Management Accounts

Improving business

profitability and growth

“The real value of accounting cannot be understood without Management Accounts which unlocks the story behind your business”  Jahan Aslam

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  • Industry & business specific customised reporting
  • Dedicated qualified Accountant
  • Complete Bookkeeping service
  • And much more
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What are management accounts and why do I need them

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.

What are management accounts and why do I need them
Further information about management accounts

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:

  • Staff and management performance
  • Which customers are providing the most business?
  • Cashflow & billing
  • Pinpointing your business’s ‘star performers’ as well as those who are underperforming.

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.

Get In Touch

Looking for a bespoke management reporting for your business? Speak to one of our specialist!

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Using Xero for your management accountants

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.

 

Difference between management accounts
and financial statutory accounts

Statutory accountsManagement accounts
AggregationConsider the entire businessConsider the specifics of the business, such as the profits earned by a product
EfficiencyConsider the efficiency of the business as the report is about profitabilityTake into account the specifics in order to help understand the root of the problem and find its solution.
Proven InformationRequire precise recordsWork on actual, estimates and approximation
Reporting FocusReports for within and outside the company focused on financesReports mainly for within the company focused on operations
StandardsNeed to meet certain standards set by Companies HouseDo not have to comply with any standards
TimeTake into account everything that the business has achievedHave a future orientation

What goes in management reporting packs

Profit & Loss (P&L) shows the performance of a business in a given period. It would typically show a summary of Income received and types of expenses incurred.Every business is unique, so that the reporting pack will differ from business to business. For example, a retailer with multiple stores may want to see Income & Expenses split by each store. In contrast, a construction business may want to see the profitability of each project it undertakes.Therefore, P&L produced for management should be tailor-made, keeping in mind the nature of business, the level of detail required, the frequency, and the layout.

A Balance Sheet shows the financial position at any given point in time. It should be prepared with notes to help indicate key business ratios, such as liquidity ratios, debtor days, inventory days etc., to highlight areas of risk to help with advanced cash flow planning.

Depending on the industry or nature of your business, we can work with the management team to determine key performance indicators. These will then be benchmarked against the industry and regularly reviewed to see your company's health.

Aged Debtors report summarises all your business debtors (i.e. the people who owe you money). It shows how much is owed and how long the money has been outstanding. It is a vital report as it shows your cash flow and how to reduce any bad debts risks.Aged Creditors report summarises creditors (i.e. the people to whom you owe money). When effectively managed, this can provide essential financial information to help you determine how much and when to pay your suppliers.
management reporting packs

Why choose us?

Our management accountants are fully qualified and have extensive experience advising small businesses. One of our core values is customer service. We believe a good management accountant should provide reports on-demand and recommend which reports you should generate to help inform and drive future investment, cash flow, and strategic decisions.

We will also add value by improving the informative business tools (particularly those produced using real-time data from Xero) is, therefore, key to keeping a good eye on your finances. If you have an accountancy or tax issue, please do talk it through with us on 020 8577 0200 as there is a good chance we have assisted with this issue before and will be able to help you.

“One size doesn’t fit all” – It is essential to plan and determine what information will be helpful to help your business succeed. Our accountant will work closely with you to identify your business requirements and develop an effective reporting plan. We can provide monthly or quarterly reports.

“A profitable business requires more than traditional accounting”.We are modern accountants who take pride in being one of the leading accounting firms in the UK for business process automation and systems integrations. We believe this knowledge plays a vital role in helping businesses develop better reporting.

We support your business
at each growth stage

Start-up stage

If your business is an ‘early shoots’ start-up, a simple and basic set of reporting would be enough as there probably isn’t much data to evaluate at this stage. Analysing the following will do the job for you:

  • Summary of accounts
  • Profit and Loss
  • Balance Sheet

Covering these areas will give you a good insight into the basics of your business so you can make informed decisions based on your current financial standing. As a result, you will move towards growth much faster. Moreover, when it is time for you to make a significant investment, you can change the indicators to be covered in the reporting pack.

Start-up stage
Growing Stage

Growing Stage

As your business grows and develops, you may consider making some investments. As a result, you will need to be aware of your cash flow. Generating management accounts reports can help you assess your income and outgoing expenditure so you have a better understanding of the money you need to pay out and receive.

The reporting may need to move to the next level as you will need to include factors that will enable you to understand better the money being spent. The following will do the job at this stage:

  • Payables
  • Receivables
  • Budget
  • Cashflow

Mature Stage

This is the stage where you need to include more targeted and complex detailed reports and must include the following:

  • Key Performance Indicators (KPIs)
  • Shareholders Loans Transactions
  • Accruals and prepayments
  • Segmental/departmental analysis
  • Profit & Loss actual vs. last year and/or forecast
Mature Stage

Meet our client specialist

Rima Abou

Rima Abou

Client Accountant

“Hi there, I am a Client Accountant here at Fusion Accountants handling a portfolio of small to medium size entities across a range of industries including, Hospitality, IT consultancy, Manufacturing, Construction (CIS) and E-commerce.

Working closely with my clients and understanding their business is key when it comes to delivering value-add account reporting that is aimed to provide the business with the tool to make key decisions.

I will be able to help you with the following:

  • Historical trading.
  • Forecasts, cashflow & financial health
  • Key performance indicators
  • Cost analysis  
  • Management accounting service 

“Outside work, I enjoy cooking international dishes, spending quality time with my Husband and three children.”

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FAQ 's

The preparation of your small business Management Accounts typically includes a profit and loss account, balance sheet, cash flow statement and a short report. You can put the accounts together yourself, or more realistically, an accountant can do it for you.

Management accounts form a financial report used by business owners and management for day-to-day and strategic decision making. They are produced, usually, on a monthly or quarterly basis, and provide insight into the current financial health of a business by tracking various key performance indicators.

The primary purpose of management accounting is to analyse information. They determine problematic areas and develop ways to correct them. so you can run your business to its full potential and determine your business successes and highlight where you may need to make improvements or make new financial decisions.

Financial accounting is focused on creating financial statements to be shared internal and external stakeholders and the public. Managerial accounting focuses on operational reporting to be shared within a company.