Management Accounts and Dashboards
What are Management Accounts?Management accounts are what they say they are. Accounts which are prepared with the aim of helping managers make important business decisions, whilst having the benefit of full financial information. Many small businesses rely solely on the end of year accounts to understand their financial situation and as a result probably miss a number of opportunities or make bad decisions, simply because they did not have access to accurate, timely, financial information. Management accounts can be produced monthly, quarterly, half-yearly or any other period that is relevant to you.
Most businesses receive a Profit and Loss and Balance sheet relating to the previous accounting year, from their accountants. The only problem with end of year accounts, is that the first period on those accounts can be 20+ months from the current month, which makes the information less useful as a tool on which to base business decisions. A lot of small businesses only use their end of year accounts to compute their tax liability and have to pay a lot of money for the privilege! Remember, the information you get out, is only as good as the information you put in, therefore ensure your bookkeeping must be correct or use a certified bookkeeper to be sure!
What are Dashboards?
Dashboards are a popular method of displaying financial information in an easy to understand format.
We will work with you to understand what key figures drives the performance of your business, which we call "Figure that Matter" and then present them in an easy to understand format - for example charts and graphs.
This allows for quick decision making for fast growing and entrepreneurial businesses.
Dashboards are used by many large companies, and until recently it has been a privileged for the big companies. However, The Local Bookkeeper is now introducing this service to small businesses.
- Reduces your need to understand accounting
- Customised to your business
- You can spot trends
- Shows your business's performance on one page
- Can easily integrate non financial information
How can management accounts help improve your business?
- Many business have commercial loans with retails banks, our service means you meet your contractual obligations of providing management accounts on a quarterly basis.
- Having regular reports allows you to examine your cash flow, observe trends and seek additional capital injections (should it be required), based on accurate forecasts.
- By looking at a profit and loss statement you can very quickly see where your business stands in terms of profitability, on a regular basis, giving you the right information to make changes, if necessary.
- Allows you to predict future events based on historical trend information, giving you an edge over your competitors.