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How can management accounts benefit my business?

Management accounts can be an essential tool for any business owner; delivering timely and up-to-date information, they allow you to continuously monitor your financial position, remain flexible and competitive in today’s tough market and ultimately, drive your business forward.

Here we identify five benefits of management accounts that could prove invaluable for your business:

1. Full control of your business

Management accounts give you an in-depth insight into the workings of your business; from Key Performance Indicators (KPI’s) to variances in performance and from costs and sales to rate of return and predicting future trends. Management accounts equip you with the knowledge you need to take and sustain control of your business.

2. More planning, less surprises

Whether it’s cash flow forecasting or tax planning, management accounts can help you to carefully monitor your financial position, address any issues early on, as they arise, and avoid any nasty surprises at the end of the year. With accurate information available to you throughout the trading year, your ability to plan improves significantly.

3. Better decision-making

Having an accurate overview of your business today, means you can make better decisions about tomorrow. Armed with the right information, you can be confident in your business decisions and in your ability to react and adapt in the right way, at the right time.

4. Improved cash flow

Keeping on top of your cash flow can be a challenge but management accounts can help with this. Knowing what you have coming in and going out allows you to plan for certain financial commitments and avoid cash crises.

5. A strategy for success

Thriving, flexible and productive businesses are typically only as successful as their strategies and management accounts should certainly form part of this. Whether it’s monitoring performance, foreseeing risks and problems, developing new tactics or just taking comfort in the fact that everything is going to plan, they can help you to drive your business forward.

Here at George Hay, we can assist with the production of regular, timely management accounts. We will ensure that you always have key data to hand, as well as the means to interpret it, to help you make informed business decisions, evaluate your business’s performance and ultimately move your business forward.

Find out more about our management accounts offering here, or contact us today to discuss your requirements in more detail.

Fancy a little more light reading? You can read the first article in our ‘What happens if…’ series, ‘What happens if… I don’t have management accounts?’, here.

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