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Management accounts are the reports produced on a regular basis in order to monitor the financial performance of a business.
Each set of accounts, whether produced monthly, quarterly or on another suitable timescale, should answer the following questions:
l What did we do last month?
l What did we say we would do last month?
l What are the differences?
l How does this affect the future?
l Where can we improve?
In order to answer each of these questions there are a certain number of procedures that need to be in place:
l Period budgets - a set budget which has been put in place as a map to guide the business
l A system for producing accounts on a regular and consistent basis
l The will to delve into the figures and improve the company’s performance
Often the Management accounts will contain additional data, relevent for the business, to monitor key performance indicators. For example, ratios for sales per £1 of labour cost incurred.
Hawthorn Accountancy Solutions can assist your business in establishing these accounts, budgets and key performance indicators. Contact us today by clicking here and sending us an email and we will arrange to visit you and discuss how our companies can work together.
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