Management accounts
Management Accounts are an essential tool used by successful business owners to help them make informed and effective performance-based decisions and allow them to plan for future growth and their tax liabilities.
Get StartedWhat are management accounts?
There is no legal obligation to prepare management accounts, but successful, profitable businesses would not be without them. Usually produced on a monthly or quarterly basis, they look at the short term historical performance and compare that to budgets and forecasts. More importantly the management information is used to help plan for the future with sales, cash flow, and profit forecasts.
A key objective of management accounts is to provide clear and correct information to highlight key performing areas of the business, but there are other reasons to use them including:
- Understanding the behaviour and overall performance of the business
- Giving the business direction with sound advice and guidance
- Allow creation of a cash flow forecast
- Reveal margins, costs, and break-even points to make appropriate financial decisions
- Identifying non or under-performing parts of the business
How we can help you
Jan McDermott Chartered Accountants specialise in preparing and analysing Management Accounts for your business. If you need help creating and monitoring your management accounts system, our friendly team of professional accountants are on hand to offer key advice and guidance. This means you can have complete peace of mind that your management accounts are being prepared and regularly reported, so you can use that data to improve and grow your business to be as successful as possible.
Get in touch with our team today to take control of your management accounts.
Frequently Asked Questions
Statutory accounts look back at the historic position of the business and are mainly prepared to meet your legal obligations and calculate your corporation tax.
Management accounts look beyond the numbers to highlight key insights into your business performance and are there to help you plan for the future.
Management accounts are very much bespoke to your business but will generally include the following:
- KPIs
- Profit and loss account
- Cash flow
- Balance sheet
- Aged Payables
- Aged Receivables
We are specialists in Xero accounting software and are able to set up your system, train you and your team to produce meaningful management accounts.