Management Accounts

Improving business
profitability and growth
“The real value of accounting cannot be understood without Management Accounts which unlocks the story behind your business” Jahan Aslam
  • Industry & business specific customised reporting
  • Complete Bookkeeping service
  • Dedicated qualified Accountant
  • And much more
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Statutory Accounts

Managment Accounts

Payroll

Business Plan

Self Assessment

VAT

Pension & Auto Enrollment

Consolidated Accounts

Bookkeeping

CashFlow Managment​

Financial Forecast​​

What are management accounts and why do I need them

Every month or every quarter, a set of customised or standard financial reports is prepared by your company’s accounting department to assist you in tracking the progress of your business. Unlike Statutory Accounts (which are required by the Government and are prepared after the year-end), Management Accounts focus on your business requirements, such as KPI’s, Balance sheets, Profit and Loss, and an Executive summary. Business owners and managers use them to track key performance indicators and make daily and strategic decisions about their financial health. These reports could help play an essential role in planning for growth and help secure a loan if you require one.

Further information about management accounts

Management accounts are vital in running and monitoring your small business or organisation and highlight several critical indicators regarding performance and whether you are achieving your goals within the required timeframes.

You can access:

  • Staff and management performance
  • Which customers are providing the most business?
  • Cashflow & billing
  • Pinpointing your business’s ‘star performers’ as well as those who are underperforming.
In summary, this can be a powerful tool to help you run your small business to its full potential and determine your business successes and where you may need to make improvements or new financial decisions.

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Looking for a bespoke management reporting for your business? Speak to one of our specialist!
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Using Xero for your management accountants

A Balance Sheet shows the financial position of a business at any given point in time. A Balance sheet should be prepared with notes to help indicate key business ratios, such as liquidity ratios, debtor and inventory days etc., which can highlight risk areas, so you are in a much better position to plan any cash flow needs.

Difference between management accounts

and financial statutory accounts

What are management accounts and why do I need them

Aggregation

Consider the entire business
Consider the specifics of the business, such as the profits earned by a product

Efficiency

Consider the efficiency of the business as the report is about profitability
Take into account the specifics in order to help understand the root of the problem and find its solution.

Proven Information

Require precise records
Work on actual, estimates and approximation

Reporting Focus

Reports for within and outside the company focused on finances
Reports mainly for within the company focused on operations

Standards

Need to meet certain standards set by Companies House
Do not have to comply with any standards

Time

Take into account everything that the business has achieved
Have a future orientation

What goes in management reporting packs

Full Accounts must include all the essential reports such as profit and loss, a balance sheet, and detailed accounts. In addition to this, full accounts must also include an accountant’s report and a director’s report. Both of which provide further important information about the company.
We can send ‘Abridged accounts’ for companies that meet the Small Business or micro-entity criteria. Abridged accounts have a more straightforward balance sheet (a Balance Sheet and reduced number of notes to the accounts) – applicable if you do not want to include details like gross margins or annual profits. However, they exclude profit and loss.
A company is dormant if it has had no ‘significant accounting transactions during the accounting period or may have recently been set up but not traded as yet.

Why Choose Us?

We support your business
at each growth stage

Start-up stage

If your business is an ‘early shoots’ start-up, a simple and basic set of reporting would be enough as there probably isn’t much data to evaluate at this stage. Analysing the following will do the job for you:
  • Summary of accounts
  • Profit and Loss
  • Balance Sheet
Covering these areas will give you a good insight into the basics of your business so you can make informed decisions based on your current financial standing. As a result, you will move towards growth much faster. Moreover, when it is time for you to make a significant investment, you can change the indicators to be covered in the reporting pack.

Growing Stage

As your business grows and develops, you may consider making some investments. As a result, you will need to be aware of your cash flow. Generating management accounts reports can help you assess your income and outgoing expenditure so you have a better understanding of the money you need to pay out and receive. The reporting may need to move to the next level as you will need to include factors that will enable you to understand better the money being spent. The following will do the job at this stage:
  • Payables
  • Receivables
  • Budget
  • Cashflow

Mature Stage

This is the stage where you need to include more targeted and complex detailed reports and must include the following:
  • Key Performance Indicators (KPIs)
  • Shareholders Loans Transactions
  • Accruals and prepayments
  • Segmental/departmental analysis
  • Profit & Loss actual vs. last year and/or forecast

FAQ's

The preparation of your small business Management Accounts typically includes a profit and loss account, balance sheet, cash flow statement and a short report. You can put the accounts together yourself, or more realistically, an accountant can do it for you.
Management accounts form a financial report used by business owners and management for day-to-day and strategic decision making. They are produced, usually, on a monthly or quarterly basis, and provide insight into the current financial health of a business by tracking various key performance indicators.
The primary purpose of management accounting is to analyse information. They determine problematic areas and develop ways to correct them. so you can run your business to its full potential and determine your business successes and highlight where you may need to make improvements or make new financial decisions.
Financial accounting is focused on creating financial statements to be shared internal and external stakeholders and the public. Managerial accounting focuses on operational reporting to be shared within a company.