Management Accounts
Management accounts are Accounts which are prepared with the aim of helping Owner, Partners or Managers make timely and meaningful management business decisions, whilst having the benefit of full financial information.
Different businesses will have different management accounting needs, depending on the business areas that are important to them.
Many small businesses rely solely on the end of year accounts which will comprise a Trading Profit and loss account and balance sheet, which could be a number of months into the next financial year before these are finalised, the production of monthly management accounts could elevate the possibility of missing a number of opportunities or making bad financial decisions.
There is no legal requirement to prepare management accounts, but it is hard to run a business effectively without them. Most companies produce them regularly – e.g. monthly or quarterly but they can also be produced, half-yearly or any other period that is relevant to you.
Management accounts analyse recent historical performance and can assist in elements such as sales, cash flow and profit forecasts. The analysis is usually performed against weekly or monthly forecasts and budgets that have been produced at the start of the year
Our Management accounts packs include:
- Trading Profit and loss statement
- Balance sheet (Full reconciled)
- Debtors Reports
- Creditors Reports
- Cash Flow Forecast (if required)
Also the production of the Management Accounts this will complete your obligation to any bank that the business may have a commercial loan with.
