MONTHLY MANAGEMENT REPORTS

We measure your business’s performance and identify areas for improvement to help your business to achieve your personal goals.

Accountants cannot provide any business advise or identify why your business is not making money without analysing complete and accurate monthly management accounts. Without accurate management accounts, your accountant will be just as much in the dark about your business as you are.

In general, the management accounts are the use of accounting information that will report on the recent historical trading and show the trading performance to spot troubling trends before they spiral out of control or to affirm the business is on track in relation to its financial plan to achieve your personal financial goals!

Typically, management accounts are made up of:

• Balance sheet (Financial Performance)
• Income Statement – displayed monthly
• Schedule of expenses – displayed monthly
• Notes to the management accounts for the current month
• Cash flow statement – displayed monthly

Many smaller business owners do not know or understand the value that management accounts can provide.  Management accounts can extend to risk management and contribute to identifying frameworks and practices for recognising, measuring, managing and reporting business risks.  In addition to financial statements, banks and other financial institutions also require management accounts before they will consider advancing loans, financing assets or increasing overdraft facilities or reviewing current overdraft facilities.

By receiving regular monthly management accounts, you will know every month how much provisional tax or income tax your business needs to pay so that there are no nasty surprises when taxes become due.

The more accurate, timely information you have about your business, the better you can manage it.

Read: Why management accounts are so important for small businesses.