As your business grows, the next step along from bookkeeping is having regular management accounts produced.
These are not in a difficult to follow format like the statutory accounts, these are accounts presented in a format the business management can understand. It can take just about any format the business owners require, providing just the financial information they feel is necessary.
Typically management accounts are prepared on a monthly or quarterly basis. The information that has been prepared through your bookkeeping will feed directly into producing the management accounts, which at a minimum usually includes a balance sheet and income and expenditure statement.
Management accounts will help you monitor your performance on a monthly or quarterly basis. It’s helpful for keeping an eye on your costs or if you are approaching the VAT threshold.
If you have a budget for your business, we’ll use that to highlight where you have exceeded expectations or are falling short.
If your bookkeeping is good, then producing regular management accounts should be quick and easy – and cheap!
What’s more, all this information will be leveraged when producing your year end statutory accounts. Essentially, it’s the same information, just in a different format. So that makes producing the year end statutory accounts quick, easy and relatively cheap.