Year end accounts - FAQs

This article answers some frequently asked questions regarding year end accounts.

Do I need to create year end accounts?

What type of accounts do I need to create?

Receipts and payments (cash) accounts

Charities in the UK with an annual income below £500,0000*, can often prepare simple Receipts & Payments accounts (as long as they are not charitable companies).

*This threshold increased from £250,000 on 30th September 2026, so charities whose year end is before or on this date must prepare accruals accounts if their income is over £250,000.

Receipts & Payments accounts are a simple form of accounting that consists of a summary of all monies received and paid via the bank and in cash by the charity during its financial year, along with a statement of balances. 

The template for creating receipts and payments accounts can be found on the UK Charity Commission website here. Typically, you just need to enter a summary of your income for the year in section A1, a summary of Expenditure for the year in section A3, and your balance sheet totals in section B1.

Accruals based accounts

Charities with annual income over £5000,000*, or that are charitable companies, need to prepare accounts on an accruals basis that comply with the Charities SORP.

*This threshold increased from £250,000 on 30th September 2026, so charities whose year end is before or on this date must prepare accruals accounts if their income is over £250,000.

Accounts prepared on an accruals basis allocate the costs or income of a particular activity according to when the liability is incurred, or when there is entitlement or certainty about income. This is not necessarily the date on which money is received or paid out. 

Charities should carefully check what type of accounts they need to prepare and we recommend that you speak to your Independent Examiner to make sure.

Can I create my own accounts?

Yes! The year end accounts template in ExpensePlus will help you prepare accounts. If you prepare accounts on an accruals basis, the template will help you create accounts that comply with the Charities SORP.

If you have any questions about how to create your year end accounts or what should be included, you should contact your Independent Examiner.

Will I need my accounts to be independently examined?

If the gross yearly income of your charity is over £40,000*, then you will need your accounts to be independently examined.

*This threshold increased from £25,000 for charity accounts where the year end was before or on the 30th September 2026.

How accurate do my accounts need to be?

Your accounts need to provide an accurate record of your charity's finances.

However, within accounting, there is the concept of materiality - here is an extract from the Charities Commission website:

How precise do the charity's accounts need to be?

The word material is used often in the Charities FRS 102 SORP and in these notes. An item is material if it's inclusion or exclusion from the accounts would be likely to change a reader's view about the accounts. Normally the larger the item the more material it is likely to be.

This blog article explains more about materiality in charity accounting.

What do I do with my signed-off year end accounts?

Once your accounts are completed, you need to submit them to the Charity Commission (and Companies House too if your charity is a charitable company).

Signed-off accounts must be submitted within 10 months of each financial year end to the Charity Commission, and within 9 months to Companies House, if applicable.

Can I adjust my financial year?

If you wish to adjust your charity's financial year dates (e.g. because your financial year start date isn't the 1st of a month) then this is easy to do within the Charity Commission Online Portal (and then within the system settings screen in ExpensePlus).

See this article: Changing your financial year date for more information.