It may come as a surprise to some but here at GMH Chartered Accountants we believe management account information to be the most valuable financial tool to business owners and management. Annual year end accounts are required for Companies House and HMRC however are historic documents, often when completed, the business shall be some five to eight months further down a path which isn't always in its best interest (i.e. Loss making).
Instead, management accounts are prepared either on a monthly/bi-monthly or quarterly basis thus allowing a snapshot of the business performance. This document is often produced quickly after the month or period end thus ensuring they remain valid for the reader and provide useful information. It is at this time when we are sitting down reviewing them that small changes to the business can be made, i.e. assessing the pricing structure of products, reviewing old stock, drilling into sales trends.
By completing management accounts it provides the opportunity to make changes during the financial year, not after.
The completion of managament accounts dont need to be expensive and are probably more affordable than you think. Also by completing regular management accounts, it allows for small savings on your annual accounts given work is being completed throughout the year rather than at one period in time after the year end. Should you feel your business could benefit from management account informaiton, please contact us to discuss your requirments where we can tailor a specific quote for your requirements.