Enter your idea

Thanks Elaine, this looks really helpful.

I have taken a different approach and, using the Xero report writing functionality, have been able to prepare a SoFA directly in Xero. However it is also essential to structure the data and tracking categories effectively.

I agree that only two tracking categories are not really enough for charities, but if you use prefixes in each (eg UF, RF for funds and similarly for activities) then you can (sort of) get 4 tracking categories which make reporting easier. I have attached an example of the data structure and sample reports. All the figures are based on a fictitious charity (I use this for training).

I have asked Xero several times about having a charity chart of accounts, but it seems a low priority.

Hi,
I think I've cracked it. I have created a detailed DSoFA that I drop into Excel and then use meta data to group codes into our reported DSoFA summarised into our SoFA. The bottom line is checked against Xero's Current Earnings to ensure nothing's been missed.

At the end of the year, codes in the unused 100 range of codes are used to account for movements into/out of/between funds with an opposite balance that matches Current Earnings.

The Balance Sheet handles Funds through specific equity codes receiving the transactions in the 100 range. there is a balancing entry that matches retained earnings.

I have attached an file with a downloaded DSoFA, a Balance Sheet and just because I have it a three year management account report.

We use tracking to control projects and to allow us to report on our activities for grant bids.

Happy to talk further.

We have numerous charity clients who use the Funds function in Sage and the lack of similar functionality in Xero is preventing those clients from migrating softwares. The workaround for using tracking categories is not ideal and please bring in additional functionality which would work for charities.

Please add SORP accounts! I have lots of charity clients and current pay another accounting software provider to prepare SORP accounts.

It would be helpful to be able to claim gift aid with an integration to HMRC, other packages offer this ability. ANd to have SOPR accounting built in woudl be a ral plus there are so many charities like us and Xero really doesn't cater for this sector

A real shortfall in Xero is that charity accounting is not provided for at all. So many charities use Xero, and there really should be SORP accounting report layouts (SoFA particularly) and charity tailored CoA. Xero, please consider this.

Would be good to have a charity mode, that came with charity settings, e.g. charity tailored CoA, and charity specific reporting, e.g. Statement of Financial Activities.

As a Charity we still have to pay an accountant to convert our xero reports into "Scout" and "charity Commission" speak
https://www.scouts.org.uk/volunteers/running-things-locally/finances-and-insurance/accounting-and-reporting/

I think this could be helpful, but I use tracking to manage it so far - would prefer to see a global VAT control as we are VAT exempt and don't need to manage it

Nigel, If it was within Xero rather than having to do it manually outside of the system that would be much better. Xero has the 'management report' for companies, it's just not useful for non-for-profits which is a shame.

There are over 160,000 charities in just England and Wales excluding Northern Ireland and Scotland. The sector is valued at £20 billion.

The regulation are https://www.gov.uk/government/publications/charity-reporting-and-accounting-the-essentials-cc15b/charity-reporting-and-accounting-the-essentials

An example is attached.

It would be great to have compliant financial statements for Not For Profits such as Simplified Disclosures. Many other software providers have these such as APS and Sage etc.

Ability to set up a Xero org for a specific charity organisation.

Purpose: Because charity organisations work differently (e.g. restricted/unrestricted transactions).