex financial reporting environment. The Charity Commission requires charities to prepare accounts in accordance with the Charity SORP (Statement of Recommended Practice), with different rules depending on income levels and legal structures. At the same time, Companies House filing reforms mean that charitable companies must now meet stricter digital filing and transparency obligations. Trustees who fail to keep proper records or submit accounts on time risk regulatory penalties, reputational damage, and even loss of charitable status.

Yet the requirements are not only about compliance. Clear, well-prepared accounts demonstrate accountability and strengthen a charity’s case when applying for grants, attracting donors, or negotiating with partners. Funders increasingly demand detailed reporting, and without accurate accounts, many non-profits find themselves excluded from vital funding opportunities. For this reason, accounting should be seen not just as an administrative burden, but as a strategic tool that underpins growth and sustainability.

This guide will walk you through the essential aspects of not for profit organisation accounts in the UK. We’ll cover:

• Charity accounting standards UK – the frameworks that charities must follow.
• Trustees’ annual report requirements – what information must be disclosed each year.
• Receipts and payments accounts vs accruals accounts – the two main reporting formats and when each applies.
• Independent examination vs audit – thresholds and obligations based on income and assets.
• Annual returns to the Charity Commission – deadlines and filing processes.
• Gift Aid accounting – how to record and claim tax-effective donations.
• Fraud risks and internal controls – protecting your organisation’s funds and reputation.
• Accounting software for charities – tools that simplify compliance and reporting.
• Filing accounts with Companies House – what charitable companies must now do under the 2025 reforms.

By the end of this article, trustees and managers will have a clear, practical understanding of the accounting landscape. More importantly, you’ll see how professional support can reduce risks and free up time for your mission.

At NGO Finance Hub, we specialise in supporting charities and non-profits with ngo financial management, financial management for NGOs training, and our practical ngo finance course. We empower trustees and finance teams to comply with regulations, manage accounts efficiently, and present financial reports that inspire confidence among donors, regulators, and the communities you serve.

Charity accounting standards UK

Every charity in the UK must prepare its not for profit organisation accounts in line with the charity accounting standards UK, which are designed to ensure transparency, accountability, and consistency across the sector. These standards aren’t just technical rules — they provide the framework that builds donor trust and allows regulators to assess whether organisations are operating responsibly.

1. The Charity SORP and FRS 102

The primary framework is the Charity Statement of Recommended Practice (SORP), which sets out how charities must apply FRS 102 (Financial Reporting Standard applicable in the UK and Republic of Ireland). The SORP explains how income, expenditure, assets, and liabilities should be presented in charity accounts, with a focus on showing how funds are used for charitable purposes.

Smaller charities with income below certain thresholds may qualify for simplified reporting (such as receipts and payments accounts), but medium and larger charities must prepare accruals-based accounts in line with SORP. The aim is to strike a balance between proportional reporting and maintaining accountability to the public.

2. Size thresholds and reporting complexity

The thresholds set by the Charity Commission determine which not for profit organisation accounts standards apply:

• Income below £25,000 – some charities may only need to prepare simpler accounts, but still must keep proper records.
• Income £25,000–£250,000 – may qualify for receipts and payments accounts if not a charitable company.
• Income above £250,000 or incorporated charities – must prepare accruals accounts under SORP.
• Income above £1m or assets over £3.26m – a statutory audit is required.

These thresholds ensure that the level of reporting reflects the size and complexity of the organisation.

3. The importance of compliance

Compliance with charity accounting standards UK is not optional. The Charity Commission has powers to investigate charities that fail to submit accurate accounts, and non-compliance can result in financial penalties, reputational damage, or even removal from the charity register. For trustees, this makes accounting not just a duty but a core governance responsibility.

4. Benefits of applying standards properly

While some trustees may see the SORP as burdensome, it actually strengthens a charity’s credibility. Consistent application of standards allows donors and grant-makers to compare organisations fairly. Clear financial statements also make it easier to demonstrate impact, apply for funding, and attract long-term supporters.

FAQ: What accounting records must not for profit organisations keep in the UK?

All not for profit organisations must keep detailed and accurate records of income, expenditure, assets, and liabilities. This includes receipts, invoices, payroll records, bank statements, and documentation of Gift Aid claims. These records must be kept for at least six years, and they form the foundation for preparing annual accounts.

