What are Management
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
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 businesses only use their end of year accounts
to compute their tax liability and have to pay a lot of money
for the privilege!
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,
• Allows you to predict future events based on historical
trend information, giving you an edge over your competitors.
Some of the formats of management
accounts we can provide:-
• Profit and Loss Statements
• Balance Sheets
• Cash Flow Forecasts
• Debtor Listings
• Creditor Listings
Upon agreement we will consult with you as to what management
information would add value to your business and allow you to
make the right business decisions.