Accruals accounts

There are two ways a charity can present its accounts. Receipts and payments follows the bank account. Accruals accounts follow economic reality.

Accruals accounts must follow the Charities SORP and include a Statement of Financial Activities, a balance sheet and notes. They are compulsory for charitable companies whatever their size, and for other charities above the statutory threshold.

The threshold changed recently and the basis on which it applies is not obvious — see which accounts you need. Moving from receipts and payments to accruals is a project, not a switch.