{"id":5318,"date":"2018-08-02T16:29:06","date_gmt":"2018-08-02T15:29:06","guid":{"rendered":"https:\/\/sagestaging.wpengine.com\/en-gb\/blog\/?p=5195"},"modified":"2026-01-29T11:32:22","modified_gmt":"2026-01-29T11:32:22","slug":"non-profit-organisation-accounts","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/non-profit-organisation-accounts\/","title":{"rendered":"How to step up your accounts as a non-profit organisation"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tHow to step up your accounts as a non-profit organisation\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2018-08-02T16:29:06+01:00\">2 August, 2018<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"How to step up your accounts as a non-profit organisation\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/non-profit-organisation-accounts\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/keirthomasbryant\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/06\/keir-short-hair-350x350.jpg\" class=\"entry-author__image\" alt=\"\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/06\/keir-short-hair-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/06\/keir-short-hair.jpg 760w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Keir Thomas-Bryant<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n<div class=\"sage-block-classic-wrapper\">\n\n<p>Non-profit organisations range in size from small community projects to some of the UK\u2019s biggest and best-known charities; public sector organisations may also be designed to deliver services without making a profit.<\/p>\n<p>So what are the common features of a non-profit organisation? ACCA, the global body for professional accountants, lists some of their common characteristics (also known as <a href=\"https:\/\/www.accaglobal.com\/gb\/en\/student\/exam-support-resources\/fundamentals-exams-study-resources\/f1\/technical-articles\/not-for-profit-organisations.html\">not-for-profit organisations<\/a>) as follows:<\/p>\n<ul>\n<li>Typically no risk capital from external shareholders<\/li>\n<li>No dividends \u2013 any surplus is retained<\/li>\n<li>Usually a social, cultural or environmental dimension<\/li>\n<\/ul>\n<p>However, <mark class=\"highlight-and-share\">running a non-profit organisation does not mean ignoring the financial aspects that are involved in the effective running of any other business<\/mark>.<\/p>\n<p>Ultimately, many non-profit organisations do run at a surplus, and it is important to be able to account for the funds that are retained by the company at the <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/top-tips-for-financial-year-end-success\/\">end of each financial year<\/a>.<\/p>\n<h2><strong>Getting a bank account<\/strong><\/h2>\n<p>The first step towards getting your accounting in order is to make sure you have the right bank account \u2013 and the <a href=\"http:\/\/www.smallcharities.org.uk\/\">Small Charities Coalition<\/a> says there is plenty of variety in this area.<\/p>\n<blockquote>\n<p>\u201cAs well as charity bank accounts, some banks offer other specialist accounts, such as \u2018community\u2019, \u2018not for profit\u2019 or \u2018clubs and charities\u2019 accounts. There are also specialist charity banks, as well as high street banks.\u201d\u00a0\u2013 Small Charities Coalition<\/p>\n<\/blockquote>\n<p>Do plenty of research in this area \u2013 speak to the banks to find out what you will need to provide in order to open a non-profit bank account, and whether the product on offer meets your needs.<\/p>\n<p>In some circumstances, you might prefer to open a treasurer bank account in the name of an individual, rather than having an account for the charity or organisation as an entity in its own right.<\/p>\n<p>The Small Charities Coalition recommends making sure this account is kept wholly separate from the treasurer\u2019s other finances, and authorising a second signatory for cheques if possible.<\/p>\n<p>You may also want to issue a statement to trustees, if you have any, to confirm the treasurer is holding the money in the account on behalf of your organisation; you should keep a copy of this statement for your records.<\/p>\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Running a non-profit organisation as a business <\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Our free whitepaper discusses the challenges of running a successful NPO. Discover the best solutions to complications in resources, compliance, reporting, and much more.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-5373162c-d999-46b7-8369-49cc1d6ba396\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Get your guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1317546968-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1317546968-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<h2><strong>Sticking to a schedule<\/strong><\/h2>\n<p>Like any other business, <mark class=\"highlight-and-share\">you will need to file accounts on an annual basis<\/mark>, so you should take care to keep to a sensible schedule when doing this.