Why should it be done

As mentioned in the previous slide, this process ensures that the end of year accounts are finalised, ready to be handed on, and you can start with clear figures for next year.

Completing this process means you can show anyone who comes and asks that all figures included in the accounts have been reconciled against evidence – verifying that they are correct, with any problems sorted, and including notes where necessary so you will be able to explain any discrepancies or oddities in the accounts.

While it is unlikely you will be audited, it is always a good idea to be prepared for any enquiry into the charity’s accounts.

This also means that you can be certain that the new year you are about to start is starting from an accurate starting point. Any issues that arise will be confined to that years’ worth of accounts rather than having to pay someone to unpick problems over many years. 

Although that is how forensic accountants, including the ones working with MBS, make their living!