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 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 your business?

• Dealing with any month end or quarter end adjustments to achieve more accurate figures for each period.
• Providing you with Management Accounts to help you assess your businesses performance. These include Profit and Loss Account and Balance Sheet.
• Plus any other reports or charts that might help you with the running of your business,
  I.e. Top customer each month, top products etc.
• Profit & Loss Statements
• Balance Sheets
• Creditors & Debtors