How do I account for accruals or deferments over year end?

Where a charity produces accounts on an accruals basis (as opposed to a cash basis), some transactions need to be accounted for within the accounts for the current financial year, whether they have been actually paid (for expenditure) or received (for income), or not. All charities with an income over £250,000, all charitable companies (irrespective of income), and some other charities (according to specific circumstances) will produce accounts on an accruals basis. If you are unsure about your basis of accounting, please speak with your independent examiner or auditor.

The following transactions, where the value of the transaction is considered to be 'material' to your organisation need to be recorded as an accrual or deferment. This is accomplished through the Adjustments module of ExpensePlus.

• Accounts Receivable or debtors (Money you are owed);
• Prepayments (Money you have paid in advance, for example, a venue hire deposit for an event taking place in the next financial year);
• Accounts Payable or creditors (Money you owe);
• Deferred Income (Money you have received in advance, such as ticket deposits or presales for an event taking place in the next financial year).

All of the above are managed through the Adjustments module. To better understand this functionality, watch the module overview video here, or click on one of the links above.