It's hard to predict the future in business, but our management accounting service goes a long way towards helping
Management accounts are the first step to truly controlling your finances and are a vital tool to removing risk and help inform business decision making.
Without accurate data, it is impossible to produce management accounts. As a result, management accounts makes sure the finance team is always on its toes and supplying the latest information to produce detailed and accurate management accounts. You'll be able to spot areas for improvement and keep track of your business performance over time.
Management accounts for complete financial insight for your business
Our management accounts aren't just a profit and loss statement every month. Instead we carry comprehensive and relevant ratio analysis and comparisons so you can see:
Year on year movement to each each month
How total sales are increasing or decreasing
The change in wages and how they're expected to increase over time
Changes to gross profit
See which services are the most profitable
Management accounts are a tool that managers and owners use to keep track of how their business is doing. They report on the basic figures that already exist within your accounting system already; the preparation of management accounts turns these raw figures into usable ratios and trends over an accurate trading period.
It's easy for a manager to think "I know how much I sold and my bank account is higher than what it was so I don't need to prepare any management accounts". However, processing the raw data is the only real way of confirming that your bank account is higher because of good results rather than coincidence. It allows managers to show results in context, relative to past periods or seasonal trends and explain the state of the business beyond simply "Doing well".
Management accounts can turn a guess into an strategic forecast. Whilst knowing that your business is profitable is fine, its important to understand why its profitable and what needs to be done to carry on being successful. A business selling two products might consistently make a profit each month, but a product-by-product performance review might show that one product is costing the business money or a star product isn't being exploited in the way it should.
An advantage of management accounts is that it can be tailored for each individual business. Reporting sales income when a business is on a fixed contract might not be as useful as the cost of goods sold might be. Therefore, management accounts are most valuable when they are relevant. Accountants can lend a hand here as they'll typically process much of the data needed anyway and are thus well placed to produce the most accurate management accounts with appropriate adjustments.
Controlling your finances with detailed management accounts to inform business improvements can have a surprisingly large impact on a company's profitability.
Small percentage differences here and there mount up and can increase a company's bottom line significantly