What are management accounts?

Few truly understand what it means to produce proper management accounts (MA). Some would have you believe MAs are like the accounts you get at the end of the year but not quite as accurate. This and similar views were expressed when we recently did some research. All too often we see reports entitled management accounts which range from simple Sage printouts to nothing more than a reproduction of the annual format, but for a shorter period.

A True Definition

This approach falls very wide of the mark. True MA should be tailored to the exact needs of a business and provide what is required to drive things forwards. There are no hard and fast rules but a good management accountant will help the business owner identify all key areas. It is only by doing this correctly that management can create effective financial control.

Allowing for flexibility

Only information pertinent should be included and good MA should be flexible enough to allow changes to the way the business operates over time. Comparisons to budget, previous years and even short term targets may all be included.

Our Experience

At BBS we have a wealth of experience gained over many years to help any business owner get the best from their financial reporting. The move to a system of more regular reporting can be stressful, time consuming and expensive if not handled correctly. There are a multitude of factors ranging from the information systems in use to the personalities operating them which can affect the successful introduction of MA. It always pays to use an expert.