It’s one thing to have to take care of finances in just about any startup company, and it’s another thing entirely to have to do so for a charity. Charities tend to have a different take on finances thanks to an entirely different foundation, which can throw many aspiring charity owners off – especially if they were expecting it to be similar to the way other companies operate.
What’s worse is the fact that many small charities don’t really have the resources to hire a dedicated team. This begs the question, how do you navigate and successfully manage your charity’s finances without being overwhelmed?
The most logical step is to hire a skilled charity accountant
For those who don’t really have the resources to spare, this might seem like a counterproductive first step. However, if you can spare for even just one individual – say, a charity accountant – it would definitely be best to have one on your employ as early as possible. There’s a very good reason why Central London accountants are in such high demand, and that’s because of their ability to manage even the most difficult financial situations. If you can get the help of a skilled charity accountant on your side at the beginning, it will save you time, money and so much more.
When it comes to charity finances, focus on taxes
The way that charities handle taxes can be quite different compared to the way it’s handled by other companies, particularly when it comes to a VAT. It needs to be a priority because if you get it wrong it could be a very expensive mistake to make. If you have the opportunity to take professional advice from anyone do so as early as you possibly can. All income streams are possibly subject to VAT treatment, which is why you need to be aware of your income streams are being treated right.
Focus on keeping things simple
The last thing you need when it comes to managing finances is to end up making things too complicated to handle. You need to be on top of the situation, and that takes a good deal of dedication to make it work. With that dedication, you can focus on keeping things simple for your charity. This means keeping track of your charity’s records in a simple spreadsheet and ensuring that it’s always up to date. Your charity accountant will be able to do this in their sleep, which is why their help is invaluable.
To conclude, remember that there’s a wealth of knowledge on the Charity Commission website regarding how taxes and everything else is affected. Take advantage of any information that you can gather, and don’t be afraid to ask questions. A charity accountant will no doubt make your life much easier in this aspect.