At NGO Finance Hub, we help organisations navigate the complexity of the Charity SORP and ensure compliance with UK standards. Our ngo financial management support and financial management for NGOs training are tailored to trustees, finance officers, and charity managers who need practical guidance to meet regulatory requirements while focusing on their mission.

Trustees’ annual report requirements

The trustees’ annual report requirements are a central part of charity accounting in the UK. While the financial statements show the numbers, the trustees’ report explains the story behind them — why the charity exists, what it has achieved, and how it has managed its resources. For donors, regulators, and beneficiaries, this report is just as important as the accounts themselves.

1. Legal requirement for UK charities

Every registered charity must prepare a trustees’ annual report each year. The scope of the report depends on the charity’s size and whether it is incorporated, but in all cases, it is a legal obligation. The report must accompany the accounts submitted to the Charity Commission and, for charitable companies, also to Companies House.

2. What must be included in a trustees’ annual report?

The Charity Commission outlines a set of core elements that must appear in the report:

• Charitable objectives – the purposes the charity was established to pursue.
• Activities and achievements – the work carried out during the year and the impact achieved.
• Public benefit statement – demonstrating how the charity’s work benefits the public, a requirement under the Charities Act 2011.
• Financial review – explaining the sources of income, how funds were spent, reserves policy, and financial risks.
• Structure, governance, and management – details of how the charity is run, including trustee appointments, decision-making processes, and risk management.
• Future plans – setting out strategic priorities for the coming year.

For larger charities (income above £500,000), the requirements are more detailed, and trustees must provide additional disclosures, including on fundraising practices and safeguarding.

3. Why the trustees’ report matters

The annual report is not just a box-ticking exercise. It provides transparency, builds donor confidence, and shows regulators that trustees are fulfilling their duties. A strong report can also support funding applications by highlighting achievements and demonstrating robust governance. Poorly prepared reports, on the other hand, can damage credibility and raise red flags with stakeholders.

4. Common pitfalls to avoid

Many smaller charities fall into the trap of producing generic reports with little evidence of impact. Others fail to explain how their reserves policy aligns with their financial position. The Charity Commission expects clear, tailored reporting — not copied templates. Trustees should invest time in preparing a report that reflects their organisation’s real strengths and challenges.

FAQ: What must be included in a trustees’ annual report?

At a minimum, the report must include the charity’s objectives, activities, achievements, public benefit statement, financial review, governance details, and future plans. Larger charities must also provide information on fundraising practices, safeguarding, and other compliance matters.

At NGO Finance Hub, we help trustees prepare impactful annual reports that not only meet legal requirements but also inspire confidence in donors and stakeholders. Through our ngo financial management services and financial management for NGOs training, trustees can learn how to present both achievements and finances in a way that maximises credibility and support.

Receipts and payments accounts

For smaller charities, the receipts and payments accounts method offers a simplified way to prepare annual financial statements. Instead of applying complex accruals-based rules, this method simply records money as it comes in and goes out. While not suitable for every organisation, it can reduce administrative burdens for those operating on a modest scale.

1. When receipts and payments accounts can be used

The Charity Commission allows unincorporated charities with annual income of £250,000 or less to prepare receipts and payments accounts. This approach cannot be used by charitable companies or Charitable Incorporated Organisations (CIOs), both of which must follow accruals accounting regardless of income level.

2. How receipts and payments accounts work

Receipts and payments accounts are straightforward:

• Receipts record all incoming funds, such as donations, grants, membership fees, or fundraising income.
• Payments record all outgoing expenses, such as rent, salaries, utilities, or project costs.

No attempt is made to match income with expenditure in the period it relates to, and assets or liabilities are not included. It is essentially a cashbook summary.

3. Advantages of this method

The main benefits are simplicity and accessibility. Small charities without professional accountants can manage this method with basic bookkeeping. It also costs less to prepare and avoids the complexity of the Charity SORP accruals framework.

4. Limitations of receipts and payments accounts

While simple, this method provides less insight into the organisation’s true financial position. Because it excludes assets, liabilities, and accruals, it can paint an incomplete picture for funders or regulators. For charities close to the £250,000 threshold, it may be wiser to adopt accruals early to prepare for future growth.

FAQ: What accounting records must not for profit organisations keep in the UK?

