Whether you’re a start-up or scaling up your business to the next level you will need to know the numbers, monitor cashflow and drive performance.
Producing regular management accounts is an integral part of operating any successful business. Ideally produced monthly, management accounts apprise your businesses performance by identify and measuring areas of the business that need attention or are preforming well. This is done by detailing the current financial year to date figures and comparing them against a budget and/or against the preceding year figures.
Management accounts should contain information to allow you to make informed day-to-day and strategic decisions such as:
- Controlling costs
- Improving margins
- Boosting cashflow
- Better credit management
Unlike financial reports, management accounting are not mandatory and are for internal use only so they don’t have to follow UK GAAP or FRS guidelines, therefore we recommend that management reporting should always be focused on segments of your business, by segmenting you can get into the details and really analyse your businesses Key Performance Indicators (KPIs).
The Shires Accountants team will be pleased to discuss any questions you may have concerning management accounting, simply call us on 01270 820273 or complete the contact form below and we will get back to you.