Management Accounts are financial reports produced usually monthly or quarterly that provide interim information for business owners and managers. They normally include a Profit and Loss report and a Balance Sheet, but can be customised to show the information that is particularly relevant to that business.
Comparatively few businesses produce Management Accounts, and of those that do, many won’t get the full value from them.
It’s not unusual for business owners to think their business is too small to benefit from management accounts, or that they would take too long to produce and be a distraction from more important work.
The reality is that Management Accounts can be created very quickly once the reporting is set up, especially using Xero or Quickbooks, and they can show business owners exactly how their business is performing.
- Which is your most profitable product or service?
- Is this month more profitable than the same month last year?
- How have overhead costs moved in the last three months?
Management Accounts enable you to measure key elements of the business, and if you can measure it, you can improve it.
We hope these posts will help demystify Management Accounts, and explain why they could help transform your business and help you sleep better at night.
If you’d like to know more, please get in touch. We can help you set up an internal process to create your Management Accounts, train an internal resource to produce them and help you get to grips with getting the most from them, or produce them for you and translate the content. It’s entirely up to you how involved you’d like us to be and for how long, but they really can be transformative.
Why Management Accounts are relevant to EVERY Business
Many business owners think that Management Accounts are for big businesses, but that’s not the case! Find out how Management Accounts are relevant for even the smallest business.
Would YOUR Management Accounts pass?
You may think that Management Accounts are pretty standard, and they should be, but a recent event proved that isn’t actually the case! An audience of more than 500 business owners was asked a series of questions about their Management Accounts, to assess the quality and completeness of the information they contain. The results were truly shocking, even based on our experience!
Shine a Spotlight on your business!
Not everyone has the ability to look at a list of numbers or a spreadsheet and be able to interpret them. With that in mind, we can use an award winning forecasting and reporting tool called Spotlight to help clients interpret their business numbers. Spotlight links to Xero or Quickbooks, and draws the detail from your system. It can also be extremely powerful aid to strategic planning, goal-setting, budgeting and forecasting.
Why not take a look at these sections too, as there is some overlap between our categories and we’d hate you to miss out!
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Can I just say we are so pleased that we have moved to Baranov Associates. As we discussed when you visited, we had to find a way to take the stress out of all of the financials and you’re doing that for us! We can see how to use Xero more efficiently and so with us being as on top of it as we can be and with you and Liz we feel a lot more confident about our business being in good shape.
Mrs S James, Sandbanks Capital Partners Limited
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