Even if a charity prepares receipts and payments accounts, it must still keep accurate accounting records, including invoices, receipts, bank statements, contracts, and donor Gift Aid declarations. These records form the evidence for the financial statements and must be retained for at least six years.

At NGO Finance Hub, we help smaller organisations choose the most appropriate accounting method and set up simple but effective systems. Through our ngo financial management services and financial management for NGOs training, even small charities can comply with requirements while freeing up more time for their mission.

Accruals accounts for charities

For most medium and large charities, the accruals accounts for charities method is mandatory. Unlike receipts and payments, accruals accounting provides a more accurate picture of a charity’s financial position by recognising income and expenses when they are earned or incurred, not just when cash moves. This approach is more complex but is essential for larger organisations that need to demonstrate transparency to regulators, donors, and stakeholders.

1. When accruals accounts are required

The Charity Commission requires accruals accounts in the following cases:

• All charitable companies and CIOs – regardless of size.
• Unincorporated charities with income above £250,000 – must prepare accruals-based accounts in line with the Charity SORP.
• Charities subject to audit thresholds – where income exceeds £1m, or assets exceed £3.26m with income above £250k.

This ensures that larger or incorporated charities are reporting on a basis that reflects their true financial health.

2. How accruals accounts work

Accruals accounts record income and expenditure when they are earned or committed, rather than when money actually changes hands. For example:

• A grant awarded in December but not received until February must be recorded as income in December.
• A supplier invoice received in March but paid in April must be recorded as an expense in March.

This method ensures accounts show assets, liabilities, debtors, and creditors, giving a complete financial overview.

3. Advantages of accruals accounting

• Transparency – shows the charity’s true financial position at year end.
• Credibility – gives funders and donors confidence in the accounts.
• Compliance – aligns with the Charity SORP and FRS 102 requirements.
• Forward planning – helps trustees understand commitments and resources beyond just cash flow.

4. Challenges of accruals accounting

The main drawback is complexity. Preparing accruals accounts requires knowledge of accounting standards, often necessitating professional support. Smaller charities transitioning from receipts and payments may find it difficult to adjust. Trustees who lack financial expertise may struggle to interpret accruals-based statements without training.

FAQ: What are the different types of accounts charities can prepare based on size and income?

• Receipts and payments accounts – available to unincorporated charities with income of £250,000 or less.
• Accruals accounts – required for all charitable companies and CIOs, and unincorporated charities above £250,000 income. Larger charities exceeding audit thresholds must also have their accounts externally audited.

At NGO Finance Hub, we support organisations in managing the transition to accruals and ensuring compliance with the Charity SORP. Our ngo financial management services and NGO finance course provide trustees and finance teams with practical tools to prepare, interpret, and present accruals accounts with confidence.

Independent examination vs audit

One of the most important decisions in preparing not for profit organisation accounts is whether the charity requires an independent examination or a full audit. Both provide external scrutiny of financial statements, but they differ significantly in scope, cost, and the level of assurance provided. Understanding these differences is essential for trustees who must comply with UK charity law.

1. Independent examination explained

An independent examination is a review carried out by a qualified examiner who checks whether the accounts are consistent with the charity’s records and comply with legal requirements. Unlike an audit, the examiner does not express an opinion on whether the accounts give a “true and fair view.” Instead, they confirm that nothing has come to their attention that suggests the accounts are materially incorrect.

Independent examinations are less intensive than audits and therefore less costly. They are designed to provide an appropriate level of assurance for small and medium-sized charities.

2. Audit requirements for larger charities

An audit is a much more rigorous process. Auditors test financial systems, review internal controls, and provide an independent opinion on whether the accounts give a true and fair view of the charity’s financial position. Audits are more expensive and time-consuming, but they provide a higher level of assurance.

UK charity law requires an audit if:

• Annual income exceeds £1 million, or
• Gross assets exceed £3.26 million and income exceeds £250,000.

Some funders may also insist on audited accounts, even if the legal threshold is not met.

3. Choosing the right level of scrutiny

Trustees must ensure that they select the appropriate level of external review. Preparing for either an independent examination or an audit requires accurate records, proper internal controls, and compliance with the Charity SORP. Charities below the audit threshold often choose an independent examination to reduce costs while still demonstrating accountability.

4. The benefits of scrutiny

While external scrutiny can feel burdensome, it provides confidence to donors, funders, and regulators. A clean independent examiner’s report or audit opinion reassures stakeholders that the charity’s finances are well managed. Conversely, failure to meet these obligations can damage credibility and lead to regulatory intervention.

