New online charity accounting toolkit

The new toolkit (released June 2009) is a web-based learning aid produced in partnership with BPP Learning Media and designed for treasurers, workers and volunteers in small to medium sized charities. Modules cover:

• What is a charity
• Charity Commission & law
• Cash accounting (cash book & petty cash book)
• Bank Reconciliation
• Receipts & payments; & trustees annual report
• Advanced accounting
• Management reporting and budgeting
• Accruals, double entry bookkeeping, and taxation and trading
• Assessment

Each module has a number of sections covering a range of topics and includes multiple choice questions to aid learning. A self assessment module and certificate of completion is included.

You can access a demonstration module by registering a Charity Accounting Toolkit.

Information on buying (including prices for multiple copies) is also available.

Module content

Module 1: What is a charity?

This module starts by exploring various charity legal structures. It then looks at reporting requirements as well as the roles of those involved in governing and managing a charity, including the role of the treasurer. It also describes the accounting records a charity should keep. The module concludes with consideration of risks and a brief introduction to banking requirements.

Module 2: Charity Commission & Law

Introduces the Charities Acts and the Charity Commission (note that variations for Scotland and references to the Office of the Scottish Charity Regulator are included), including more on reporting requirements. The module continues with a closer look at the trustees’ annual report and the accounting requirements for charities including the statement of recommended practice (SORP). Regulations surrounding audit and independent examination of accounts are also covered. The module concludes with a first look at charity reserves.

Module 3: Cash book

This module looks at the practicalities of basic bookkeeping. It takes you though the process of recording receipts and payments in a cash analysis book (for bank entries) and petty cash book (for cash entries). This introduction to cash accounting will also help with understanding the similar processes involved when recording data using basic accounting software or a spreadsheet.

Module 4: Bank reconciliation

Having entered the transactions in the cash book this module shows you how to calculate the cash book balance and reconcile it to the bank statement balance. The module guides you through dealing with those potentially troublesome parts of the process such as correcting for errors and missing entries and recording returned cheques.

Module 5: Receipts and payments and trustees annual report

This will help you turn your bookkeeping entries into a financial report. The module shows you how to complete:

•  the trustees’ annual report and
• receipts and payments account statement,

Showing you where the information comes from.

Module 6: Advanced Accounting

An introduction to the Charity Commission’s: ‘Internal Financial Control Self Checklist for Charities’; followed by a description of best practice to ensure security and credibility.

Module 7: Management Reporting and Budgeting

Management information, reporting and the process of setting budgets is the subject of this module. It includes the preparation of a simple cash budget and an introduction to relevant financial ratios.

Module 8: Accruals, double entry bookkeeping, and taxation and trading

This module provides an introduction to double entry bookkeeping; a method of accounting which is more commonplace in larger charities. Some of the accounting requirements for larger charities are also covered. Finally there is an overview of aspects of charity trading and taxation issues.

Assessment

This assessment is intended to test your knowledge of the information covered in the Toolkit. If you have successfully achieved a result of 50% or better you will be given the opportunity to print a certificate of completion.