Charity accounting

Every year, each charity registered in Scotland must send us an online annual return, along with annual accounts, a Trustees’ Annual Report and an external scrutiny report.

This is a legal requirement, and charities must send this information to us within 9 months of their financial year-end date.

Our step-by-step guide below will help you to understand what information you need to include, what type of accounts you need to prepare, and how to submit this via OSCR Online.

Step 1: What type of accounts should your charity prepare?

Select the button below which best describes your charity. Please be aware that your constitution may include specific details about the type of accounts you need to prepare, so always double check your governing document before submitting.

My annual income is less than £250,000

My charity is a company, a Co-operative Society or a Community Benefit Society

My charity’s governing document specifies I should prepare fully accrued accounts

Fully accrued accounts are required by a funder (or any other reason)

My charity’s trustees have chosen to prepare fully accrued accounts

None of these apply to my charity

My annual income is £250,000 or more

Step 2: Read the fully accrued accounts guidance

Based on your answers, you should prepare fully accrued accounts. Fully accrued accounts record all the transactions of the charity in the financial year and include income which a charity is due to receive and expenses which are due to be met. Fully accrued accounts must be prepared in accordance with the methods and principles of the Accounting and Reporting by Charities: Statement of Recommended Practice (the SORP). They are required for charities with a gross income of £250,000 or more, or if specified by the charity’s governing document or other legislative requirements or trustees.

See our guidance with more information about how to prepare fully accrued accounts:

A guide to charity accounts Fully accrued accounts guidance Trustees’ Annual Report guidance Independent examination guidance

Step 3: Prepare and submit your annual information

After reading the guidance, you should be able to prepare your accounts and annual information in the correct format.

Annual reporting information should be sent to us through our online service, OSCR Online. You must complete an online annual return every year, within 9 months of your charity’s financial year-end date, to send us this information.

As part of the online annual return, you will be asked questions about your charity, its finances and how the charity is run. All the questions should be straightforward to answer for anyone who has a good understanding of how the charity operates. You should also upload your required annual accounts, Trustees’ Annual Report and external scrutiny report.

Find more information on how to do this here:

How to submit an online annual return Using OSCR Online

Step 2: Read the receipts and payments accounts guidance

Based on your answers, you can prepare receipts and payments accounts. Receipts and payments accounts are created using a simple form of accounting that summarises all monies received and paid via the bank and in cash by the charity during its financial year, along with a statement of balances at the financial year-end. They are suitable for most small non-company charities with a gross annual income under £250,000 and where there is no requirement within the charity’s governing document or by funders or the charity trustees to prepare fully accrued accounts.

See our guidance with more information about how to prepare receipts and payments accounts:

A guide to charity accounts Receipts and payments accounts guidance Receipts and payments workpack Trustees’ Annual Report guidance Independent examination guidance