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info@adeptaccountax.com
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Mon - Sat: 9:00 AM - 7:30 PM
info@adeptaccountax.com
Mon - Sat: 9:00 AM - 7:30 PM 
Charities and Community Interest Companies (CICs) have a purpose beyond simply generating commercial profit. At the same time, they need well-managed finances, accurate records and appropriate reporting to operate effectively and demonstrate financial accountability.
Adept Accountax provides accounting and tax support for charities, Community Interest Companies and other organisations working for social and community benefit. We help you keep your financial records organised, understand your financial position and manage the accounting responsibilities associated with your organisation.
Whether you are establishing a new CIC, managing an established charity or looking for ongoing accounting support, we can provide practical financial guidance based on your organisation’s activities and requirements.
We work with organisations that have charitable, community or social objectives, including:
We understand that financial management for these organisations can involve considerations that differ from those of a conventional commercial business.
Financial Considerations for Charities & CICs
Managing the finances of a charity or CIC involves more than recording income and expenditure. Your accounting needs to reflect how your organisation is funded, how its resources are used and the responsibilities associated with its particular structure.
Restricted & Unrestricted Funds
Charities may receive income that is restricted for a particular purpose. Maintaining clear records of restricted and unrestricted funds can help ensure that funds are appropriately monitored and used.
Grants & Funding
Grants and other funding can come with specific conditions and reporting requirements. Accurate financial records can help you monitor funding, expenditure and the financial position of individual projects.
Charity Reporting
Charities have specific accounting and reporting responsibilities, which can vary depending on their structure, size and circumstances. Keeping accurate records is essential for preparing appropriate financial information.
CIC Reporting
CICs are limited companies with additional requirements associated with their community interest status. In addition to their company accounts, CICs have specific reporting obligations, including the CIC Report.
Asset Lock
CICs are subject to an asset lock, which places restrictions on the transfer and use of the company’s assets. The rules can be particularly important when considering distributions, dividends or transfers of assets.
Managing Cash Flow
Maintaining sufficient cash to meet operating costs and deliver planned activities is important for both charities and CICs. Budgets and cash-flow forecasts can help trustees and directors plan ahead.
How Adept Accountax Supports Charities & CICs
Our role is to help you understand and manage the financial side of your organisation so that you have reliable information when making decisions.
Depending on your organisation and circumstances, our support can include:
We can also work alongside your trustees, directors and other professional advisers where specialist legal or regulatory advice is required.
Charity Accounting Services
Charity Bookkeeping
Accurate bookkeeping provides the foundation for reliable financial reporting. We can help you maintain organised records of income, expenditure and other financial transactions.
Charity Accounts
We can assist with the preparation of financial information and annual accounts appropriate to your organisation and its reporting requirements.
Restricted Fund Accounting
Where applicable, we can help maintain clear records of restricted and unrestricted funds so that you can monitor how different sources of income are being used.
Budgeting & Forecasting
Budgets and forecasts can help trustees and management plan expenditure, monitor financial performance and prepare for future funding and operational requirements.
Cash-Flow Management
Understanding when money is expected to come in and when expenditure needs to be paid can help organisations manage their resources more effectively.
Payroll
If your organisation employs staff, we can provide payroll and PAYE support to help you manage your regular payroll responsibilities.
CIC Accounting Services
CIC Accounts
A CIC is a limited company and has company accounting and filing responsibilities. We can help maintain the financial records required to prepare your accounts.
CIC34 Reports
CICs are required to submit a Community Interest Company Report alongside their annual accounts. We can help you organise the financial information needed for your reporting requirements.
CIC Asset Lock
The asset lock is an important feature of the CIC structure. We can help you understand the accounting implications of transactions involving the CIC’s assets, while specialist legal advice should be obtained where appropriate.
CIC Corporation Tax
CICs are companies and can be subject to Corporation Tax on taxable profits. We can help you understand and manage the Corporation Tax requirements relevant to your CIC.
CIC Dividends & Distributions
CICs can have specific rules governing distributions and dividends, depending on their structure and circumstances. If your CIC is considering a distribution, we can help with the accounting aspects and recommend specialist advice where required.
Management Accounts
Regular management information can help CIC directors understand income, expenditure, profitability and cash flow throughout the year.
Why Good Financial Management Matters
For charities and CICs, financial information is not simply about compliance. It can help trustees, directors and management understand whether available resources are being managed effectively and support better decisions about the organisation’s future.
Good financial management can help you:
Reliable financial information gives those responsible for running the organisation greater visibility over its resources and financial commitments.
Charity & CIC: What’s the Difference?
Although charities and CICs can both operate for social or community benefit, they are different legal structures and operate under different regulatory frameworks.
A charity must have exclusively charitable purposes and is subject to charity-specific regulation and reporting requirements.
A Community Interest Company is a type of limited company designed to benefit the community. CICs are subject to the Companies Act framework as well as specific CIC requirements, including the community interest test, asset lock and CIC reporting.
The accounting, tax and reporting requirements that apply to an organisation depend on its legal structure, activities, size and circumstances.
If you are considering establishing a charity or CIC, we can help you understand the accounting requirements and work alongside your legal or specialist advisers where necessary.
Frequently Asked Questions
