MANAGEMENT ACCOUNTS
Monthly management accounts allow you to see your company’s performance, broken down into an easy to analysis sections that show your full monthly finance progress. At The Accountancy Solutions we have an expert system established to ensure the information is simple to compare to previous months and that your budget, actuals and variation are all presented in a easy to read and understandable way. When you need information quickly, a well-recorded monthly management accountant can provide instant finance records.
MANAGEMENT ACCOUNTS JARGON
Management accounting is especially important if you are intending to gain investors for your company or if you want to obtain finance from a bank. They are also very important for revealing the true value of your business and for keeping your informed as to where you are making your profits and the areas in which you are making a loss.
Management accounts must always include:
- A properly created balance sheet with prepayments and accruals adjusted and the ledgers having been reconciled to them. A proper balance sheet is essential for obtaining finance from banks and financial organisations as well as for ensuring that the business will be sold for its full value should your wish to sell. A balance sheet can also show the accurate state of your financial affairs since both positive and negative elements the business will be highlighted.
- A profit and loss account
- An analysis of cash flow
- Key performance indicators which will reveal current and historic business trendsing is
Advice for Management Accounts
Management accounts need to be prepared on a regular basis, and depending on the size of your company they may need to be prepared on either a quarterly, bimonthly or even a monthly basis. There are many Key elements that need to be included and ensuring that they are drawn up properly is essential. Preparing management accounts can be a difficult and time consuming task, especially when ensuring that all information and data is fully accurate. It is often best to outsource this task to a skilled and qualified accountancy service such as The Accountancy Solutions who can ensure that this job is completed properly so that you and your company can benefit from the advantages of effective preparation.