Digital filing of accounts for charities comes under spotlight
New proposals aimed at making charity data more accessible by offering digital filing of accounts is being debated by the Charity Commission and the Financial Reporting Council (FRC).
At the moment, 70 per cent of companies file digital accounts with Companies House, and now the Commission wants to make it possible for charities to be able to do so as well.
The new system would make it simpler and faster for charities that must file with both Companies House and the Commission. It would also introduce a greater level of transparency.
Head of accountancy services from the Charity Commission, Nigel Davies, explained: "This consultation is an early step and one that should be welcomed by the 35,000 charities that file their accounts with us and Companies House."
"If we can make filing digital accounts possible this will reduce administration for many charities whilst also opening up charity data not just for us but for those with a keen interest in sector trends and data," he added.
The Commission plans to develop templates for accountancy procedures that will be especially helpful to any smaller charities who choose to file digitally.
The consultation comes to an end on 8th December. After that, the taxonomy will be finalised and the Commission will encourage charities to report using the taxonomy by incorporating it into software products.
A draft version of the new Charities taxonomy proposal can be accessed via the Financial Reporting Council's official website.