{"id":19774,"date":"2022-10-24T15:36:03","date_gmt":"2022-10-24T15:36:03","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/blogs\/?p=19774"},"modified":"2022-10-24T15:36:05","modified_gmt":"2022-10-24T15:36:05","slug":"management-accounts-why-do-you-need-them","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/blogs\/management-accounts-why-do-you-need-them\/","title":{"rendered":"Management Accounts: Why do you need them?"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Management accounts are a set of regular reports created to provide insight on the financial performance of your business.<\/p>\n\n\n\n\n\n\n\n

Generally produced monthly or quarterly, they are essential to how you operate, allowing a better understanding of your current financial position, and helping you ensure you are on the right track to achieving your goals and not facing new risks.<\/p>\n\n\n\n

Despite this, many businesses do not have management accounts, or understand the benefits that they bring.<\/p>\n\n\n\n

Why are management accounts beneficial?<\/strong><\/p>\n\n\n\n

It makes good business sense to have management accounts, so that you are aware of your current path and the direction in which you are heading.<\/p>\n\n\n\n

They allow you to evaluate past performance, as well as prevent cash flow troubles that may lie ahead, while also highlighting what needs attention to improve and fuel growth.<\/p>\n\n\n\n

Analysing your profits and losses, cash flow and liabilities can help you to spot patterns, predict future revenue and set realistic objectives.<\/p>\n\n\n\n

Plus, a good set of management accounts is always desirable for potential investors, as it provides a window into your financial health.<\/p>\n\n\n\n

What should be included in a management account?<\/strong><\/p>\n\n\n\n

Typically used by owners, managers, investors, banks, tax planners and more, there is a variety of information that should be included, such as:<\/p>\n\n\n\n

Balance sheet<\/strong> \u2013 This summarises the assets of your company\u2019s owners, its liabilities, such as debts, and the value of its owner\u2019s investment known as shareholders\u2019 equity.<\/p>\n\n\n\n

Profit and loss statement<\/strong> \u2013 This allows you to assess monthly revenue and understand your level of profitability.<\/p>\n\n\n\n

Key performance indicators (KPIs)<\/strong> – KPIs are the goals you are working towards, such as growth in revenue, gross profit margin, inventory turnover, and how many sales you wish to achieve.<\/p>\n\n\n\n

Cash flow statement<\/strong> –  When paired with cash flow forecasting, a cash flow statement tells you how much cash balance to expect in the future and how much loss you will incur.<\/p>\n\n\n\n

We can help you prepare monthly or quarterly management accounts, providing clear information and guidance every step of the way. Contact our team today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Management accounts are a set of regular reports created to provide insight on the financial performance of your business.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45,26],"tags":[],"class_list":["post-19774","post","type-post","status-publish","format-standard","hentry","category-accountancy","category-blog"],"yoast_head":"\nManagement Accounts: Why do you need them? - Moore Thompson<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.moorethompson.co.uk\/blogs\/management-accounts-why-do-you-need-them\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Management Accounts: Why do you need them?\" \/>\n<meta property=\"og:description\" content=\"Management accounts are a set of regular reports created to provide insight on the financial performance of your business.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.moorethompson.co.uk\/blogs\/management-accounts-why-do-you-need-them\/\" \/>\n<meta property=\"og:site_name\" content=\"Moore Thompson\" \/>\n<meta property=\"article:published_time\" content=\"2022-10-24T15:36:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-10-24T15:36:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2022\/10\/M.T.-Blog-Graphic-24.10.2022.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Management Accounts: Why do you need them?\" \/>\n<meta name=\"twitter:description\" content=\"Management accounts are a set of regular reports created to provide insight on the financial performance of your business.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2022\/10\/M.T.-Blog-Graphic-24.10.2022.png\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.moorethompson.co.uk\/blogs\/management-accounts-why-do-you-need-them\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.moorethompson.co.uk\/blogs\/management-accounts-why-do-you-need-them\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.moorethompson.co.uk\/blogs\/#\/schema\/person\/0d9cc808e7eb5eb75ce773e69c3d97fb\"},\"headline\":\"Management Accounts: Why do you need them?\",\"datePublished\":\"2022-10-24T15:36:03+00:00\",\"dateModified\":\"2022-10-24T15:36:05+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.moorethompson.co.uk\/blogs\/management-accounts-why-do-you-need-them\/\"},\"wordCount\":350,\"image\":{\"@id\":\"https:\/\/www.moorethompson.co.uk\/blogs\/management-accounts-why-do-you-need-them\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2022\/10\/M.T.-Blog-Graphic-24.10.2022-1024x576.png\",\"articleSection\":[\"Accountancy\",\"Blog\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.moorethompson.co.uk\/blogs\/management-accounts-why-do-you-need-them\/\",\"url\":\"https:\/\/www.moorethompson.co.uk\/blogs\/management-accounts-why-do-you-need-them\/\",\"name\":\"Management Accounts: Why do you need them? 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