Management Accounts are a set of tailor-made or standard financial information which are produced on a monthly or quarterly basis to help you monitor your business’s performance.

What Are
Management Accounts ?

Management Accounts are a set of tailor-made or standard financial information which are produced on a monthly or quarterly basis to help you monitor your business’s performance.

Unlike yearly Financial Statements , that are a mandatory, Management Accounts focus on your business requirements.

They act as a financial report used by business owners and management to provide an insight into the financial health of their business by tracking key performance indicators and for day-to-day and strategic decision making. They are usually produced on a regular monthly, or quarterly basis.

They can also play a vital role in growth planning. If, for example, you need a loan, such reports would provide Banks with valuable insights on key financial data which could act as a guarantee and assurance that you have a strong financial standing, therefore resulting in you winning the loan.

 

Management accounts are key to running and monitoring your small business or organization and highlight a number of key indicators regarding performance, and whether you are achieving your goals within the required time frames.

You Can Access:

  • Staff and management performance
  • Which customers are providing you with the most business?
  • Cashflow & billing
  • Pinpointing your business’s ‘star performers’ and which are under performing.

In summary, this can be a powerful tool to help you run your small business to its full potential and determine your business successes and where you may need to make financial decisions or improvements.

We Support Your Business
At Each Growth Stage

Start-Up Stage

If your business is in ‘early shoots’ or start-up stage, a simple and basic set of reporting would be enough as there probably isn’t much data to evaluate at this stage, analysing and comparing the following will do the job for you:

  • Summary of accounts
  • Profit and Loss
  • Balance Sheet

Covering these areas will give you a good insight into the basics of your business so you can make informed decisions based on your current financial standing. As a result, you will be able to move towards growth much faster. Moreover, when it is time for you to make a big investment, you can change the indicators to be covered in the reporting pack.

Growing Stage

As your business grows and develops this will lead to considering making investments. As a result, you will need to be much aware of your cash flow, which is where management accounts can assist you. You would have to assess your income and outgoing expenditure to have a better understanding of the money you need to pay out and receive.

The reporting may need to move onto the next stage as you will need to include factors that will enable you to have a better understanding of the money being spent. The following will do the job at this stage:

  • Payable
  • Receivables
  • Budget
  • Cash flow

Mature Stage

This is the stage where you need to include more detail which is more specific and complex. The following areas must be included:

  • Key Performance Indicators (KPIs)
  • Shareholders Loans Transactions
  • Accruals and prepayments
  • Segment/departmental analysis
  • Profit & Loss actual vs. last year and/or forecast

Frequently Asked Questions

Management accounts for small businesses typically include a profit and loss account, balance sheet, cash flow statement and a short report. You can put the accounts together yourself, or more realistically, an accountant can do it for you.

Management accounts form a financial report used by business owners and management for day-to-day and strategic decision making. They are produced, usually, on a monthly or quarterly basis, and provide insight into the current financial health of a business by tracking various key performance indicators

The primary purpose of management accounting is to analyse information. They determine problematic areas and develop ways to correct them. They use the information to develop ways of increasing the company’s profit.

The primary purpose of management accounting is to analyse information. They determine problematic areas and develop ways to correct them. They use the information to develop ways of increasing the company’s profit.

Financial accounting is focused on creating financial statements to be shared internal and external stakeholders and the public. Managerial accounting focuses on operational reporting to be shared within a company.