If you're the treasurer of a small charity, a village hall, a PTA or a community group, "receipts and payments" is probably the simplest way to do the year-end accounts. It's money in, money out, and the bank balance at each end. This guide covers who can use it in England and Wales, what the Charity Commission's layout looks like, and how to build it from bank statements.
Who can use receipts and payments accounts
The Charity Commission's threshold changes at a glance page (updated 16 September 2026) sets out the limits for England and Wales:
| Financial years ending before 30 September 2026 | Ending on or after 30 September 2026 | |
|---|---|---|
| Unincorporated charities and CIOs may use receipts and payments accounts | income £250,000 or less | income £500,000 or less |
| Accruals accounts required | income over £250,000 | income over £500,000 |
Charitable companies can't use them. GOV.UK says: "All charitable companies must prepare accruals accounts."
Note that the Commission's CC16 template page still describes the template as for income of £250,000 or less. It was published before the change, so check the at-a-glance table for your year.
Scotland (OSCR) and Northern Ireland have their own rules. Many non-charity clubs and societies use the same format because it's clear, but check your own constitution.
What the CC16 layout looks like
The Commission's receipts and payments template (CC16) has two main parts.
Section A: receipts and payments. The main parts are:
- A1 Receipts: for example donations, legacies and grants; fundraising events; members' subscriptions; hire of hall and equipment; interest on deposit account.
- A2 Asset and investment sales
- A3 Payments: for example costs of charitable activities; rent / hire of rooms; repairs and maintenance; insurance; light and heating; printing, postage, stationery and computer supplies; bank interest and charges.
- A4 Asset and investment purchases
- A5 Transfers between funds
- A6 Cash funds last year end, followed by cash funds this year end
Each line is split across columns for unrestricted, restricted and endowment funds. The headings come from the Commission's notes (CC16b). Use the ones that fit your charity.
Section B: statement of assets and liabilities. This covers cash at bank and in hand, plus other assets and liabilities, such as money owed to you or by you.
Restricted funds
Money given for a specific purpose, such as a grant for a new roof, is a restricted fund. It goes in its own column, and the accounts should show it being spent on that purpose. If more has gone out of a restricted fund than came in this year, check whether money was carried in from last year, or whether something is in the wrong column.
Building it from bank statements
For most small groups, the bank statements are the main record. A workable routine:
- Gather every statement for the financial year, for every account (current, deposit, any savings account).
- Give each line a heading (A1–A4) and a fund (unrestricted, restricted or endowment).
- Treat transfers between your own accounts as transfers. They're neither receipts nor payments, and they should cancel out across the accounts.
- Total each heading by fund.
- Do the bank check: opening balances + receipts − payments = closing balances. If it doesn't agree, a line is missing, misread or counted twice.
Worked example (round numbers)
A community garden has one current account. The opening balance is £2,000.
| Unrestricted | Restricted (polytunnel grant) | Total | |
|---|---|---|---|
| A1 Receipts: donations and grants | £800 | £1,500 | £2,300 |
| A1 Receipts: subscriptions | £600 | £600 | |
| A3 Payments: costs of activities | (£500) | (£1,200) | (£1,700) |
| A3 Payments: insurance | (£300) | (£300) | |
| Net receipts/(payments) | £600 | £300 | £900 |
Bank check: £2,000 + £900 = £2,900 closing balance. If the last statement of the year says £2,900, it agrees. The polytunnel fund has £300 left to carry forward.
Who approves the accounts
The trustees (or the committee) approve them. Whether they also need an independent examination depends on your income and your governing document. See Independent examination thresholds from 30 September 2026.
FAQ
Do receipts and payments accounts include money people owe us? Not in Section A, which is cash only. Section B is where you list other assets and liabilities.
Can we pick our own headings? The CC16b notes give the standard headings. Use those that fit and keep them consistent year to year.
Do we need the official spreadsheet? The Commission provides CC16 as a template. Your accounts need the right content. Check the Commission's guidance for what must be included.
Drafting it from your statements
treasurersheet reads a year of bank statements (PDFs or photos). It suggests a CC16 heading and fund for each line, which you can change. It nets out transfers between your accounts and runs the bank check. Then it gives you Section A and cash at bank as a spreadsheet, with every transaction listed. Your first statement is free. The trustees still check and approve the accounts.
This isn't accounting or legal advice. Check the Charity Commission's guidance on charity accounts or an independent examiner for your charity, and check the figures before you submit or file anything.