Is your business performing as well as you think it is?
For many of our clients who have a very straightforward business, it is relatively easy for them to assess how well their business is performing.
For more complex businesses however it is more difficult as there can be many factors and variables to take into account.
In these circumstances, we can provide clients with useful and current information on which to assess how their business is performing by producing regular management accounts and reports. These are usually quarterly although they can be as often as required and fill in the 12 months reporting gap between the year end accounts.
A whole year between producing any kind of accounting reports is a long time. After all, if your business is not making as much profit as you think it should then you need to know as soon as possible. You also need current information and the problem with waiting until the year end accounts are complete is that even if there are done very quickly some of the data which makes up the figures will already be over 12 months old.
If measures are put in place to resolve any issues affecting profitability then equally you need data on a timely basis to assess what effects these are having.
Year end accounts can also be quite rigid in their format and the information they show whereas management accounts can be tailored to show the information which, as the business owner or manager, is important to you.
Another benefit of preparing management accounts for clients is that it enables us to estimate any tax liabilities as they accrue meaning businesses can plan for them much more effectively than waiting until the year end.