Management Accounts Services

Management accounts are financial statements that are custom produced for business owners and managers to help them track a company’s performance.

Management accounts can also be useful for banks, lenders and investors, as well as factoring and invoice discounting companies, accountants, bookkeepers and tax planners.

Keeping on top of a company’s finances can be a time-consuming and complex task, so hiring a bookkeeper or accountant to provide a management accounts service is often the best way forward for many business owners.

Management accounts provide valuable insights into the financial health of a company, helping a business owner make informed decisions based on accurate and up-to-date financial data. As a result, an entrepreneur can make decisions based on actual performance, rather than on gut-feel, guesswork or assumptions.

A good set of management accounts may help identify potential issues before they have chance to become major problems. Providing essential financial information about a business’s resources, whether that’s staff information, stock levels or cashflow can assist with decision making and help to avoid putting the business at risk of over-trading. Management accounts can highlight some early-warning signs, giving business owners the chance to take corrective action before it’s too late.

Regular management accounts can help business owners stay on top of their finances and make any necessary adjustments required, helping to improve cash flow management, whether that’s by reducing expenses or increasing sales.

Management accounts are usually produced monthly or quarterly, to provide the management team with whatever information it will find most beneficial.  Typically, a management accounts service will produce information on some key performance indicators (KPIs), plus include a balance sheet, profit & loss (P&L) statement, income statement and a cash flow statement, along with any other relevant financial information such as productivity levels, stock levels, margins, budgets and tax liabilities.

As well as helping to measure performance improvement and providing future visibility, regularly reviewing the management accounts can also help reduce the chances of malpractice. It’s harder to hide any fraudulent activity when reports are reviewed regularly. Greater time between financial reviews allows more chance of any inaccuracies going undetected.

Management accounts are different from financial accounts, which are produced annually and are required by law. Financial accounts provide a summary of the business’s financial performance over the course of a year, whilst management accounts are less formal, being custom made from information that business owners want to know. Management accounts don’t need to be submitted to HMRC.

Having a bookkeeper or accountant prepare regular management accounts for a business can provide valuable insights to help business owners make informed decisions based on the most up-to-date information. As a result, management accounts can help to boost business growth and provide visibility for the future.

If you’re using a management accounts service, it’s a good idea to talk with your bookkeeper/accountant to see how the management accounts can be customised for you, in order to provide the specific information that will be most useful.

If you’d like any more information about how Accounting Insight’s management accounts service, please contact us.

Our Management Accounts service includes:

• KPI’s
• Regular tailored reports