What are Management Accounts?
As an offshoot of accounting, management accounting places a focus on a particular business’s revenue and expenses. A management accountant is in charge of noting when unusual declines and spikes in revenue and expenses occur, and then reports these instances to management. This is done in order to analyse the situation and then take the necessary steps to improve the business’s financial performance.
This is not all, however, as management accounting can also provide reports that cover any aspect relating to the business, which can include:
- Available balance
- Analyses of the capital budget
- The accuracy percentage of inventory record
- Loan covenant compliance
- Order backlog
- Percentage of overdue accounts receivable
- Project profitability
This all results in reports that are solely meant to be used within the business. As it is kept internally for insider’s eyes only, it would not need to comply with requirements and frameworks set out by international Financial Regulatory Standards.
Such a service can be one of the most important tools in any business’s arsenal. While this may be dependent on which membership plan you choose to opt into, the absolute best set of management accounts is where we are able to measure your financial state up against what your budget can allow, something that we set up for you. Following this, we create a strategy along with a tax structure, then we measure your monthly financial figures against your current budget in order to observe if any spikes occur, or if different ratios come up that lead to different results.
To provide absolute assurity to our clients, we conduct a monthly meeting with our clients over Zoom to discuss the management accounts that we sound out on a monthly basis. This is done with the aim of improving a business’s performance, productivity and income while reducing expenses, and providing solutions along the way that are in line with the budgets and strategies that we have provided.
Choosing the right membership package for your business is abundantly important, as you are provided with a hand that will guide you every step of the way in order to realise what needs to be done to achieve success as a company.
The membership packages that are available to clients include:
What is Our Management Accounts Process
We will first send the accounts to the client and then set up a zoom meeting to discuss these accounts before providing any suggestions that can help improve company performance.
By receiving these management accounts on a monthly basis, clients are provided with a powerful tool that can guide them in a financial sense.