What are Management Accounts?
Management Accounts can be as simple or complex as the business chooses. They are essentially a set of statistical and financial data.
Management Accounts unlike statutory accounts are not a legal requirement. So the question is – should you produce them and if so what should they contain and what are they designed to do?
Should you produce Management Accounts?
The object of management accounts is to monitor performance and help you improve it or see where things are going wrong. It may seem to be a pain to produce a set of accounts that are not a legal requirement, but if you want to grow and be sure all is working well within your company then good management accounts are essential.
What should be in your Management Accounts?
You should include the key data that will help the management or owners make informed choices. They are very specific to what you want to achieve within your business and the key financial performance indicators within it, but they are your choice in terms of the figures you wish to monitor and control.
Frequency varies between organisations but monthly or quarterly is common. They do require effort, but you will be well ahead of any competitors who do not have a management accounting system in place. They will allow you to reflect on past decisions and guide future ones. We will be delighted to guide you and help in set up based on your companies individual needs.