If you’re responsible for your charity’s finances, the words “year-end” might make your shoulders tense up a little.

Between keeping funders happy, supporting your beneficiaries and juggling a mostly voluntary team, finding the time and headspace to pull together your annual accounts can feel like a lot.

The good news? With some simple habits and a clear checklist, preparing your charity’s annual accounts doesn’t have to be stressful. It can become just another routine part of running your organisation.

Here’s how to make the process calmer, clearer and much more manageable.

1. Start by knowing what you actually need

Not every charity has to produce the same type of accounts. What you need will depend on:

• Your charity’s legal structure 
• Your annual income
• Whether you need an independent examination or a full audit

Most charities will need to prepare:

• A set of year-end accounts (either receipts and payments or accruals)
• A trustees’ annual report
• An independent examiner’s or auditor’s report, if required

If you’re not sure what applies to you, don’t panic. Check the guidance from the Charity Commission (or OSCR if you’re in Scotland), or ask your bookkeeper or accountant to walk you through the requirements. Getting clear on this early removes a lot of last-minute worry.

2. Get your records in order before year-end

Stress usually appears when the accounts are due and nothing is organised.

To avoid that, make it a habit to keep your records up to date throughout the year:

• Record income and expenditure regularly (weekly or monthly, not once a year)
• Keep copies of invoices, receipts and expense claims
• Save grant offer letters and funding agreements in one place
• Download and file bank statements for all your accounts

Whether you’re using spreadsheets or accounting software, consistency is key. The more complete your records are, the easier it is to pull everything together at the year end.

3. Make sure your bank and bookkeeping match

One of the biggest causes of year-end stress is when the bank balance doesn’t match the accounts.

To keep things smooth:

• Reconcile your bank accounts regularly (at least monthly)
• Check that cash, card reader income and online donations (for example, JustGiving, PayPal, Stripe) are all recorded correctly
• Keep an eye on petty cash and reimbursements to volunteers as these are easy to miss.

If you spot differences, deal with them as you go rather than waiting until the end of the year. Your future self will thank you.

4. Separate your funds and projects clearly

Most charities manage different types of funds, which can get confusing.

In simple terms:

• Unrestricted funds can be used for your general charitable purposes
• Restricted funds must be spent on a specific project or purpose set by the funder
• Designated funds are amounts your trustees have set aside for a particular future use

If you mix everything, preparing your annual accounts and reporting back to funders becomes stressful very quickly.

Instead, set up clear categories for each grant or project. That might mean:

• Separate nominal codes or tracking categories in your software
• Separate columns on your spreadsheet
• Clear notes explaining which income and costs belong to which fund

This makes it much easier to show funders how their money has been used and to prepare the notes for your accounts.

5. Keep good records of decisions, not just numbers

Your annual accounts aren’t just about the figures. They also tell the story of your charity’s year.

That’s where your trustees’ annual report and meeting minutes come in. Throughout the year, keep a record of:

• Key decisions made by the trustees
• Any major projects started or completed
• Changes to your reserves policy or risk management
• Significant events that affected your finances (for example, losing a major funder, unexpected costs, new funding streams)

When it’s time to draft your trustees’ report, you’ll have everything you need rather than trying to remember what happened 10 months ago.

6. Work with your bookkeeper or accountant early

At Bluebells Bookkeeping, we’re here to help you, not to judge you.

The earlier we’re involved in your year-end process, the smoother things will be. A simple way to reduce stress is to agree on a timeline and checklist together, for example:

• An internal deadline for having your records up to date
• The date you’ll send everything over
• What documents and information we need from you

Be honest about any gaps or areas you’re worried about. At Bluebells Bookkeeping, we have seen it all before and would much rather know about issues upfront than discover them at the last minute.

7. Create a simple annual accounts checklist

A lot of stress comes from not knowing whether you’ve forgotten something.

Create a straightforward checklist you can use every year. It might include:

• Bank statements for all accounts covering the full year
• Details of any loans or leases
• A list of fixed assets (for example, equipment, vehicles) and any new purchases or disposals
• Grant offer letters and funding agreements
• Copies of major contracts
• Payroll reports and pension information
• Trustee meeting minutes and key decisions

Assign responsibilities (for example, treasurer, administrator, bookkeeper) and set an internal deadline that’s comfortably ahead of the official filing deadline. That way, you have breathing space if anything unexpected comes up.

8. Build better habits now so next year is easier

Preparing annual accounts will always be an important part of running a charity, but it doesn’t have to be a yearly panic.

A few small habits make a big difference:

• Schedule a short monthly finance check-in
• Keep your bookkeeping up to date rather than saving it all for year-end
• Review your funds and projects regularly so you know where you stand
• Stay in regular contact with your bookkeeper - at Bluebells Bookkeeping, we’re happy to liaise with your Accountant on your behalf.

Think of it as looking after the financial health of your charity in the same way you look after the people you support, with regular care, not one big rush.

Need support with your charity’s annual accounts?

If your charity’s year-end is approaching and you’re already feeling the pressure, you don’t have to handle it alone.

Bluebells Bookkeeping specialises in supporting charities with their day-to-day bookkeeping so that your accountant can prepare your year-end accounts. Hiring Bluebells means you stay compliant, keep your trustees informed and focus on the people and causes that matter most.



If you’d like to make your next year-end calmer and more organised, get in touch to see how we can help.