Why Management Accounts are so important

June 10, 2021by Anastasia McCabe

Are you receiving your accounts only once a year 6 months after the year end? Do you look at your accounts only to sign them off to Revenue? Do you feel that you control your business then?

In order to manage your company you need to review Management Accounts ideally on monthly basis.

Do you have plenty of cash in your bank, but do you really make profit? Struggling to pay bills, but are you sure you sure you are in loss?

Management Accounts can help to answer your operational questions:

Can you buy a car now with the company’s money and not harm your business?
Should you refuse from some clients?
Do you need to close a loss-making company or wait?
Will there be a credit gap in your cash flow this month?

Management Accounts can help to analyse:

Your increase of certain expenses and understand how beneficial that increase was.

Changes in sales comparing to budget or last year – what does it mean for your business?

Many small business thought they could not afford monthly Management Accounts from the professional accounting analysts, however with growth of outsourcing services they now can receive it and manage their businesses more efficiently!

Anastasia McCabe