Management account help you gain further insight into your business and understand your numbers. A well-known quote states “If you don’t know your numbers, you don’t know your business”.
A good set of management accounts will consist of the following items:
A profit and loss statements, cashflow Statement and balance sheet with supporting documents showing items such as the breakdown of agreed debtors and aged creditors and finally a list of important key performance indicators that highlight your business performance.
Benefits Management accounts will bring you:
- You get key financial data presented to you in either Quarterly/ or monthly management account which gives you insight Into your numbers and help you understand how the business is performing and gives you information you otherwise wouldn’t have to make informed decisions.
- Producing the management accounts means that finances are kept more In real time and problems or areas highlighting needing addressing are brought to the business owners attention a lot earlier than if only used year end accounts. I.e., Aged debtors in particular can be of importance here especially if not credit control is in place.
- Keep Track of Spending – and budget and actual costs can also be compared, to see how likely you are to reach any yearly goal/target. This should enhance overall profitability of the company.
- The Key performance indicators can give you insight into what you would have expected to happen to what has happened. This gives you an opportunity to keep on top of results and monitor to change as necessarily to enhance performance next time. With 2023 being deemed a tough year you need to ensure you are on top of your game.
- Business Growth – Essential for you to be able to see the results and understand your numbers. You can ask for specific items to be tracked so you can check out cost of advertising and what you cost per lead is and ensure the adverts are performing well and to tweak as desired.
If this is something that you could benefit from, please get in touch with Sharon on 01572 510012.