Management Accounts
A lot of small businesses wait until their year end accounts have been prepared before seeing how they have performed in the previous twelve months. This means that any notable changes in trading will have occurred some time ago, making it far more difficult to rectify any adverse situation.
The Book Monitor can prepare monthly or quarterly management accounts, enabling you to see how your business is performing throughout the year. Management accounts can highlight areas that may need attention or need to be changed and can show you key performance indicators (KPI's) which are used to monitor the performance of your business. Management accounts can also highlight seasonal changes in your business, so you can be prepared for any slower periods in the year.
Frequently Asked Questions:
Q: What are management accounts?
A: Management accounts are prepared on a monthly or quarterly basis and give you an overview of how your company is currently trading.
Q: What is the point of having management accounts prepared?
A: You can compare months/quarters against each other to establish things such as trends during the year and determine whether one month/season is more successful than another. If you have set up a budget for the year this can be used to compare how your company has performed against how you anticipated your company to perform during the year.