Management accounts and reports are becoming more relevant to all businesses given the importance placed on management and control by both owners and third parties, such as banks.

Whilst management accounts were generally perceived to be a function sought by larger businesses, we now find clients of all sizes are keen to keep track of their business performance throughout the financial year. Accurate, reliable and timely information presented in the form of management reports can influence and support key decision making, leading to improved results.

There are many benefits from preparing management accounts:

• A business can identify and track trends in its results and anticipate performance for the year ahead.
• The profitability of a business can be regularly assessed, allowing measures to be taken throughout the year to strengthen the business’s position.
• With regular monitoring, cashflow management and control can be improved.
• Unprofitable areas of the business can be identified at an early stage, allowing preventative measures to be taken to mitigate losses.
• More frequently, third parties are requesting monthly management accounts to support lending or funding applications and to satisfy covenants within the lending or trading terms.
   

Ask yourself – Would more regular, detailed analysis improve your management decisions? Would you benefit from regular updates on the profitability of your business? Does your bank want reassurance? If so, please contact us at info@amberaccounting.co.uk to discuss how Amber Accounting can assist you.