As we emerge from the toughest recession that the country has seen for many years, there are many lessons that that have been learned by the businesses that have survived.
The smallest micro-entities can perhaps continue to operate with a traditional approach of annual accounts and using the bank balance to measure their performance. However, for most businesses in today’s competitive and fast changing environment, this approach is no longer sufficient.
Quality management information is vital to enable directors and business owners to make well informed and timely decisions to stay ahead of the competition. At a basic level an up to date profit and loss account and balance sheet provides a measure of the decisions being made by a business. Identifying key performance indicators (KPIs) and reporting on those on a regular basis can help a business focus on key issues and drive performance. It can also be used to incentivise staff and as a tool to help change attitudes and behaviours within the business.
As well as providing important information for management, the preparation of management accounts can also give banks and other lenders much more confidence in a business’s financial management and help lending decisions. Management accounts can be provided on the basis of a fully outsourced service, but also by working alongside a business’s accounts staff to prepare more detailed and relevant information, identify KPIs and provide an objective review and feedback.
For further information about management accounts, what to include and help and support in preparing contact us 01904 464156 or firstname.lastname@example.org