A lot of small business owners wait until their year end accounts have been prepared before seeing how their business has performed in the previous twelve months. This means that any notable changes in trading may have occurred some time ago, making it far more difficult to rectify any adverse situation and take advantage of opportunities.
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 during 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 similar time periods (e.g. months/quarters) against each other to determine whether one month/season is more successful than another or establish things such as trends during the year. 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 would perform during the year.