Essential Year-End Checklist for Small Charities: Prepare for Independent Examination

Feeling overwhelmed by the year-end rush? You don’t have to face it alone. At Genny Jones Training, we offer personalised one-on-one coaching designed to get your accounts ready for Independent Examination. Whether you need help tidying up your spreadsheets, reconciling Xero or QuickBooks, or making sure your Receipts and Payments accounts are solid, I’m here to guide you every step of the way. Book a session today and take the stress out of year-end.

Preparing for Independent Examination can feel daunting, especially for small charities managing limited resources. This checklist breaks down the key steps to help bookkeepers and treasurers get organised, avoid common pitfalls, and present accounts that stand up to scrutiny.

Year-end charity accounts preparation with financial documents and calculator

Bank and cash reconciliation must be corect

Since small charities report on a Receipts and Payments basis, your accounts must match your bank statements exactly as of the year-end date. This is the foundation of your financial accuracy.

• Reconcile all accounts

Check that every transaction in Xero or QuickBooks matches your physical bank statements. This means every deposit, withdrawal, and transfer must be accounted for without exception.

• Petty Cash Count

On the final day of the financial year, physically count your petty cash. Record the total amount and ensure all vouchers or receipts are present and filed correctly.

• Uncleared Checks

Identify any checks written before year-end that have not yet cleared the bank. These will be your adjusting items and must be clearly listed in your records.

By following these steps, you ensure your cash and bank figures are bulletproof and ready for review.

Fund Accounting Requires Clear Separation

One of the trickiest parts of charity accounting is showing how funds are restricted or unrestricted. Fund accounting is essential to demonstrate that money given for specific projects is used accordingly.

• Separate Restricted Funds

Your bank balance should clearly show how much belongs to restricted projects versus general running costs. For example, if you received a grant for a community garden, that money must be tracked separately from donations used for day-to-day expenses.

• Keep Grant Award Letters

Maintain a copy of every grant letter received during the year. These documents prove the restrictions on funds and support your accounting entries.

Clear fund accounting builds trust with donors and regulators by showing transparency in how money is spent.

Prepare a Statement of Assets and Liabilities

Even though small charities don’t prepare a full balance sheet, the Charity Commission requires a list of what you own and owe at year-end.

• Update Fixed Assets

Review your list of equipment, buildings, or vehicles. Add any new purchases over your threshold (for example, £500). This helps track valuable items and their condition.

• Calculate Gift Aid Receivable

Determine the amount of Gift Aid you are owed from HMRC but have not yet received. This figure should be included as an asset.

• List Creditors

Identify any significant bills received before year-end but not yet paid. Examples include the independent examiner’s fee or utility bills. These must be recorded as liabilities.

This statement gives a snapshot of your charity’s financial position and supports transparency.

Documentation and Compliance Are Key

Good documentation helps explain your charity’s activities and financial decisions.

• Draft the Trustee Report

Begin writing the narrative report that explains what your charity has achieved during the year. This report complements your financial statements and provides context for the Independent Examiner.

• Keep Supporting Documents

Organise receipts, invoices, bank statements, and correspondence. Having these ready makes the examination smoother and faster.

• Review Policies

Check that your financial policies, such as reserves and asset management, are up to date and followed.

Strong documentation shows your charity is well-run and accountable.

Do contact us for Independent examination or supporting you to get your records ready for independent examination or audit. info@gennyjonestraining.com