Management Accounts
What we deliver in management accounts
Good management accounts are the backbone of good business decisions. That’s why we strive to provide you with regular, accurate management accounts. Most clients prefer these to be sent every quarter which can give a better picture than with monthly fluctuations, however we do also provide these management accounts on a monthly basis for those who prefer. These management accounts comprise the profit and loss account, balance sheet, aged debtors and aged creditors, giving a sound overview of the business performance, with comparative figures to be able to spot any trends or areas of note.
Ahead of sending these, we will fully review the accounts and provide our commentary to help our clients makes sense of the numbers, which can otherwise feel like a minefield. In addition, our with our advisory services we are able to offer budgeting, cash flow forecasting and key performance insights into your data based on the real numbers, market insights and competitor analysis to help you really understand where your business is at.
Why management accounts matter
Without good management accounts, any decision you make could be a risk. Whether this is planning for a new staff member, a new asset purchase or simply being able to take more money out of your business for a special holiday, having the confidence in these decisions is essential. Many accountants still do not finalise their clients accounts until months after the year end. This means opportunities for tax planning are lost and any poor decisions can then be “baked in” to the business making these difficult to change. We are different to this. We manage your bookkeeping either on a weekly or monthly basis. We then take a detailed look at your management accounts at least every quarter and provide these for your attention. These accounts are prepared with the care and accuracy of a final set of year end accounts giving you confidence in the figures and the ability to make good business decisions based on these.
Not only does this help spot potential issues before they become a bigger problem, but it also allows us to help you make good decisions for tax planning, for example whether to buy that machine now or in the future to ensure the best tax planning opportunities. This also helps you plan for growth, knowing when new staff members may be needed, or if any contracts need to be reviewed to cover rising overheads.
READY TO CHAT?
You can contact us via:
Pera Business Park
Nottingham Road
Melton Mowbray
LE13 0PB
HOW DO WE HELP?
We started to act for Carpets of Choice when the company commenced trading in 2009 with the owner Tim taking the leap to start his own business. We helped the client set up systems to record income and expenditure. As the business grew we set up various systems including setting up the client in Xero in 2018 as well setting up a payroll system as the business grew to take on staff.
We also assisting as the business transferred to the new generation of the business with son Matt taking over the day to day running. During this period we looked into small tweaks such as ensuring the business was correctly charging for miscellaneous services and to help ensure their profit margins remained consistent in spite of rising costs.
The business continues to go from strength to strength and we continue to monitor and maintain the accounts each month to pick up and fluctuations and to help to plan for the continued success of the business.
Increase you profit margins too
We are here in Leicestershire and beyond:
Whilst the majority of our clients are located within 10 miles of us, we do help clients in a range of locations including:
- Leicester
- Loughborough
- Oakham
- Nottinghamshire
The three ways clients use us
Monthly management reporting.
Some clients are so knowledgeable of their business that like to have accurate management information each month. This helps them make good decisions in industries with volatile pricing to ensure margins are consistent and the business profitability is stable.
Quarterly reviews.
By far the most popular options, we provide timely management accounts with commentary which we find the perfect balance in time. These provide enough time for peaks and troughs to even out whilst still being current and relevant to any decision that need to be made. These also help to flag and potential problematic customers before they become a bigger problem which could put the business at risk.
One off performance reviews.
Occasionally clients are so confident in their own production and analysis of their management information they are happy to prepare this themselves, but like the option of being able to reach out for our expert advise and analysis if the figures to ensure their business is on the right track and with benchmark analysis to ensure they are where they should be.
Common reporting problems we solve
- The lack of business knowledge. Many businesses go years without having accurate business financial information, with a cursory view of the final accounts the only insight they have into the business performance, commonly discussed with an accountant using technical language that is not easy to understand. By having good financial information you are able to make the correct business decisions.
- Poor quality management information. Whilst businesses or accountants will sometimes what they claim are management accounts, these are often poor quality with incomplete bookkeeping and no accounting adjustments. This could show as an annual insurance premium appearing as a cost in one month producing a huge loss in that period when it should be allocated across the twelve month period, or a significant increase in stock or work in progress not reflected in the accounts giving a false picture.
- Lack of commentary. Whilst having good financial information is great, understanding what this means is essential. Imagine being given the best book in the world, but in a language you don’t speak! We provide key analysis of how the figures affect your business.
- Poor cash flow visibility. Being profitable is great, but if your customers are regularly taking 60-90 days to pay, this could cause huge problems with things like VAT payments being missed because invoices are unpaid. We can help flag where this could be an issue, allowing you to get finance in place where needed to ensure the business is not hampered by its growth.
WHY CHOOSE LYFE ACCOUNTANTS FOR YOUR PAYROLL?
We love seeing business grow and become successful. Since starting in 2007, we have supported many local and national businesses for their accountancy and business needs. Over time, with advances in accountancy software, we have been able to change the emphasis of our work from just completing the statutory accounts and tax returns to building a business which offers holistic business support guiding businesses from preparing regular management accounts to cash flow forecasts and full financial action plans.
By using the latest technology, and keeping a keen eye on the market for new software which will make our clients job easier, we are able to help our clients meet any challenges they come across, our clients are prepared for any taxes and changes in legislation, and we are on hand throughout their business journey, helping clients grow, thrive and achieve their goals, whether financial or non-financial.
We would love to help your business too.
Get the best personal service in Leicestershire
Pension setup
On time, every time
Contributions
Owner wage
FREQUENTLY ASKED QUESTIONS
We provide quarterly management accounts to the majority of our clients which is a nice balance of information without becoming overpowering and losing their effectiveness, however we can also provide these on a monthly basis where this would be useful.
Typically this will consist of the profit and loss account, balance sheet showing the position at that date, aged debtors and aged creditors. These show a clear picture of the business performance in clear, understandable reports allowing you to consider all important aspects of the business.
Of course. As well as the commentary, many clients like to pop in and go over the numbers over a cup of tea which gives us the chance to +not only discuss the financial information but also you plans and concerns to see how we can help with these.
Absolutely! The accounts are only as useful as your requirements, so if you would prefer to how income split between categories, just let us know. Alternatively, we can help set up tracking categories to split the business by say, location or salesperson, giving huge insights into areas that are important to you.
Xero is great for bookkeeping, but there is a huge difference between bookkeeping and preparing the accounts. Whilst Xero will help you monitor some information, this will be basic without the necessary accounting adjustments which make the accounts accurate and meaningful.
Definitely. By having good financial information you are showing your lender you know exactly what is needed for your business and why. Most lenders will want to see how the business is performing and so being able to provide this information quickly and accurately will help speed up the application and help with the process.
Yes, with our advisory services we are able to offer detailed benchmarking and competitor analysis to really help you understand your business position.
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