Preparing management accounts probably sounds about as much fun as rearranging your sock drawer… but the rewards are infinitely greater.
Done properly, management accounting will help you to make more informed business decisions, manage risk and – best of all – maximise profits.
WHAT ARE MANAGEMENT ACCOUNTS?
Management accounts are primarily forward-looking, are made available only to internal staff rather than the wider public and are prepared to your needs rather than to comply with any government-set rules. These 3 things set them apart from the annual accounts that your accountant prepares.
Variance analysis, forecasting, planning, reviewing, and monitoring costs are essential components of management accounts.
Regular reports help you work out where your business’s main expenditures lie so that costs are transparent and can be reduced wherever possible.
Management accounts will cover some or all of the following:
- Strategic planning and management advice
- Price modelling and product profitability
- Client profitability analysis
- Cost analysis and allocation
- Annual and capital budgeting
- Sales and financial forecasting
- Business metrics development
- Sales management scorecards.
If you do not currently employ a management accountant, you may find that you are missing out on opportunities to grow your business. If this is the case, it is possible to outsource your management accounting requirements.
Dunkley’s have been providing this service for businesses of all shapes and sizes for many years. To find out more and discuss how Dunkley’s can support your business, call us on 01454 619900 or email firstname.lastname@example.org.