Management Accounts
Boost the performance and efficiency of your business
Management accounts provide an up-to-date picture of business activity essential for driving performance and growth
Produced on a monthly or quarterly basis, management accounts contain information including profit and loss account, a balance sheet, and together with a cash flow forecast are critical in making a business more profitable and more efficient. Not only do management accounts provide an up-to-date picture of how the business is currently performing, it is the basis for projecting future performance.
This financial information is not just of interest to the company for making informed decisions or dealing with opportunities or challenges effectively – external parties including customers, suppliers, banks or the Revenue could require this information.
Informed planning
Management accounts give a clear picture of the activities behind the numbers. Visibility of operating margins, products/services that are selling well/poorly are essential to planning stock levels and staffing. Understanding demand for and profitability of offerings can identify where there is potential for profit growth.
Better control
Being able to see changes in sales over time will highlight issues or opportunities that require attention. In the case of costs – which can go unmanaged – having visibility to how much is being spent and where can help identify areas where savings can be made without impacting operations.
Liquidity
Even a highly profitable business can have cashflow problems. Managing cash flow is essential to ensuring a business survives. A business needs to have accurate and up to date information on what cash resources are available, what the repayment capacity is and what the expected inflows and outgoings are likely to be for the coming periods.