Management Accounts

What are Management Accounts?

Regular Management Accounts provide real time financial information that empower you to make actionable decisions.

Management Accounts are historical monthly accounts, that are used as a tool for reflection within your business. You tend to review them either monthly or quarterly, looking at this period versus previous period (e.g. March v February or Q2 v Q1) as well as against the same period last year. This gives insight into how your business is performing, providing confidence that you are on track and often giving you surprising realisations; those lightbulb moments.

Where People go Wrong…. 

As business owners, we are often guilty of chasing growth and the next new thing, loosing sight of the nuts and bolts of your business. Regular management accounts ensure that you are looking at your business from all angles, for example renegotiating one supplier contract could have greater impact on your profit than launching a new product. It is less sexy, but provides a better return on your time investment. 

How We Work:

In providing Management Accounts , we look for trends in your accounts for example:

• one of your products or services that you haven’t been focusing on as you are building something new is actually your bread and butter…. putting focused attention on this once a month could drastically improve sales.
• or a supplier has been gradually increasing their cost and it’s now +50% on last year… time to renegotiate!
• seeing all your subscriptions in one place you realise the cost has increased and you are not making use of them… the Return on Investment is not adding up.

When you are stuck in the day to day and emotionally attached to your business it is difficult to spot these trends with clarity.  We consider your accounts calmly, and as neutral observers we spot things for you that can have a big impact on your profitability (often it’s the little not so exciting things that make a big difference).

Once we have gone through a few sets of management accounts, you will have far greater control over your business.

Management Accounts give you an ongoing understanding of your finances, reviewed monthly or quarterly. We provide a detailed pack including Profit & Loss Account, Balance Sheet, Debtors, Creditors, KPIs and with explanations of variances compared to prior periods.

 

What Full Service Looks Like:

Budgeting & Forecasting, Management Accounts and Cashflow are the holy trinity of your business engine. 

Your Budget is the map of where you want to go and a Forecast against your Budget is your sat nav keeping your eta up to date. Your Management Account are the pitstop to review, refocus and maximise profitability. Cashflow is the petrol (or electricity if you are being smart about your tax planning)  to keeping your business operating. Bookkeeping is the foundation that feeds all three. 

 

As a business owner, we realise that keeping an eye on all of your business all of the time is an impossible task. We are here to be part of your team and highlight the things that need to be highlighted.