Management Accounts Services
From expert accountants based in London
Without a sense of direction and planning, one can lose sight of its goals and plunge into the unknown, where it can become difficult to crawl back out. If you have found yourself in deep and turbulent waters, evotax can help you reclaim your business back into stability and growth.
“We help businesses achieve growth”
You may be a seedling or a fully-fledged revenue-generating business; with our helpful business insight and careful planning, we will help you surpass your business objectives.
FAQ about management accounts
Management accounts are a set of accounts that can be produced at any time. They consist of Profit and loss statement, Balance sheet, or cash flow.
These are produced for comparative and analytical studies, which help provide insight into crucial business areas.
The information derived will help you maintain control and steer your business in the right direction.
If your business is seeing growth or you are planning on growing your business, management accounts will be your foundation to make any strategic decisions. They can be useful in understanding which areas of the business require funding, which products are selling the most, or if more items need to be added which are similar to the best sellers. The list is endless; essentially, you get a good insight into your business to be in a better position for growth.
Equally, if you are looking for cost-cutting, business insights provided via management accounts, will help back up any strategic decisions you make.
They are totally different; however, the fundamentals are the same.
Annual accounts are created at the end of the year so that your accounts can be submitted to HMRC. They are also produced in a very different format, which does not help get insight into your business.
On the other hand, management accounts can be produced as frequently as you want and can provide you with a much more detailed overview of the business.
Each line of the statements can be looked into detail and can be compared to last year’s financial statements and budgets to see if the business has hit its targets.
Management accounts can also be compared to the industry average. This comparison will show how your business is performing as a whole in contrast to the industry. This will help you position yourself in a much better place to remain competitive in the market.
By regularly inspecting your business performance, you will be able to keep sight of the direction your business is headed. It will give you key insights, for example, which particular item has been the most popular or which day of the week is best for business.
Anything that can be measured can be improved.
Managements accounts, as the name suggests, are used for your management. Therefore, there is no set format for producing them. Every company adopts its own way, which is most beneficial for them and highlights those elements which are most important.
Each department of your business can essentially have its own set of management accounts, only showing them the elements, they need to focus on, and which is easy to understand.
Essentially management accounts should be geared up to provide information on what you need to improve and forecast confidently for the future of your business.
Contrary to Statutory accounts, management accounts should drill down into a more detailed current performance with help of commentaries and comparative analyses.
Management accounts should only be produced in a way that their audience is able to understand without causing any confusion.
Generally, it will consist of the Profit and Loss report, a cash flow statement, a balance sheet, and some Key performing indicators.
You can head over to our services page to better understand each of these in more detail.
KPIs can be a powerful tool for all types of businesses. Their purpose is to keep your business accountable for the objectives it had set out, to ensure it is moving in the right direction.
Anything measurable can be fixed.
It will not only help you steer in the right direction but also help you take appropriate actions, which can be measured.
A set of well thought KPIs helps you stay consistent in your business objectives and make effective decisions. They will also provide a clear vision for every department in your business to follow, which has the benefit of being a motivator. This can result in each department being rewarded or penalised for their efforts.
Each department should have at least 3 KPIs that are easy to track and benchmark.
To understand more about setting KPIs or getting help in creating KPIs, please feel free to call us or book your free consultation.
Depending on the industry you’re in, it is good practice to be produced monthly or quarterly. Some even require weekly.
Management accounts are purely for your use; therefore, you do not have to submit them to Companies House or HMRC. As they are not regulated, there is no set way of producing them. You can take away or add anything you like to get a better picture of your business.
In order to get the best info from your management accounts, we can help you in the following ways:
- Setting an annual budget.
- Produce regular forecasts.
- Carefully study business trends and compare them to past results.
- Advise how performance can be improved and explore potential growth scenarios.
- Compare actuals figures against budgeted figures.
- Regularly update forecasts to reflect actual performance.
- Carefully advice on strategic decisions.
- Provide OnDemand FP&A reports highlighting business performance, with the help of clearly defined graphs and easy to understand language.
- Help in creating Key performance indicators, both financial and non-financial.
Financial planning and analysis are fundamental to business success as it will allow in effectively managing cash flow. It will further make the best use of capital and help plan financially to ensure its strategic goals are met.