Management Accounts

What are Management Accounts?

Management accounts are what they say they are. Accounts which are prepared with the aim of helping managers make important business decisions, whilst having the benefit of full financial information. Many small businesses rely solely on the end of year accounts to understand their financial situation and as a result probably miss a number of opportunities or make bad decisions, simply because they did not have access to accurate, timely, financial information. Management accounts can be produced monthly, quarterly, half-yearly or any other period that is relevant to you. 

Most businesses receive a Profit and Loss and Balance sheet relating to the previous accounting year, from their accountants. The only problem with end of year accounts, is that the first period on those accounts can be 20+ months from the current month, which makes the information less useful as a tool on which to base business decisions. A lot of small businesses only use their end of year accounts to compute their tax liability and have to pay a lot of money for the privilege!  Remember, the information you get out, is only as good as the information you put in, therefore ensure your bookkeeping must be correct or use a certified bookkeeper to be sure!

How can management accounts help improve your business?

• Many business have commercial loans with retails banks, our service means you meet your contractual obligations of providing management accounts on a quarterly basis.

• Having regular reports allows you to examine your cash flow, observe trends and seek additional capital injections (should it be required), based on accurate forecasts.

• By looking at a profit and loss statement you can very quickly see where your business stands in terms of profitability, on a regular basis, giving you the right information to make changes, if necessary.

• Allows you to predict future events based on historical trend information, giving you an edge over your competitors.

• Profit and Loss Statements

• Balance Sheets

• Cash Flow Forecasts

• Debtor Listings

• Creditor Listings

Some of the formats of management accounts we can provide:-