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Management accounts
What are the benefits of management accounts?
Boost business growth
Monitor your costs
Efficient tax and dividend planning
Help you secure funding
What should you include in management accounts?
There’s no one-size fits all solution to management accounts as they should be tailored to the needs and goals of the specific business
Key performance indicators (KPIs)
KPIs are measurable goals that you want your business to achieve during a particular period of time. They can be financial and performance based.
Profit and loss (P&L) statement
A profit and loss statement, also known as an income statement, outlines your revenue, direct costs and expenses. Subtracting all expenditure from income will show your business’ net profit or loss.
Cash position
It’s vital that you monitor your business’ cash flow ensure you don’t run out of money. Include in your management accounts a summary of how much cash is flowing in and out of your business in the period the accounts cover.
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