Fund Accounting Videos
As well as creating brilliant fund accounting software, we’ve created a number of Fund Accounting training videos, to help those working in charity finance, get to grips with some of the key concepts of fund accounting.
The videos cover key topics, from the basics of what Fund Accounting is, to the difference between creating Receipts and Payments accounts and Accruals-based accounts, as well as common pitfalls and how to avoid them.
Introduction to Fund Types
This Fund Accounting for charities video explains the different types of funds (unrestricted, designated, and restricted), and when each of these should be used.
The video highlights common mistakes to avoid, why the wording of donor funding appeals is important, and the need for regular reviews to ensure money is accounted for correctly.
Accruals vs Cash Accounting
This Fund Accounting for charities video explains the differences between cash accounting (also known as receipts and payments accounting) and accruals accounting for charities.
The video and covers the key income and asset thresholds that trigger different reporting requirements for charity registration, creating year end accounts, for independent examination, and for charity audit.
Getting to Grips with Related Parties
This Fund Accounting for charities video covers what related party transactions are, and highlights the need for transparency, accountability, and managing conflicts of interest.
The video covers the requirements for related party transactions disclosures when creating charity accounts, but also the need for greater awareness of conflicts of interest, and how a conflicts of interest policy can help with this.
Accounting for Fixed Assets Correctly
This Fund Accounting for charities video explains how charities should account for fixed assets under accruals accounting.
The video covers when purchases should be classified as fixed assets, how capitalisation and depreciation work and how they affect the balance sheet. It covers some of the complexities that can arise, when to seek professional advice, and the need for clear accounting policies.
Understanding Income Recognition
This Fund Accounting for charities video covers how income recognition in accruals accounting works, emphasizing that income is recognized not when cash is received, but when the three key criteria of entitlement, probability, and measurability are met.
The video highlights the complexities of multi-year grants, the requirement for donated goods and services to be recorded as income, and when to seek professional advice to ensure SORP compliance.
Navigating Debtors & Creditors
This Fund Accounting for charities video explains how charities that create accounts on an accruals basis should navigate debtors and creditors.
The video covers accrued income and expenditure, deferred income and expenditure, and how these adjustments are needed to ensure that income and expenditure are reported within the correct financial year within a charity accounts.
Common Pitfalls when creating Year End Accounts
This Fund Accounting for charities video outlines common pitfalls in charity accounting, including confusion around fund classifications, to uncertainty as to when fund transfers should be used, and errors with income recognition.
The video also covers, how to handle fixed assets, related party disclosures, the trustees' written report, and the need for charities to seek guidance when unsure.