Management Accounts

Do you know the difference between your Statutory Accounts and your Management Accounts? Whereas your annual accounts provide a financial overview, Management Accounts are all about the detail. Management Accounts provide key, detailed business information that allow you to manage risk, improve performance and truly get under the skin of your business finances.

Your Management Accounts are the key to identifying concerns before they become big problems, and help you to monitor your income, expenses, sales and margins. You can use them to spot opportunities for improved efficiency and reduce the risk of important costs being overlooked and your finances being tripped up as a result.

Producing accurate and meaningful Management Accounts is challenging if you’re not on top of your bookkeeping or are inconsistent in your approach as they rely on having all transactions in, and out, of the business accurately allocated.

Typically, Management Accounts would be reviewed as part of your monthly senior management meeting, although cloud accounting systems give you the complete flexibility to run Management Accounts whenever you choose. Quarterly Management Accounts tie in with your VAT returns and the requirements of MTD.

Your Management Accounts are also vital in keeping your business on track to meet the aims, objectives and growth of your business plan.

Six Steps to Sustainable Business Growth

As a business owner, you need to be driving your business forward, exceeding customer expectations, achieving your goals and helping your team to thrive. Yet all too often, what you actually end up doing is spending hours slaving over your books, tracking down missing invoices and receipts and losing sleep over HMRC and statutory returns. Download our free guide to change that today.