FAQ: When is an independent examination required and when is a full audit necessary?

An independent examination is required for charities with income over £25,000 up to the audit thresholds. A full audit is legally required when income exceeds £1m or when gross assets exceed £3.26m and income is above £250k. Some funders may require an audit regardless of thresholds.

Annual returns to Charity Commission

Every registered not for profit organisation accounts in England and Wales must complete an annual return to the Charity Commission, alongside submitting its accounts and trustees’ annual report. This process is a cornerstone of charity regulation, ensuring transparency and accountability across the sector. For trustees, understanding the deadlines, requirements, and potential consequences of non-compliance is vital.

1. What is an annual return?

The annual return is a structured online form submitted to the Charity Commission. It collects key information about the charity’s activities, finances, governance, and compliance with regulatory obligations. The size of the charity determines the level of detail required, but every registered charity with income above £10,000 must complete one.

2. Deadlines and filing rules

Charities must submit their annual return within 10 months of the end of their financial year. For example, a charity with a 31 March year-end must file by 31 January of the following year. Missing this deadline can lead to the Commission flagging the charity as “overdue” on the public register — a red mark that donors and funders often check before giving support.

3. What information is included?

Annual returns require charities to provide:

• Financial information, including income, expenditure, and reserves.
• Details of trustees, governance structures, and risk management.
• Information on overseas activities and safeguarding policies, where relevant.
• Confirmation of compliance with charity law and fundraising regulations.

Larger charities (with income above £25,000) must also file their not for profit organisation accounts and trustees’ annual report with the return.

4. Consequences of non-compliance

Failing to file accounts and returns on time can trigger regulatory action. The Commission may open a compliance case, issue warnings, or in serious cases, remove the charity from the register. Beyond legal risks, late filing undermines donor trust and can jeopardise funding applications. Many grant makers and corporate partners check the Charity Commission register before awarding funds.

FAQ: What are the deadlines and processes for submitting accounts and annual returns?

Charities must submit their annual return and accounts within 10 months of their financial year end. The process involves completing the online return form, uploading not for profit organisation accounts and the trustees’ annual report, and confirming compliance information. Failure to meet deadlines can result in public “overdue” notices and regulatory intervention.

At NGO Finance Hub, we guide trustees through the entire reporting cycle, ensuring deadlines are met and requirements are fully understood. Our ngo financial management services and financial management for NGOs training provide step-by-step support so charities can remain compliant and maintain the confidence of funders and regulators.

Gift Aid accounting and reporting

For many UK charities, Gift Aid accounting and reporting is a crucial part of fundraising and financial management. Gift Aid allows charities to increase the value of eligible donations by 25% at no extra cost to the donor, making it one of the most effective tax reliefs available. However, to benefit, charities must apply the rules carefully and maintain accurate records for HMRC.

1. How Gift Aid works

When an individual donates £100 to a charity and completes a valid Gift Aid declaration, the charity can claim an additional £25 from HMRC. This uplift applies only to donations from UK taxpayers and requires the donor to have paid enough tax to cover the claim. Corporate donations and certain fundraising events may not qualify.

2. Accounting for Gift Aid income

Charities must recognise Gift Aid income in their Not for profit organisation accounts when there is a valid claim and it is reasonably certain that HMRC will pay. Under accruals accounting, this means recognising Gift Aid income in the same period as the donation, even if the cash has not yet been received. Under receipts and payments accounts, Gift Aid is recorded only when the payment is received.

3. Reporting and compliance requirements

To remain compliant, charities must:

• Keep a valid Gift Aid declaration for each donor.
• Retain donor records for at least six years.
• Submit accurate Gift Aid claims through HMRC’s online system.
• Avoid claiming Gift Aid on ineligible payments, such as donations where the donor receives a benefit (e.g., event tickets).

Mistakes can lead to HMRC clawing back funds and imposing penalties.

4. Benefits and risks of Gift Aid

Gift Aid significantly boosts fundraising income, making it one of the most valuable tools available to UK charities. However, it also carries compliance risks. Trustees are responsible for ensuring robust record-keeping, staff training, and accurate reporting to HMRC.

FAQ: How do charities account for Gift Aid donations?

