Small charities often rely on volunteer treasurers to handle finances. It’s practical, it keeps costs down, and for many organisations it works well enough.

But as the charity grows or when facing new compliance demands, funding reviews or stretched resources, trustees start asking whether this model still fits.

The question isn’t always straightforward. Every charity’s trustees are collectively responsible for finances under UK law, regardless of who actually maintains the books.

So when does professional support become necessary and when can a capable treasurer continue to manage?

This guide will help you work through that decision with clarity.

What’s the Difference Between a Charity Treasurer and an Accountant?

A charity treasurer is typically a volunteer trustee who leads on financial oversight.

In smaller charities, the treasurer often handles everything – tracking income and expenditure, managing banking, preparing reports – because there’s no paid financial staff.

Many small charities operate entirely with volunteers, so the treasurer might effectively act as bookkeeper and finance manager combined.

In larger charities, a treasurer works alongside professional finance staff or a finance committee, focusing more on oversight than on entering transactions. They set strategy, approve budgets and ensure proper controls are in place.

Another key difference: treasurers aren’t required to have accounting qualifications or formal finance training. Many are chosen for being “good with numbers” or simply as willing volunteers.

A charity accountant, by contrast, is usually a qualified professional with training in accounting, ideally with specialised knowledge of charity finance regulations.

This specialist knowledge can prove critical, which leads us to compliance.

What Are Your Charity’s Legal Accounting Requirements?

One of the first considerations is what the law actually requires for your charity’s accounts. In the UK, charities must maintain proper accounting records and prepare annual accounts by law. Certain thresholds trigger mandatory external scrutiny:

• Below £25,000: No external review legally required, (unless your governing document demands one). A competent treasurer can prepare accounts on a simple receipts-and-payments basis.
• £25,000–£250,000: Accounts must be externally examined, but not necessarily by a paid accountant if you have a suitable volunteer. The Charity Commission suggests that for small charities, an appropriate independent examiner could be a local bank manager or someone with finance experience.
• Above £250,000: The examiner must have an accounting qualification. Accrual accounts and compliance with the Charities SORP are required.
• Above £1,000,000: Statutory audit by a registered auditor is required by law.

All registered charities must submit annual returns and accounts to the Charity Commission within 10 months of the year-end, and charitable companies have to file with Companies House as well. Missing these deadlines can lead to penalties or regulatory action.

If you’re approaching a level where an external examination or audit is mandated, that’s a clear sign that professional accounting help will be needed.

7 Ways a Charity Accountant Strengthens Your Organisation

Engaging a charity accountant, (whether as an external firm or a part-time staff member) can bring several concrete advantages:

1. Compliance and Accuracy

Professionals stay up to date on charity law and reporting standards. They ensure your accounts meet Charity Commission requirements and SORP, avoiding non-compliance issues. A specialist will properly account for restricted funds and prepare an accurate trustees’ annual report, reducing the risk of restatements or regulatory queries.

2. Audit-Ready Records

A good accountant keeps your books “audit-ready“. If the Commission, funders, or an auditor want to examine them, you won’t be scrambling. This readiness not only aids audits but also improves internal decision-making, as you’ll have reliable figures throughout the year.

3. Specialist Knowledge and Advice

A charity-experienced accountant brings knowledge of nuances that general volunteers may not have: understanding of the Charities Act, SORP, charity VAT rules, Gift Aid procedures and more.

They can advise on best financial practices, such as how to allocate costs between fundraising and charitable activities or when to register for VAT. Essentially, you gain a consultant who can answer “Can we do this?” and ensure you do it correctly.

4. Time Saved and Focus on Mission

By letting a professional handle the nitty-gritty, your team can focus on what they do best. Bookkeeping and preparing statutory accounts are time-consuming; outsourcing these tasks gives you the freedom to put that time back into your mission.

5. Improved Internal Controls

Bringing in an outside accountant or accounting service often inherently creates better checks and balances. If an external bookkeeper manages the ledger, the treasurer can more easily review their work objectively. An accountant can also recommend stronger financial controls and policies, drawing on best practices from across the sector.

