We are a very small CIC (annual turnover circa £10k). All income is from charitable or corporate donations and the majority of funding is project specific. We don't make any profits as all income is accounted for in each project. Last year (year end October 31) we had money coming in for a two year project which has been spent in the following year. So, at year end there was money in the bank (approx £1.5k) which has subsequently been spent on that specific project. My question is, when completing my micro entity Accounts for HMRC, where does that money go? Can I show that it is not profit as it is spent in the following accounting year? Is it an asset which is set off against a creditor? Is it deferred income?
Many thanks for any advice.