We support companies by preparing monthly management accounts. There is an extra cost to taking this approach. However, you do need to set aside time to review the management accounts every month.

We are often asked what management accounts are and what the benefit is to the business. Hopefully, this article will help you to understand more if this is an approach you haven’t taken before.

Management accounts

Management accounts are financial reports that are produced for the business. These can be done on a monthly or quarterly basis. The reports give some financial insight into how the business is performing. Management accounts are not mandatory, and no set reports are created. You can decide which reports will give you the best overview of your financial performance.

Typically, most smaller businesses ask for reports such as a profit and loss account, balance sheet, and cash flow statement to be prepared. When we first meet with our clients, we discuss what is important for them and decide on the set of reports that will benefit them most.

Benefits of management accounts

There are many benefits to taking this approach to managing your finances. We find that the time allocated to analysing the financial position of the company on a regular basis helps both operationally and at a strategic level. Some of the benefits our clients have found are:

• A clear understanding of the cash flow position as well as your profit & loss.
• Monitor the growth of the business and identify areas that are most profitable.
• By monitoring your expenditures, you can identify any areas that need reducing.
• To grow the business, you can make informed decisions about the pace of growth.

Another important benefit of regular oversight of your finances is that you can better manage your tax liabilities. We can work with you to help you increase your tax savings and plan all dividend payments over the year.

We hope this has helped clarify what management accounts are and the benefits of taking this approach. If you would like to find out more, contact us on 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it.