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Management Accounts Preparation and Advice

Management Accounts

Management accounts aren’t mandatory, but they can be key to the success of your growing business. Unlike annual accounts management accounts provide up to date information about how your business is performing. They’re usually produced on a regular basis – monthly or quarterly. They can be used to monitor your efforts and assess the impact of any significant changes you have made to your business. Without them it can be difficult to make informed decisions based on up to date information.

Management accounts are the most effective when tailored to your business, covering what’s most important to you. The detail provided in the Profit & Loss account and Balance sheet can be tailored to show the level of detail that’s right for you. Key performance ratios and KPI’s can be included in the reports and also comparisons with earlier periods or the same period in the previous year.

We can prepare management accounts if you use Xero or Sage Line 50 for your book keeping and would usually attend your business premises to undertake the work.

Our management accounts and information services include…

  • Monthly or quarterly management accounts;
  • Reporting of key performance indicators that are the underlying drivers that run your business;
  • Help with in-house systems for you to produce your own information;
  • Training on how to get the most out of your information;
  • Supplying management information to lenders;
  • Branch/Divisional results;
  • Actual performance compared to budget and/or comparative periods;
  • Costing information, including break-even turnover levels.
  • Preparation of cash flow forecasts.

We can tailor exactly what we provide to your requirements.

Cash Flow Forecasts

If you have a detailed business forecast we can also use this to produce a cash flow forecast that will show you if you have surplus funds to invest or need to consider an overdraft facility. It’s important to remember that profit is not the same as cash. If you are investing heavily in new machinery your profits may be healthy but the investment will affect your cash flow. This is crucial information for any business and particularly rapidly expanding startups that may be highly profitable but still fail due to lack of cash.

A cash flow forecast is an ‘early warning system’ of potential shortages of cash – effectively the life blood of your business. A forecast ensures that the business has sufficient funds to pay its suppliers and employees.

Preparing a cash flow forecast also encourages a business to look at how quickly it is being paid by it’s customers.

If a business is seeking finance from a bank or other lender they may require a cash flow forecast to support the loan and ask for periodic updates.

If you would like a free no obligation meeting to discuss how our management account package could help your business just get in touch.