The purpose of Management Accounts is to keep the business’s management team aware of the performance of the business, so that they can take the appropriate steps when needed.
Management Accounts are typically produced monthly and show the business’s performance for that particular period. Predominantly the focus will be on the financial performance, however non-financial information can also be included for a more in depth look at the business.
Smaller business owners should have a reasonable idea of how the business is performing as they have full involvement in day to day activities. However management accounts will enable the owners of slightly larger businesses to keep track of the business’ performance.
What Information Do Management Accounts Contain?
Typically Management Accounts will include:
- Monthly and year to date profit and loss account, including variance against budget and/or prior year.
- Balance sheet.
- Cashflow forecast.
- Performance against Key Performance Indicators (KPI’s).
- Revenue report.
- Project performance reports.
- Debtors report.
- Creditors report.
- Wages and salaries information.
We have vast experience of preparing Management Accounts. Whether you do your own bookkeeping or we do it for you, Management Accounts will provide the information to allow you to make the right decisions for your business.