Final Accounts for a Not-for-Profit Organisation (M6)

This unit concerns itself with “not for profit” organisations (such as clubs or societies) whose main aim is to provide a facility for members. If the organisation is a registered charity, then the basics of this unit will cover the preparation of final accounts for internal committee purposes but there may be additional information that might be required and the documents may need to be lodged with the Charities Commission or any “parent” organisation.

Not for Profit organisations are normally run by a committee, with a treasurer designated to produce a set of accounts. The names of the various accounts can differ from those of a trading organisation i.e. the bank account is often called a receipts and payments account whilst the trading and profit and loss account is referred to as an income and expenditure account . The balance sheet is also sometimes called a Statement of Affairs. Such organisations often have members who pay a subscription, and the subscriptions account is a new topic that you have not yet met.