Useful numbers. Better decisions

Practical starting points for business owners, directors and trustees.

Acquisition integration: establish cash visibility, consistent reporting and clear responsibilities.

Cash forecasting: see the weeks ahead and the assumptions that matter.

Board reporting: connect performance, risk and decisions.

Ask Paul about a template, finance diagnostic or board working session.

The technical updates below reflect the 2026/27 tax year and the position at 14 August 2026. Confirm the current rules before acting.

Considering an R&D relief claim? Speak to Awake about reviewing your circumstances and the evidence needed before proceeding.

Neither structure is automatically better. The right answer depends on who should control the organisation, how profits will be used, what funders expect and whether the founders may eventually sell or attract investment.

A CIC is still a company—not a charity—and does not automatically receive charitable tax reliefs. A charity or CIO has a different legal purpose, trustee duties, tax treatment and regulatory framework. Choosing the structure before thinking through funding, control and exit can be expensive to unwind later.

SORP 2026

The new Charities SORP applies to reporting periods starting on or after 1 January 2026 for charities preparing accruals accounts.

Key changes include:

• three reporting tiers—up to £500,000 income; £500,000 to £15 million; and over £15 million;

• new accounting requirements and examples for income and leases;

• refreshed Trustees' Annual Report guidance covering reserves, future plans, impact and ESG;

• simplified reporting for social investments; and

• clearer treatment of provisions and contingencies.

ACCOUNTING THRESHOLDS

Changes are expected from 30 September 2026 for accounting years ending on or after that date. The proposed new thresholds include:

• independent examination from income over £40,000 rather than £25,000;

• a professionally qualified independent examiner from income over £500,000 rather than £250,000; and

• receipts-and-payments accounts available to non-company charities below £500,000 income rather than £250,000.

CONFLICTS OF INTEREST

The Charity Commission refreshed its conflicts guidance in April 2026. Trustees should identify conflicts early, record them, exclude affected people where appropriate and show clearly why each decision is in the charity's best interests.

WHAT TRUSTEES SHOULD DO NOW

• Confirm which SORP tier and reporting threshold will apply.

• Update the year-end timetable and trustee-report template.

• Review reserves, going concern, leases and income recognition.

• Refresh the conflicts register and decision-making process.

• Make sure the board pack links financial performance to impact, risk and future sustainability.

CASH FORECASTING

A rolling 13-week forecast shows when cash is expected to arrive and leave. Update it weekly and test a realistic downside.

BOARD REPORTING

Show cash, performance against plan, the latest outlook and decisions requiring attention. Charities should also show funds and reserves.

FINANCE DIAGNOSTIC

Slow reporting, competing spreadsheets, unexplained margins and cash surprises are signs to investigate.

ACQUISITION INTEGRATION

Start with cash, opening balances, reporting and clear ownership. Agree priorities for the first 100 days.

RESERVES AND SUSTAINABILITY

Link your reserves policy to your organisation’s risks and commitments.

Need help applying these ideas? Talk to us.