What are management accounts
and do statutory accounts include?
Every month or every quarter, a set of customised or standard financial reports is prepared by your company’s accounting department to assist you in tracking the progress of your business.
Unlike Statutory Accounts (which are required by the Government and are prepared after the year-end), Management Accounts focus on your business requirements, such as KPI’s, Balance sheets, Profit and Loss, and an Executive summary.
Business owners and managers use them to track key performance indicators and make daily and strategic decisions about their financial health.
These reports could help play an essential role in planning for growth and help secure a loan if you require one.
Further information about management accounts
Management accounts are vital in running and monitoring your small business or organisation and highlight several critical indicators regarding performance and whether you are achieving your goals within the required timeframes.
You can access:
- You have a turnover lower than £632,000
- Your balance sheet shows a maximum of £316,000 or less
- You have 10 employees or less
In summary, this can be a powerful tool to help you run your small business to its full potential and determine your business successes and where you may need to make improvements or new financial decisions.
Using Xero for your management accountants
The Perks
As well as helping you run your business finances on a day-to-day basis, Xero also provides a platform for making critical business decisions – holding the data and reports you need to produce regular management accounts. In addition, we can help interpret the data and map out the process of evaluating your financial health.
If you are currently using Xero Accounting software and think this would be beneficial to your business, please do contact us & we will be glad to help.
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