They consist of a set of financial statements usually prepared monthly or quarterly, which provide clear insight into the financial trading position of your business.
They aren’t required by law, and they don’t have to be filed with HMRC – but they’ll put you more in control of your finances than ever before, supporting the growth of your business.
Management accounts for small businesses typically include a profit and loss account, balance sheet, cash flow statement and a short report. You can put the accounts together yourself, or more realistically, All Tax Accountants can do it for you to ensure they are accurate.
What are the benefits of management accounts?
Management accounts allow you to gain a detailed understanding of how business is performing which is vital if you want to achieve success. The reports contain important information such as how much money has moved in and out of the business, your costs, cash flow situation and your profit and loss.
They allow you to spot what’s going well so that you can work on them and make them even better. Importantly they also allow you to spot things not going well so you can take action immediately to turn things around before it is too late.
The benefits of management accounts include:
- Boost business growth
- Monitor your costs
- Plan for the future
- Efficient tax and dividend planning
- Help you secure funding