Charities account for Gift Aid by recognising it as income either when donations are made (under accruals) or when HMRC pays the claim (under receipts and payments). Accurate donor declarations and claim records must be maintained to support the income.

Accounting software for not for profit organisation accounts

As regulatory requirements become more complex, many organisations turn to accounting software for not for profit organisation accounts to streamline their reporting, bookkeeping, and compliance. The right tools not only simplify the preparation of annual not for profit organisation accounts but also improve day-to-day financial management, reduce errors, and strengthen transparency for trustees and donors.

1. Why specialist accounting software matters

Unlike commercial businesses, charities have unique needs: restricted and unrestricted funds, Gift Aid claims, multiple income streams, and reporting to the Charity Commission. Generic accounting tools may not handle these requirements effectively, making specialist charity accounting software a worthwhile investment.

2. Popular not for profit organisation accounting software options in 2025

Several platforms are widely used by UK Not for profit organisations:

• Xero – Cloud-based, user-friendly, with add-ons for charity reporting and fund accounting.
• QuickBooks Online – Flexible, integrates with donor management systems, suitable for small to medium charities.
• Sage Intacct for Nonprofits – Robust, designed for larger organisations, includes advanced reporting and internal controls.
• Paxton Charity Accounting – UK-specific software tailored for SORP compliance and fund reporting.
• AccountsIQ – Cloud-based, suitable for multi-entity or international charities needing consolidated reporting.

3. Benefits of charity accounting software

• Automated compliance – Ensures reports meet SORP and HMRC requirements.
• Gift Aid integration – Automates claims and record-keeping.
• Transparency – Provides clear dashboards for trustees and management.
• Efficiency – Reduces manual data entry and improves accuracy.
• Scalability – Supports growth as income and complexity increase.

4. Challenges and considerations

Cost can be a barrier for smaller charities. Additionally, implementing new software requires training and sometimes cultural change within the organisation. Trustees must ensure staff and volunteers are properly trained and that controls are in place to protect data and ensure accuracy.

FAQ: What software or tools are recommended for charity accounting?

Recommended tools in the UK include Xero, QuickBooks, Sage Intacct for Nonprofits, Paxton, and AccountsIQ. The best choice depends on the size, structure, and reporting needs of the charity. Small charities may prefer user-friendly cloud solutions, while larger organisations benefit from more robust platforms with advanced controls.

At NGO Finance Hub, we support charities in selecting and implementing the right software for their needs. Through our ngo financial management services and NGO finance course, we train finance teams to get the most out of their systems, ensuring compliance, efficiency, and strong financial governance.

Fraud risks and internal controls

Fraud is a serious concern for the non-profit sector. Because charities rely heavily on public donations, grants, and volunteers, they are particularly vulnerable to financial mismanagement or deliberate wrongdoing. Strengthening fraud risks and internal controls is therefore a critical part of managing not for profit organisation accounts in the UK.

1. Why charities are vulnerable to fraud

Charities often operate with limited staff, a high reliance on volunteers, and constrained budgets. These factors can make it harder to implement strong controls. At the same time, the public nature of charitable funds attracts scrutiny: any hint of fraud can damage reputation and erode donor trust.

2. Common types of fraud in non-profits

Some of the most frequent risks include:

• Misuse of funds – applying grants or donations to purposes other than those agreed.
• Expense fraud – inflated or false claims for reimbursement.
• Payroll or procurement fraud – payments to fictitious employees or suppliers.
• Cyber fraud – phishing attacks, fake invoices, or donation scams.
• Collusion – trustees or staff bypassing controls to approve inappropriate transactions.

3. Essential internal controls

Trustees must ensure that effective financial controls are in place, including:

• Segregation of duties – no single individual should control all aspects of a transaction (e.g., authorising and paying invoices).
• Dual authorisation – significant payments should require sign-off by two trustees or senior staff.
• Regular bank reconciliations – checking bank statements against accounting records monthly.
• Clear policies – documented procedures for expenses, procurement, and cash handling.
• Whistleblowing channels – safe reporting systems for staff and volunteers.

4. Balancing oversight with resources

Smaller charities may feel these controls are too demanding, but even simple steps like requiring dual signatories on cheques or online payments can drastically reduce risks. Larger charities may need more sophisticated systems, including internal audit functions or specialist software.

FAQ: What financial controls should not for profits have in place to prevent fraud?

