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From January 2026, the new Charities Statement of Recommended Practice (SORP) will take effect. The draft lands this autumn, leaving finance teams little time to prepare.

For charities, this isn’t just about compliance — it’s about confidence. The SORP 2026 changes are significant, and your finance software will be central to producing reports right, first time.

At Aedon.Accounting, we’ve not only studied the evolving SORP in detail but also advised at sector roundtables. That insight has shaped Aedon.Charities, our platform designed specifically for charity finance teams — and it’s SORP 2026 ready today.

So, what should your finance system be able to do? Here are seven must-have capabilities:

1. Advanced Lease Accounting

The new rules require detailed lease registers, automatic calculation of right-of-use assets and liabilities, and journal entries for depreciation and interest.

2. Sophisticated Revenue Recognition

The five-step model means finance teams must identify performance obligations, allocate prices, and recognise revenue only when obligations are satisfied. Your system should make this seamless, consistent, and auditable.

3. Tiered Annual Report Templates

Reporting requirements now depend on charity size. Built-in templates and checklists tailored to income levels save time and reduce risk.

4. Enhanced Fund Accounting

Clear tracking of restricted, unrestricted, and endowment funds is essential. Your system must allocate income and expenditure accurately and produce regulator-ready reports.

5. Impact and Volunteer Reporting

The SORP expects more visibility around non-financial contributions. Systems should capture volunteer hours, value in-kind support, and highlight KPIs showing your wider impact.

6. Streamlined Support Cost Allocation

Automated, logical allocation of overheads across activities will improve efficiency and strengthen compliance.

7. Robust Audit Trail

Every transaction must be secure, unalterable, and linked to supporting documents. A strong audit trail reduces stress at year-end and builds confidence with auditors.

Future-Proofing Starts Now

These aren’t minor tweaks. They demand new ways of working — and your software needs to lead that change.

Aedon.Charities addresses all seven challenges from day one. More than compliance, it gives finance teams clarity, confidence, and control.

The autumn draft will confirm the fine detail, but the direction is clear: if your system can’t keep up, now is the time to act — before January 2026 forces the issue.

👉 Explore Aedon.Charities today