SORP – Why the right accounting software is key

In its essence SORP is a set of accounting and procedural principles that many Not-For-Profit organisations need to adopt. It is designed to report on a far greater level of information and disclosure to provide transparency and accountability. There are more requirements for the directors’ report, more analysis of income and expenditure, and a focus on funds position, accountability, and trustee obligations.

SORP is the biggest accounting and procedural change to have been handed down to charitable organisations for some time and despite what some software houses might try to pretend, there is no simple “one-size-fits-all “solution……. Irish charities are not that similar, nor that standard. They are complex and diverse in their operations. They need accounting software capable of being tailored for their unique needs and future evolution.

Each and every charity is unique in their stated activities, trustee and stakeholder involvement, how they operate, where their funding comes from, and how said funding is used, managed and reported. As a result, each organisation needs to fully understand their own unique and disparate SORP obligations and must then establish the correct rules and policies inside and outside of their accounting system to help facilitate these requirements, whilst at the same time ensuring their internal day to day operational needs are still serviced.

SORP compliance is not so much an item, software or service that is bought or a box that is ticked. It is a culture and process around activity, funds, expenses, procurement, budgeting, and accountability that permeates throughout the entire organisation and most critically throughout their financial systems and auditable activities, processes, reports, and financial data. Most certainly you do need considered, versatile, and robust accounting software and procedures to cater for this evolving need.

Historically Exchequer clients here and in the UK have benefitted from a range of reporting tools, deep analysis ability, secure and auditable expense and procurement approval workflows, and a confidence that allowed clients to evolve with their ever changing internal and external reporting, budgeting, and purchase approval needs.
Many Irish organisations were for some time been working towards the UK SORP policies long in advance of SORP being introduced in Ireland and using the same Exchequer modules and reporting tools that have been used by many UK charities to be fully compliant to their UK SORP requirement since 2015.

Indeed, when SORP was first introduced into Ireland, over 90% of our existing Irish charities (with extensive and diverse local and international reporting requirements) had already long exceeded the complexities of the intended SORP financial reporting within their Exchequer suite, and with their own Exchequer knowledge and reporting prowess.

We have been working with Irish charities to facilitate their diverse needs since 1998. We can understand your financial complexities, from SORP to SOFA, to designated & restricted funding and complicated accruals. Our workflow approvals ensure all expenditure is approved in advance and fully auditable. Our solutions are designed to support and protect your organisation, and our dedicated colleagues are long experienced with your needs.

To find out more please visit here or call us directly. We would love to find out more about your needs.

Exchequer Business Management Systems

Alan Connor

Commercial Director