Managing finances for a charity requires accuracy, accountability, and an in-depth understanding of regulatory requirements. From gift aid submissions to VAT exemptions and SORP-compliant reporting, every aspect of financial management needs careful oversight.
At Pearl Lemon Accountants we specialise in working with UK charities, helping them stay compliant while reducing financial stress. Whether you’re managing restricted grants or reconciling accounts across multiple funding streams, our services are designed to handle the complexities so you can focus on your cause.
Simplifying Charity Accounting with a Framework
Charities often manage diverse funding sources—from donations and grants to trading income. This complexity makes accounting a significant challenge. According to a 2023 report by the Charity Commission, 40% of small charities struggle to meet financial reporting deadlines, citing limited resources as the primary issue.
Our approach ensures your charity’s finances are organised, transparent, and compliant.
Independent Audits and Examinations for Charities
Annual accounts and audits are critical for maintaining trust with funders and the public. We provide detailed independent examinations and audits that comply with SORP 2019 and FRS102 standards.
- Supported a mid-sized charity in Glasgow to complete an audit within four weeks, enabling them to secure a £150,000 grant renewal.
- Helped a London-based non-profit reduce reporting errors by 25% during their last financial cycle.
VAT Solutions for Charities
VAT rules are complex, especially with partial exemptions and trading subsidiaries. Our VAT services ensure your charity benefits from all applicable exemptions without overpaying.
- Recovered £28,000 in VAT for a Manchester community group operating in education and health outreach.
- Provided VAT compliance advice for a Bristol charity launching a new trading subsidiary.
Gift Aid Management Made Easy
Gift aid accounts for 16% of total donations claimed by UK charities, yet many organisations miss out on this critical funding due to poor tracking. We handle every aspect, from donor declarations to HMRC submissions.
- Increased gift aid claims by 20% for a Sheffield-based arts charity by automating declarations.
Resolved historical discrepancies for a Birmingham non-profit, resulting in £12,000 in backdated claims.
Streamlined Reporting for Grant Compliance
Grant funding often comes with specific conditions. Mismanaging these funds can lead to penalties or loss of future funding.
Assisted a Cardiff environmental charity in submitting detailed expenditure reports, securing an additional £75,000 in grant funding.
A Process That Works for Every Charity
Every charity’s financial structure is different, so our process adapts to your specific needs while ensuring compliance at every stage.
Whether your focus is local or national, our process covers every base. According to the Small Charities Coalition, 80% of charities with incomes below £250,000 cite accounting complexities as a major challenge—and we’re here to address that.
Step 1: Financial Assessment and Review
We start with a detailed analysis of your current financial operations, including audits, VAT status, and grant management. This allows us to identify gaps and inefficiencies.
Step 2: Actionable Financial Planning
Using insights from our assessment, we create a strategy covering all critical areas, from SORP-compliant reporting to gift aid optimisation. This plan is designed to meet both short-term needs and long-term goals.
Step 3: Implementation and Monitoring
We take over key processes like payroll management, VAT submissions, and donor tracking. Our team ensures that every aspect of your finances aligns with HMRC and Charity Commission requirements.
Step 4: Regular Updates and Advisory Support
As regulations and funding conditions evolve, we provide ongoing support to keep your charity on track. This includes monthly financial reviews and real-time updates.
Tools and Expertise to Simplify Charity Accounting
Charities need more than basic accounting support—they need tools and strategies that adapt to their mission and funding requirements.
Donor Tracking and Gift Aid Platforms
Keep donor information organised and automate gift aid submissions. On average, our tools reduce admin time by 15 hours per month.
VAT and Taxation Calculators
Handle complex VAT scenarios, including partial exemptions and trading income calculations, with real-time accuracy. These tools saved a Leicester charity £10,000 last year alone.
Payroll Systems for Diverse Staff Structures
From salaried employees to short-term project workers, our payroll systems are designed to handle any setup while staying compliant with HMRC.
Compliance and Reporting Dashboards
Access comprehensive dashboards that track restricted funds, grant allocations, and income from trading subsidiaries. This ensures complete transparency for trustees and funders.
Charity-Specific Financial Guides
Stay informed with our guides on topics like “Preparing SORP-Compliant Reports” or “Handling VAT for Trading Subsidiaries.”
Frequently Asked Questions
We create detailed reports separating restricted and unrestricted funds, ensuring accurate allocation and compliance with grant terms.
We assess your eligibility for zero-rated goods and partial exemptions, filing accurate returns to minimise liabilities.
Yes, we conduct examinations for charities with incomes under £1 million, ensuring compliance with the Charity Commission’s standards.
We track all donor contributions, automate declarations, and ensure submissions meet HMRC requirements.
Yes, we provide financial management for subsidiaries, ensuring compliance while optimising tax efficiency.
Start Your Charity’s Financial Transformation
Your charity’s mission deserves financial clarity and accountability. From reducing audit errors to increasing gift aid claims, we ensure your finances are as impactful as your cause.
Take the First Step – Schedule Your Free Charity Finance Review Today.
