{"id":19849,"date":"2022-12-15T15:05:19","date_gmt":"2022-12-15T15:05:19","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/blogs\/?p=19849"},"modified":"2022-12-15T15:05:20","modified_gmt":"2022-12-15T15:05:20","slug":"how-can-i-make-best-use-of-management-accounts","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/blogs\/how-can-i-make-best-use-of-management-accounts\/","title":{"rendered":"How can I make best use of management accounts?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2022\/12\/M.T.-Blog-Graphic-02.12.2022-2-1024x576.png\" alt=\"\" class=\"wp-image-19850\" srcset=\"https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2022\/12\/M.T.-Blog-Graphic-02.12.2022-2-1024x576.png 1024w, https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2022\/12\/M.T.-Blog-Graphic-02.12.2022-2-300x169.png 300w, https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2022\/12\/M.T.-Blog-Graphic-02.12.2022-2-768x432.png 768w, https:\/\/www.moorethompson.co.uk\/blogs\/wp-content\/uploads\/2022\/12\/M.T.-Blog-Graphic-02.12.2022-2.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>As a business owner, the financial health of your company plays a key part in every decision you make.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>Management accounts are a great way to review the financial standing of your company, allowing you to make any necessary alterations and place your attention where it is needed most.<\/p>\n\n\n\n<p>So, how can you maximise these reports and utilise them to aid business growth?<\/p>\n\n\n\n<p><strong>Tailor to your business<\/strong><\/p>\n\n\n\n<p>Simply put, management accounts will work best when they have been tailored to the needs of your individual business.<\/p>\n\n\n\n<p>No company is the same, so think about what works for you and adapt your management accounts to suit this.<\/p>\n\n\n\n<p><strong>Key Performance Indicators (KPIs)<\/strong><\/p>\n\n\n\n<p>KPIs are commonly included in management accounts. The goal with these is to determine which areas your business is performing best in.<\/p>\n\n\n\n<p>This allows you to monitor success, as well as establish where improvement is needed.<\/p>\n\n\n\n<p>By utilising KPIs, you can calculate how much time it is taking you to reach your goals, and if it is feasible.<\/p>\n\n\n\n<p>The type of KPIs you might wish to include in your management accounts include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Employee performance<\/li><li>Customer\/client invoicing<\/li><li>Departmental performance.<\/li><\/ul>\n\n\n\n<p><strong>Profit and Loss<\/strong><\/p>\n\n\n\n<p>A profit and loss statement should be contained within your management accounts, as this details the profits and expenses you have occurred in your business.<\/p>\n\n\n\n<p>By doing so, you can evaluate where you are making money, as opposed to where you are losing it.<\/p>\n\n\n\n<p>Your profit and loss statement may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Comparison<\/li><li>Departmental assessment<\/li><li>Rates of sales<\/li><li>Gross profit margins.<\/li><\/ul>\n\n\n\n<p><strong>Balance Sheet<\/strong><\/p>\n\n\n\n<p>A balance sheet is a useful snapshot of the financial health of your business at any one time. This is typically comprised of assets, current liabilities, and sources of finance.<\/p>\n\n\n\n<p>Understanding the importance of what your business owns against how much it owes will help you effectively handle your debts.<\/p>\n\n\n\n<p>Keep an eye out for the next blog in our series, where we will answer the question \u201cHow can I read a set of management accounts?\u201d<\/p>\n\n\n\n<p><strong>For help and advice, contact us today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As a business owner, the financial health of your company plays a key part in every decision you make.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[26],"tags":[],"class_list":["post-19849","post","type-post","status-publish","format-standard","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/19849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/comments?post=19849"}],"version-history":[{"count":1,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/19849\/revisions"}],"predecessor-version":[{"id":19851,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/19849\/revisions\/19851"}],"wp:attachment":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/media?parent=19849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/categories?post=19849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/tags?post=19849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}