Association accounts

[Pete D]

Hi, can anyone tell me what their local association does in terms of getting their annual accounts verified / signed off.
My association has charitable status and has a turnover of just under 20k. Most of this is generated from sales to members from our bulk buying scheme.
For years we have had a good treasurer who has kept us solvent (15-20k in bank) and claimed back tax from HMRC etc. At most committee meetings he produces a report of the accounts and the bank statements for sign off by the chair. Annually he gets an independent examiner (for a few jars of honey) to verify the bank statements, the income and out goings, stock value, assets and liabilities. This has seemed to work well for years.
He is making preparations to step down and pass the accounts on and at the same time we want to move to an easier more flexible accounts system, he currently uses an expensive SAGE system that he used to run his business with. The committee have backed a proposal the we gat an account report to verify the financial position at that time, not an audit. This will cost circa £600 which I think is unnecessary.
What software do you guys use
What do you do to verify the accounts, monthly, quarterly, annually

cheers

Pete

 

[madasafish]

Two members - with accounting knowledge of some sort - review the accounts in detail annually. (Neither are ever Committee members),
Full access to all information and ask anyone questions..
Report to members at AGM and comment..
Elected by members.

Currently one is a qualified accountant, the other I don't know.

 

[enrico]

You don't NEED any training or qualifications to verify accounts. I used to do it for our Parish Council!
E

 

[Murox]

Check what is required for the charitable status. Usually its just independent eyes not necessarily an accountant. But rules do vary so check.

 

[jenkinsbrynmair]

if he has been getting refunds from HMRC then I assume you are VAT registered? If so, from now on all quarterly accounts submitted to them must be done electronically

 

[Repwoc]

Only if the turnover is higher than the VAT threshold, as someone pointed out when I said the same thing some time ago.

 

[Apiarisnt]

Independent examination of charity accounts: guidance for trustees

https://www.gov.uk/government/publi...dent-examination-of-charity-accounts-trustees

 

[jenkinsbrynmair]

Only if the turnover is higher than the VAT threshold, as someone pointed out when I said the same thing some time ago.

But if you are not VAT registered, whether voluntarily (when you can register under the threshold, and is worthwhile for businesses such as farmers and beekeepers), or due to turnover you cannot claim VAT back on anything, the only thing Pete's association could claim back then would be gift aided donations.
That's how it worked when I was VAT registration officer for the Bristol area, doubt things have changed much since

 

[Repwoc]

..., doubt things have changed much since

They haven't. You can't reclaim VAT if you're not VAT registered.

I meant the electronic thing - organisations with a turnover less than the VAT threshold may still register for VAT so long as they make taxable supplies, but they don't need to submit returns using the MTD for VAT gateway.

 

[Pete D]

Not VAT registered, been claiming Gift Aid back, better off in our accounts than BBKA

 

[Pete D]

https://www.gov.uk/government/publi...dent-examination-of-charity-accounts-trustees

Great thank you

 

[BMH]

Only if the turnover is higher than the VAT threshold, as someone pointed out when I said the same thing some time ago.

That's only this year.

Next year its ALL VAT registered businesses regardless of turnover

Im already on quickbooks and its an absolute doddle to track expenses, sales and submit VAT returns. It literally completes the return for you and just hit submit, once you have linked your account to HMRC.