Management accounts

Management accounts are invaluable in helping you to make timely and meaningful management decisions about your business.

Where possible we encourage our clients to consider utilising our management accounting service, as this provides an up-to-date understanding of the performance of the business.  This then allows business owners to make quick strategic decisions based on facts, not solely on intuition.

Management accounting reports analyse recent historical performance, including monetary and non-monetary Key Performance Indicators, and usually also include forward-looking elements such as sales, cashflow and profit forecasts, together with break-even analysis.
These analyses are usually measured against forecasts and budgets that have been produced at the start of the financial year. This allows us to ensure that your business is on track to achieve its goals.

There is no legal requirement to prepare management accounts, but it is hard to run a business of any size effectively without them.

Our Approach at McCranors

McCranors will sit down with you and work with you to ensure that you have the correct systems in place to capture and collect critical management information data.

We will then tailor management accounting reports that provide the information that you need to run your business effectively.  Our reports will be analysed by our experts to ensure that they add value to your business and are based on your objectives. 

Because this service gives us high quality information, it reduces the time taken to prepare your annual accounts, which allows us to reduce your yearly accounts fees.  So not only do you receive meaningful and powerful information to help you run your business throughout the year, but you also save money on your year-end accounts!

Uses of management accounting

Management accounts will enable you to:

• compare your accounts with original budgets or forecasts
• manage your resources better
• identify trends in your business & assist decision-making
• highlight variations in your income or spending which may require attention
• identify break-even points

They should be used for the following:

Record keeping

• recording business transactions
• measuring results of financial changes
• projecting financial effects of future transactions
• preparing internal reports in a user-friendly format

Planning and control

• collecting cash
• controlling stocks
• controlling expenses
• co-ordination and monitoring of strategy/performance
• monitoring gross margins

Decision making

• using cost information for pricing, capital investment and marketing
• evaluating market and product profitability
• evaluating the financial effect of strategies and plans

Call McCranors today on 02476 258621 for a no obligation meeting to discuss your management information requirements.

McCranors: Accountants You can talk to.