Preparing accounts for third sector entities is much less straightforward than it is for conventional limited companies. Many mainstream firms of accountant do not appreciate the distinction between societies and companies for example. Because we are specialists we are well versed in the following types of accounts production:
- Co-operative and Community Benefit Societies, which need to comply with FRS102 but not with Companies Act 2006
- Charitable Community Benefit Societies, Charitable Incorporate Organisations, and Unincorporated Charities, which need to comply with the Charity SORP and FRS102 but not Companies Act 2006
- Charitable companies, which comply with Charity SORP, FRS102 and Companies Act 2006
- Group accounts for charitable companies, consolidating a trading subsidiary in the parent charity’s accounts
- Group accounts for community benefit societies, consolidating a trading subsidiary or special purpose entity in the accounts of the parent society
- Companies limited by guarantee; although the formal requirements are minimal, because of the type of activity undertaken (eg grant funded activity) we often find that extra disclosure is required
In accounts production we are sensitive to the needs of the users of the accounts, which may be the trustees or directors; the members or investors; and donors, beneficiaries, funders and regulators. We aim to give the best possible understanding to enable people to make the right decisions. As chartered accountants we will not want our name to be associated with accounts that are in any way misleading.