Having a clear view of how your business is performing is equally as essential when things are going well, as when you’re facing financial challenges.
Well prepared management accounts, and access to advice in relation to the output, can help you to achieve this.
What are management accounts?
Management accounts are financial reports that contain information vital to your business, such as your profits and losses, a balance sheet, and a cash flow forecast.
Unlike statutory accounts, which are produced annually, management accounts are produced on a more regular basis – typically either monthly or quarterly, to suit your requirements.
This frequent reporting allows for up-to-date financial insights, enabling businesses to constantly respond to changes in the market environment in a proactive manner.
How can management accounts benefit your business?
Management accounts can provide businesses with the financial data needed to make adjustments at organisation-level, or at process-level, in real-time.
They give you an unparalleled insight into how your business is performing now, but also into where you’re headed if you continue to employ the same strategies and processes, versus if you were to make some changes.
Business owners are able to ‘react’ and make strategic decisions based on concrete information, rather than guesswork, which can help when investing, seeking finance or making a business more resilient.
By focusing on detailed costs analysis, management accounts can also drive operational efficiency.
They offer key insights into cost structures, making it possible to identify inefficiencies and areas of waste that can be targeted for cost reduction. This can help you to improve profit margins, to better manage your cash flow, and to be more financially aware.
Although primarily designed for internal use, management accounts can also strengthen communication with external stakeholders.
An advisory approach to the production of management accounts
When it comes to producing regular and timely management accounts for businesses, we ensure that as well as always having the latest accurate data to hand, you also have the means to interpret it.
Our advisory approach means we place great importance on taking the time to discuss the output with you, and how this can be used within your business.
How can GH Online Accounting help?
If you would like more information about our bookkeeping and cloud advisory services, or to discuss how we can help you use management accounts to strengthen your company’s financial outlook, please contact us today.