Key controls include segregation of duties, dual authorisation for payments, monthly bank reconciliations, clear financial policies, and whistleblowing procedures. These measures protect funds, reassure donors, and help trustees fulfil their legal responsibilities.

Filing accounts with Companies House for charitable companies

For charitable companies, accounting obligations are twofold: they must comply with Charity Commission requirements and also meet the filing rules of Companies House. Understanding the process of filing accounts with Companies House for charitable companies is essential to avoid penalties, maintain legal standing, and prepare for the 2025 reforms that tighten reporting standards.

1. Who needs to file with Companies House?

Any charity incorporated as a company limited by guarantee must file not for profit organisation accounts and an annual confirmation statement with Companies House. Unlike unincorporated charities or Charitable Incorporated Organisations (CIOs), charitable companies are subject to company law as well as charity law. This means double reporting — once to the Charity Commission and again to Companies House.

2. Current filing requirements

Charitable companies must submit:

• Annual Not for profit organisation accounts prepared under the Charity SORP and FRS 102.
• Directors’ (trustees’) report outlining governance, activities, and compliance.
• Confirmation statement confirming directors, registered office, and share structure (if applicable).
• Not for profit organisation accounts must be filed within 9 months of the end of the financial year with Companies House, compared to 10 months allowed by the Charity Commission.

Late filing can result in financial penalties and a permanent mark against the company’s record, visible to the public.

3. 2025 Companies House reforms

From 2025, new reforms will bring stricter rules for charitable companies:

• Mandatory digital filing – paper submissions will no longer be accepted.
• Increased transparency – greater disclosure of controlling interests and trustee details.
• Stricter deadlines – Not for profit organisation accounts must be filed more promptly to improve transparency.
• Enhanced enforcement – Companies House will have stronger powers to challenge or reject filings that are incomplete or non-compliant.

These changes are part of a wider push by the UK government to modernise corporate reporting and combat financial crime.

4. How to stay compliant

Trustees should align Charity Commission and Companies House filings to ensure consistency and avoid duplication errors. Using charity accounting software can simplify dual reporting, and professional guidance is highly recommended given the increased scrutiny.

FAQ: How will new Companies House filing reforms affect not for profit organisations?

The reforms will require all charitable companies to file digitally, disclose more information about trustees and controlling interests, and meet shorter deadlines. Failure to comply could result in penalties or even removal from the register.

FAQ: How does accounting differ for Charitable Incorporated Organisations versus other legal structures?

CIOs only report to the Charity Commission, making compliance simpler. Charitable companies, however, must report to both Companies House and the Charity Commission, effectively doubling their administrative responsibilities.

Practical tips for trustees and managers

Meeting the requirements for not for profit organisation accounts can feel overwhelming, particularly for smaller charities with limited resources. Yet with the right systems and mindset, trustees and managers can not only stay compliant but also use financial reporting to strengthen credibility and attract support.

1. Strengthen governance early

Trustees should ensure clear financial policies and responsibilities are in place from the outset. Regular board meetings, documented decisions, and accurate minutes show regulators that the charity is being properly managed. Training trustees on financial oversight is one of the most effective ways to avoid mistakes.

2. Align reporting with strategy

Not for profit organisation accounts should not be seen as a compliance task alone. They are an opportunity to tell a story about impact, financial resilience, and responsible stewardship. Linking figures in the accounts to the objectives in the trustees’ annual report reassures donors and grant-makers that money is being used effectively.

3. Invest in systems and tools

Even small charities benefit from adopting charity accounting software that simplifies Gift Aid claims, reporting, and record-keeping. Cloud-based platforms like Xero or QuickBooks allow trustees to access real-time financial data, reducing the risk of errors and enabling better decision-making.

4. Prepare for external scrutiny

Whether facing an independent examination or full audit, organisations should ensure accounts are reconciled, records are complete, and controls are robust. Being proactive not only reduces stress but also demonstrates professionalism to funders and regulators.

5. Seek professional support

Charities don’t need to manage everything alone. Outsourcing certain functions or accessing specialist training can save time and ensure compliance. At NGO Finance Hub, our ngo financial management support, financial management for NGOs training, and practical ngo finance course are designed to give trustees and managers the tools they need to stay compliant while focusing on their mission.

By taking these practical steps, trustees can turn accounting obligations into an asset — building trust, securing funding, and protecting the organisation’s reputation.