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ACCOUNTING METHODOLOGIES
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If you are incorporated or your gross annual income exceeds £250,000 in the financial year ending on or after 1st April 2009 you must prepare accruals accounts. Below the threshold, if you are not a charitable company, you can choose to prepare receipts and payments accounts if there is no donor requirement for accruals accounting. Whether your accounts are subject to independent examination or full audit, the reporting facilities and audit trails provided by Paxton Charities Accounting make this task easier. An auditors version of the package is available for those examining multiple sets of accounts that are not their own (please telephone or email for further information).
When you create your database within the Paxton package, you choose if you are to use the accruals or receipts and payments accounting method. This sets the appropriate terminology on-screen and in reports and dictates the program selections available. Hence, when running an accruals database, the facilities include income and expenditure bookings and report, balance sheet and SOFA, whereas when running a receipts and payments database the facilities include receipts and payments bookings and report and a statement of assets and liabilities. Also, for smaller charities adopting the receipts and payments method, facilities are available to convert to accruals accounting as the turnover increases without the need to change to a different accounting package.
The integrated HELP system is fully aware of which accounting methodology you are using and will supply you with appropriate dedicated assistance. Setting up procedures, scripts and, if required, standard charts of accounts are also fully tailored for the appropriate accounting methodology.
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