For a number of years, the Financial Reporting Council (FRC) has been overhauling the rules governing statutory accounts to bring them in line with International Financial Reporting Standards (IFRS). For charities, this will mean a comprehensive new structure for the financial statements that is intended to integrate charity accounting more closely into the main set of accounting rules and it will also mean new reporting responsibilities.
Publicly listed companies already follow IFRS, but most other organisations currently use UK accounting standards. The FRC has developed a simplified standard for those entities not currently covered by IFRS, known as Financial Reporting Standard 102 (FRS 102) which will become the new UK Generally Accepted Accounting Practice (GAAP), replacing the enormous current body of FRSs and Statements of Standard Accounting Practice. It is possible for certain entities to adopt the new FRS early. However, charities cannot adopt early.
FRS 102 is based on the International Financial Reporting Standard for Small and Medium-sized Entities (the IFRS for SMEs). Smaller organisations, broadly those with income of less than £6.5m a year, will be able to continue using the existing Financial Reporting Standard for Smaller Entities (FRSSE), updated for the requirement to have regard to the specific Public Benefit Entity requirements of FRS 102 which cover areas such as donations/legacies, concessionary loans and merger arrangements for not-for-profits.
Xero have recently announced that they have made arrangements with Royal Bank of Scotland and NatWest to provide clients with online banking feeds directly in their Xero account. This direct bank feed was previously only available to customers of HSBC or via the add on, Yodlee for other banking customers.
The new direct bank feed for customers of RBS and NatWest will replace any feeds that have been put in place via Yodlee. Xero are happy to offer the choice to customers of RBS and Natwest of either swapping to direct feeds, or continuing with exiting Yodlee feeds.
If a customer of RBS or NatWest you will need to complete a form with the details of any accounts that you would like to receive feeds for. This form must be completed by an authorised signatory of these accounts and sent back to Xero at; 500 Avebury Boulevard, Milton Keynes, MK9 2BE
When your application is processed, you’ll begin receiving the new direct version of the feed instead of the Yodlee version.
Direct feeds from Royal Bank of Scotland and NatWest will cost £3.50 per month each – these will be added to your monthly subscription once your new direct feed begins. But any existing Yodlee feeds you have in place for business current accounts can be switched to direct. And they’ll cost you nothing until 1 August 2015.
If you have any questions please contact us at Xero@broomfield.co.uk and we would be happy to assist you.
We have previously discussed ways you can make your business ready for succession and things you can do to grow your businesses. This article considers how you can combine these and grow your business for success(ion).
If you are serious about growing your business then there is an argument that rather than working on it for all your waking hours, you should work hard for it, but work in it less. If you’re so passionate about the creation and delivery of your product or service that you spend all your time ‘doing it’ then you risk building a business that is totally reliant on you. You will be in control of what happens, but not necessarily in control of whether your plans happen as you may not be able to see the bigger picture. Also, working under that sort of pressure and at your own personal capacity on the day to day workings of the business is likely to limit its growth.
Charity Commission’s latest accounts monitoring review says some charities do not explain adequately how they are dealing with the financial risks
In a report published today, the regulator reveals the results of a probe of charities whose accounts recorded net current liabilities. In other words, current debts are more than the funds available to cover them.
The report found that, of the 98 accounts reviewed, nearly half (42) failed to discuss the issue in their reports, meaning that they missed the opportunity to explain to funders and stakeholders how they were managing the risk. Another accounts monitoring review, of charities with pension scheme deficits, produced a similar finding.
The report found that most of the charities reviewed were funding their liabilities either through deferred income – payments received ahead of the service being provided – or through bank loans and overdrafts. These funding models were each adopted by 28 charities.
On 11 August, a number of new features will be added to Xero. More detail will be published here on the day, but here’s a quick summary of what’s coming:
- Updating the Account Transactions report so you can do things like selecting all or some of your GL accounts for a chosen period. This is part of our move to a new reporting engine. As a first step, it will only be available for Starter and Standard users – but we’ll add support for Premium users soon.
- The depreciation report will provide similar functionality to the aged reports, showing information such as capital gains and depreciation recovered.
- You’ll be able to search invoices, bills and credit notes by transaction amount.
- Bank feeds will have an option that lets others refresh feeds that require Multi Factor Authentication (MFA), ensuring bank transaction data can flow regardless of which user is logged in.
- Remittance advices have been enhanced – again! You’ll be able to add more items to the advice, including a free text field, tax number and address information in the footer.
It’s clear that all small businesses need good cashflow to survive. But many don’t really understand or manage their cashflow. They also don’t have good visibility of their accounts.
If you are a small business owner there may be many reasons that you started your own company. You may have wanted to do something you’re passionate about, have control of your future or be your own boss, but whatever the reason, it’s likely that balancing the books wasn’t high on your list of things to do. Business accounts have a reputation for being complex and time consuming for anyone who isn’t an accountant.
Software that makes doing business a pleasure, can only be a good thing. Making money and seeing your business grow and develop should be fun. If the software is intuitive, it can actually be fun to use.
Recent data suggests that the UK economy is now returning to a more confident period of growth. Businesses could be forgiven for getting a little carried away.
Our advice throughout the downturn has been that owners and managers should base their business and investment decisions on what their own management information is telling them and on conditions in their own particular sector, rather than getting distracted by the macro-economics.
The same advice applies in the upturn. While short-term opportunities can be exploited, growth and innovation must continue to be based on long-term business planning and strategy. Here are some top tips to help businesses stay grounded during the recovery:
The new Sage 50 Accounts software is now available, with some key updates to give you more flexibility in how you access and share your data.
It gives you the best of both worlds, with the benefits of stable, reliable desktop software and the choice to also link your data in the cloud, to give you greater flexibility and security.
- Share your data with your accountant or advisors in real time – no more waiting for files to be transferred
- Automatic backups protect data and make it easy to restore should the need arise
- New mobile apps help you and your teams to understand performance on the go
- Streamlined navigation helps you work more efficiently. And it’s been tested to deal with up to 1.5 million transactions and 20 concurrent users.
- The new release will have an entirely new look and feel, offering you enhanced functionality in a simple and easy to use format.
- The new Sage 50 Accounts enables you to personalise the software to suit the needs of your business.
For more information on the new release or on any other Sage software please contact our team on firstname.lastname@example.org.
The release of the new Sage 50 Accounts package took place on Monday 4th August and, as well as some additional features and functions, there is also a new pricing structure which will result in a substantial increase for like-for-like upgrades, as much as 70% on some of the accounts products.
Don’t miss out on the opportunity to upgrade at the current price before the 8th August!
RRP costs are as follows (excluding any carriage and VAT):
Sage 50 Accounts
Until 5pm on 8th August – £315
From 11th August – £536
Sage 50 Accounts Plus
Until 5pm on 8th August – £455
From 11th August – £819