Management accounts are a set of financial statements that contain information such as your balance sheet, cash flow and income.
They are generally produced on a monthly or quarterly basis but why are they produced and what are the benefits of having them created?
Up-to-date Information
Essentially, management accounts provide you with up-to-date information on your company’s performance at present and predicted performance in months to come. With the help of this information you can make an educated decision with your money.
To delve further into this explanation we will provide an example. Management accounts inform you of your operating margins or how quickly or slowly a product or service is selling. It gives you an indicator on the volume of sales which in turn can help you best manage staffing levels.
Cash Flow Forecasts
If you take a look at your bank account today you will see a certain sum of money and that’s fine. How about the money that will come out of your account in the coming weeks?
With management accounts you are provided with this information, with a cash flow forecaster, to not just determine what money you have right now but how much money will be going out, preventing a cash-crises by keeping you informed.
Control Over Your Business
Management accounts also provides you with crucial insights into sales trends and year on year comparisons. Any changes in the amount of particular products is documented too.
Having a better control over your business in terms of sales trends and successes/failures will allow you to gain insight into what has worked and what hasn’t worked. By taking what works and placing it further into action you can drive increased business growth.
Rate Of Return
The Rate Of Return (ROR) of an important business decision or investment can be predicted through the production of management accounts.
Use this as a predictor in helping you make valuable decisions for your company.
Manages End Of Year Costs
Cut back on your end of year costs with management accounts. By having frequent management accounts created you can notice any issues or tax liabilities as they occur and manage them accordingly. Resolve these matters quicker and prevent a build-up at the end of year audit, thus reducing costs.
Invest In Management Accounts Today
At Kane Bergin we know not everyone can afford management accounts. We offer efficient management accounts in a cost-effective manner.
By investing in our services we can provide you with up-to-date information on your company’s performance so you identify its strengths and weaknesses. Grow your business and make the most out of the process with management accounts.