<\/p>\n<p>The Brighton-based <a href=\"http:\/\/www.resourcecentre.org.uk\/information\/charity-reporting-and-accounts\/\">Resource Centre<\/a> offers guidance on managing money for community groups, charities and non-profits.<\/p>\n<p>It stresses the benefits of annual accounts as a way to define your aims for the future, as well as to manage your finances more effectively on an ongoing basis.<\/p>\n<p>If you are registered as a charity, you must prepare a set of accounts, an annual return, and a trustees\u2019 annual report.<\/p>\n<p>Other non-profit organisations may be subject to different rules on exactly what types of accounts and financial reports you must prepare \u2013 these depend on your legal structure, income and any assets you hold.<\/p>\n<h2><strong>Within the year<\/strong><\/h2>\n<p>The end of the financial year is not the only time when you may need to prepare a report. You may also need:<\/p>\n<ul>\n<li>Quarterly statements for the board of directors<\/li>\n<li>Quarterly progress reports for grants and contracts<\/li>\n<li>Weekly\/monthly budgeting updates<\/li>\n<\/ul>\n<p>By embracing accounting for your non-profit organisation\u2019s finances at every stage throughout the year, you put yourself in the best position to know exactly where you stand, what you are working towards, and how to respond to any changes in your circumstances and the wider economy.<\/p>\n<p>As with any company, this helps to insulate you against economic shocks, as you will be able to respond with greater agility when an issue arises.<\/p>\n<h2><strong>Audits and examinations<\/strong><\/h2>\n<p>Depending on the constitution of your non-profit organisation, you may need to have your accounts audited, or you may need to have them independently examined.<\/p>\n<p>A full audit is typically needed for larger charities but for smaller non-profits, the company constitution should let you know what you need to do.<\/p>\n<p>The Resource Centre describes independent examinations as follows:<\/p>\n<blockquote>\n<p>\u201cThis is the process of scrutinising a charity\u2019s accounts below the level of a professional audit. The procedures are defined by law and by the Directions of the Charity Commission.<\/p>\n<p>The independent examiner will gain an understanding of the charity, look at the accounts and supporting documents, and write an independent report to accompany the accounts and Trustees\u2019 report.\u201d<\/p>\n<\/blockquote>\n<p>Independent examiners can be accountants, finance workers and charity treasurers, and should confirm that the necessary accounting records have been kept and, if relevant, that the accounts comply with the terms of the Charities Act.<\/p>\n<p>A full audit, on the other hand, must be carried out by a registered auditor, who must confirm that in their opinion, the accounts filed represent a true and fair view of your organisation\u2019s financial position.<\/p>\n<h2><strong>Accounting software<\/strong><\/h2>\n<p><a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/accounting\/\">Accounting software<\/a> can help you to stay on top of your finances on an ongoing basis by making it easier to keep your records in electronic form, and in turn making it easier to generate reports at any point throughout the year.<\/p>\n<p>Many\u00a0non-profit organisations use accounting software to do just that, from weekly and monthly budgeting through to quarterly reports and end-of-year accounts.<\/p>\n<p>Good online accounting software simplifies record-keeping, making it faster and easier to enter your organisation\u2019s income and outgoings, and to make sure that the two balance, taking into account any surplus or shortfall.<\/p>\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">10 things to look for in small business accounting software <\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Using the right technology can give you the time and space to make your business a success. This guide offers 10 points to consider when looking for the right accounting software for your company.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-20bdb5ca-e469-46ca-aff9-2d563f2d983b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Get your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"999\" height=\"666\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/06\/SAGE_MSA_051217_BB_268_All-Uses.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/06\/SAGE_MSA_051217_BB_268_All-Uses.jpg 999w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<\/div>\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Non-profit organisations range in size from small community projects to some of the UK&#8217;s biggest [&hellip;]<\/p>\n","protected":false},"author":280,"featured_media":5533,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[6],"tags":[15],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[73,74,75],"imagine_tag":[109],"coauthors":[369],"class_list":["post-5318","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-grow-business","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Keir Thomas-Bryant","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/11\/206250_25487_1200x600.jpg","imagine_tags":{"109":"Small 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