What are Management Accounts, and Do I Need Them?
Simply put, Management Accounting provides regular, timely financial and statistical information to enable you to make informed business decisions. This is vital for all businesses, as it is used to drive performance, inform strategy, maximise profit and highlight issues.
Depending on the size of your business, Management Accounts, should be prepared on a monthly or quarterly basis, and include a balance sheet with: revenue cut off properly; basic accruals and prepayments adjusted; and ledgers reconciled, as well as: a profit and loss account; analysis of cash flows; and your KPI’s.
This will then enable you to see historic and current trends in your business and identify where your profit is really generated.
It’s important to include a proper balance sheet as without it you simply can’t do certain things: banks will insist on one if you need to borrow money, investors would want to see one if you need to raise money, and if you’re looking to sell your business, without a proper balance sheet you won’t get your businesses true and full value.
Management Accounting Reports are vital to enable your business to succeed and develop. At Franks Accountants, we know that every company is different and that’s why we work closely with our clients to create bespoke reporting solutions. Contact us today to chat about how we can help your business grow and succeed!