All charities must prepare accounts and make them available on request. The duty to file accounts with the Charity Commission applies to all registered charities whose gross income exceeds £25,000.

If you need to know when you must prepare an annual report and accounts, or the financial thresholds for having the accounts externally audited or examined, or the filing of your report and accounts with the Charity Commission, please refer to:

• Charity Reporting and Accounting: The essentials April 2009 (CC15b). This covers financial years ending on or after 1 April 2009.

Alternatively, our guidance The Reporting and Accounting Framework for Charities sets out in detail the framework for accounting and scrutiny for all accounting periods from financial years commencing 1st March 1996 up to the present.

About accounting methods

Charity accounts may be prepared either on the receipts and payments basis or the accruals basis, depending on the charity's income and whether or not it has been set up as a company.

Non-company charities with gross annual income of £250,000 or less may use the simpler receipts and payments basis. This consists of an account summarising all money received and paid out by the charity in the financial year, and a statement giving details of its assets and liabilities at the end of the year. Charitable companies are not allowed by company law to adopt this method.

Along with all charitable companies, non-company charities with gross annual income of more than £250,000 must use the accruals basis. This consists of a balance sheet, a statement of financial activities and explanatory notes. These accounts are prepared in accordance with the SORP and should show a 'true and fair view'.