Management Accounts

Management Accounts

Management Accounts

The preparation of regular in a form that suits you and your business. These accounts can be monthly or quarterly, whichever best suits your needs. These accounts will be prepared from your own accounting records, with accounting journals and provisions made where necessary From these you as the owner/manager can see how your business is performing, good or bad, and act accordingly.In addition, these accounts can be requested by financial institutions, i.e. bank or money lenders, to notify them just how your business is operating so that extra funding may be made available to you. Some banks, etc will not give or extend existing overdraft or loan facilities without being in receipt of regular management accounts. They may even remove your facility if they are in any way unsure of your credibility. Management accounts are a managerial tool to control costs against income.

By producing regular accounts, problems can be identified before it is too late to do anything about them. Whereas with annual accounts you don’t receive them until significantly after your accounting year end, when the next year end is drawing ever closer, then the problems have sat for nearly two years before they have been identified.