OSCR has published a new ‘lessons learned’ report highlighting the importance of good financial record keeping for charities.

The report draws on findings from our regulatory work and outlines common issues that can arise when accounting records are incomplete, inaccessible or not maintained in a way that reflects charity accounting requirements.

Keeping accurate and up-to-date financial records is a legal requirement for Scottish charities and helps trustees understand their charity's financial position, oversee the use of funds and demonstrate that charitable resources have been properly managed.

The report highlights several key lessons for charities, including:

• Charities should keep accounting records that are appropriate to the size and complexity of the charity and its transactions
• Keep the charity’s accounting records up to date
• Do not just rely on accounting software for record keeping
• Ensure responsibility for the charity’s finances does not rest with one person

By maintaining accurate and up-to-date accounting records, trustees can better identify risks, make informed decisions, meet their legal duties and ensure that charitable funds are used for their intended purposes.

The full report is available to read here: Learning from OSCR's inquiries: Good financial record keeping for charities