07 November 2016
What are the benefits of preparing management accounts?
Running a business brings many challenges but trying to make business decisions without up-to-date financial information can be a bit like driving with your eyes shut.
From trying to decide when to take on the next employee or when to move to bigger premises, to more fundamental matters like whether to focus on growing sales or cutting costs, it is very hard to make important decisions about your business without up-to-date financial information to hand.
Regular management accounts, from a simple profit & loss account, to more detailed cash flow forecasts, help you to keep your finger on the pulse of your business and are a vital tool in the armoury of any business owner.
All too often we have sat down with business owners a few months after their financial year end to discuss their accounts only to find that they were not aware of reduced profit margins or rising costs. Had they known sooner they could have taken action to minimise the impact on their profits.
Management accounts allow business owners to stay in control of their business and to plan ahead for known costs to make managing the cash flow less stressful.
At KRW Accountants we can help with the preparation of monthly or quarterly management accounts, and can provide anything from a simple snapshot to an in depth analysis of the key figures.
We can also assist with preparing budgets and forecasts so that you can plan ahead which is essential to grow your business effectively.
We can even attend your management meetings, taking on a quasi Financial Director role, offering solid financial expertise to your management structure.
For further information, or to obtain a quote, please contact me.
- Management accounts give up-to-date financial information about your business
- These allow you to keep your finger on the pulse and make informed business decisions
- Cash flow forecasts allow you to plan ahead for known costs
- KRW can help with the preparation of management accounts and forecasts
- We can also attend management meetings, taking on a quasi FD role in your business