Who is it for?
If you are an entrepreneur just starting out or an established small business and want to know how your business is continually performing and the direction it is headed, then this is for you.
If you want to drive success by staying ahead of the curve, then you should have periodic management accounts prepared rather than wait until after your business’s annual accounts are prepared to know how your business is performing.
Occasionally the banks and other lenders may require periodic management accounts (for example, as part of a loan covenant) to ensure the business is meeting the requirements of the lending facility.
Why is it important?
Management accounts are used by small businesses widely to help business owners and managers steer the business in the right direction.
It helps identify potential issues through early warning signs and gives the opportunity to act before it’s too late. Waiting until the annual accounts are prepared for statutory and tax reasons is far too late to solve any issues in time.
Annual accounts are primarily for statutory filing with HMRC and Companies House, it does not serve the purposes of identifying issues and taking any meaningful decisions based on the results as it is too far down the line to act.
Periodic management accounts are therefore a vital tool for a business to continually know how the business is performing and its financial position, and to act in time based on real-time information of the business’s current financial situation.
It is tailored to provide key information relevant to a business and its activities through meaningful reports and to aid decision making.
How often do you need it?
It depends on the nature of the business. Most small businesses choose to prepare management accounts on a monthly basis. Some prefer it on a weekly basis, particularly if it is a business with fast-moving goods. Others choose to have it on a quarterly basis or as and when needed – such as when required by external lenders.
How We Can Help
We can tailor a bespoke management accounts pack either monthly, quarterly or even weekly that is designed to aid business owners with non-financial background to understand the business’s performance and make informed decisions.
You can choose to have just the management accounts and reports with a video explanation of key numbers in your accounts or have a meeting with us (virtual or face to face) to walk you through the accounts and reports where you will also have the opportunity to ask any questions you may have.
We won’t just stop there; we’ll give you our professional opinion to help you make the right decision if required based on up-to-date financial information of your business.
With our professional advice and expert help, you can build a truly successful business.