6. Better Financial Reporting and Planning

Accountants can produce professional financial reports, (budgets, cash flow forecasts, management accounts) that a volunteer might not have the tools or expertise to prepare. These reports help the board see the financial situation clearly and make better decisions.

They can also tailor reports for funders or annual meetings in a way that’s clear and compliant. If you hire a charity-specialist accountant, they’ll ensure reports highlight what matters, such as separately showing restricted fund balances or key ratios, so that trustees get meaningful insight rather than just raw data.

7. Peace of Mind and Support for the Treasurer

Rather than replacing the treasurer, an accountant can be seen as supporting them. Many treasurers, especially those not from an accounting background, feel more confident knowing a professional has double-checked the figures.

It can also make the treasurer role more attractive to volunteers if they know they won’t be alone in handling everything. Essentially, you’re giving your volunteer team a safety net.

When Can a Volunteer Treasurer Handle Your Charity’s Finances?

Despite all the arguments for accountants, there are plenty of small charities that run successfully with only a volunteer treasurer and no paid accounting staff. This can work well under the right circumstances.

Very Small Scale

If your income and expenditure are modest, (well under the £25k external review threshold) and transactions are few, bookkeeping can be straightforward. Many tiny charities use a simple spreadsheet. The accounts can be done on a cash, (receipts and payments) basis, which is easier to prepare.

In these cases, as long as the treasurer is diligent and organised, they may not need professional help beyond perhaps someone to double-check the annual figures informally.

Trustee Expertise

If one of your trustees, possibly the treasurer, is a qualified or experienced accountant themselves, you might have the needed skills in-house. For example, a retired accountant who volunteers as treasurer could likely maintain proper accrual accounts and ensure compliance.

Low Complexity Operations

Your charity might have a simple funding structure – one unrestricted grant or just member donations, no special reporting requirements, no trading or foreign currency.

If accounting transactions are routine and repetitive, it may be reasonable for a volunteer to handle them using off-the-shelf accounting software, (or even just a basic ledger).

Good External Support in Place

Perhaps you’re not hiring an accountant, but you have access to some external support. Some areas have community accounting services or volunteer networks that help charities. You might know a friendly accountant willing to occasionally look over the books.

The Charity Commission explicitly notes that for small charities, an independent examiner could be an unpaid knowledgeable person, not necessarily from an accountancy firm.

Resources like the Association of Charity Independent Examiners, (ACIE) can help find low-cost examiners. If you tap into such resources, you might manage without a paid accountant for a while.

Strong Internal Commitment to Learn

Some treasurers really educate themselves, using guidance from the Charity Commission and NCVO’s financial management resources. There are handbooks and training modules for trustees on finance. If your treasurer is actively using these, understands their limits, and the charity remains small, you might get by.

Safeguards to Put in Place

If you choose to go without a professional accountant, it’s wise to put some guardrails in place:

• Have an independent review of the accounts, even if not required. Ask an accountant acquaintance to volunteer a few hours to check your annual accounts. A fresh pair of eyes can catch issues early.
• Make use of free guidance: The Charity Commission publishes detailed guidance on charity finances, (CC15, CC8). Sector bodies like NCVO and the Charity Finance Group have templates and advice. These won’t replace an accountant’s advice, but they can help your treasurer follow best practices.
• Ensure the board stays engaged in finances: If you don’t have an external accountant, it’s even more important that multiple trustees periodically look at bank statements, ask questions about anomalies and support the treasurer. This spreads the knowledge and prevents over-reliance on one person.

Getting the Right Financial Support for Your Charity

There’s no universal answer here. Some treasurers thrive in the role and keep things running smoothly for years. Others are quietly drowning, spending evenings reconciling transactions when they should be thinking about strategy – or simply resting.

The question isn’t whether professional accounting is “better” in the abstract. It’s whether your current setup is actually working – for your treasurer, for your board, and for the charity itself.

If you’re approaching a statutory threshold, if your treasurer is stretched thin, or if you’re making decisions without reliable numbers, those are signals worth paying attention to.

Not sure where your charity stands? We help trustees assess their financial setup and implement robust accounting practices tailored to your organisation’s needs. Book a discovery call with Charity Accounting Partners to discuss your specific situation and find out how we can support your mission.