Joe Lennon FCCA highlights the different reporting elements of management accounts and the benefits they can bring to running your business.
Management accounts aren't mandatory, but they're key to the success of your growing business. They're usually produced on a regular and consistent basis to ensure you're getting the most out of monitoring your efforts - typically monthly or quarterly. Without them it can be difficult to make informed decisions on key matters such as funding requirements in your organisation.
So what should you actually include in the preparation of monthly management accounts? Nothing is set in stone but they tend to be most efficient when tailored to your business, covering what's most important to you as the owner manager. After all, you know your business better than anyone else. That said, it's not always easy to narrow down on what to focus on. So we've put together this infographic with some suggestions to help you.
Be sure to work with an accountant to formulate what to report on in your management accounts, so as to inform and help drive future investment and strategic decision making.
The content of this post is up to date and relevant as at 19/06/2017.
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