Receipts and Payments Accounts is the simpler of the 2 methods of accounts preparation and may only be used where a non-company charity has a gross income of £250,000 or less during the financial year. Receipts and payments accounts contain a statement summarising all money received and paid out by the charity in the financial year, and a statement giving details of its assets and liabilities at the end of the year. Charitable companies are not allowed by company law to adopt this method.
Templates are available to help eligible non-company charities prepare their trustees’ annual report and receipts and payments accounts. When fully completed these meet the requirements of the law and can be used for submission to the Charity Commission. The pro forma receipts and payments accounts can be used in one of two ways:
(i) where trustees do not wish to design their own annual accounts they may enter the relevant details and amounts from the cash book (and other) records of the charity on to the forms
(ii) trustees who want to produce their own form of receipts and payment accounts can use the forms as a checklist.