Once you have started a business and commenced trading it is easy to focus on the development of your business and overlook the importance of operating an effective accounting system. Many businesses concentrate on expanding their business and wait for their accountant to tell them how they have performed at the end of the accounting period, these accounts may be prepared several months after the period in question leaving you ill informed on how successful you have been for well over a year.
Management accounts are an interim set of accounts prepared on a regular basis i.e. monthly, quarterly or less often six monthly. The purpose of management accounts is to provide you with accurate accounting information throughout the year so that you can:
- Monitor the profitability of your business
- Keep track of your debtors and creditors
- Improve your cash flow by using budgets
- Monitor your overheads and reduce expenses where possible
- Prepare for VAT, PAYE/NIC and tax liabilities
The above are all vital components for consideration when operating a successful and in particular, expanding business. We can offer a basic management accounting function that will provide you with accurate profitability reporting or a more bespoke service where we can manage your cash flow by managing your supplier accounts and also liaise with debtors to arrange payment.