Do you hear management accounts and automatically tune out? Do you assume they are for big serious businesses with big serious management teams? The big question is, what are management accounts and why are they helpful?
Personally I think the name does them a big disservice. It makes them sound far more serious and scary than they actually are. In reality they are incredibly helpful. They should be called super helpful business insight reports.
Want to know how much money you’re making, they can help.
Want to know how much tax to save, they can help.
Want to know where you’re spending your money, they can help.
Want to see if you’re following your budget, they can help.
Management accounts are also really helpful with cashflow and predicting what your future months may look like, which is vital for your business success.
Management accounts allow us to easily compare prior periods with reports, so if you want to see how much things have changed from this time last year and get excited about it, management accounts will be your thing. Who doesn’t love a chance to celebrate business growth?
Another common misconception about management accounts is that they have to be monthly, they don’t. If you’d find that overkill quarterly can work just as well. Its all about making the reporting work for you.
For management accounts to work for you you do have to have a few things in place:
You need to be on software. We can’t tell you what’s going on unless we have real time access to see it.
You need your bookkeeping up to date. We can’t tell you how the months are going if we’re 6 months out of date.
If you’ve made it this far and are thinking to yourself, you know what Beth, I’d love some super helpful reports and insights from you, pop me a message and I’ll give you a quote for them.