A lot of small business owners wait until their year end accounts have been prepared before seeing how their business performed during the financial year. 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 any 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 performing.
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/quarter is more successful than another or establish things such as trends during the year. You can also compare how your busines has performed from one year to the next, identifying whether the business has grown or not. 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.