Management accounts

Many businesses require management accounts either monthly or quarterly.

Benefits will include:

  • Retail business need to know they are making the right margin on their various different product group; e.g. Tobacco is very different to Grocery.
  • Parts used on cars vs. parts purchased will help to ensure they are booked to customers; e.g. with a car repair garage.
  • Labour charges to customers with staff wages ensure you are operating efficiently and staffed correctly. Having too many staff can be costly; having too few staff may not be efficient. This could also highlight productivity issues, hours billed to clients vs. wages hours.
  • Efficient tax planning, particularly with company profits earned & dividends.
  • Good stock control with management accounts can also determine if one has a pilfering issue.

A business owner simply cannot afford to wait until the accounts are prepared after the year end to learn they have been operating at a loss for 12-months+.

There is obviously an additional cost which is usually far outweighed by the benefits. Good software will be an asset. If you are interested in management accounts, please contact me to discuss further, as business vary too widely to have any standard approach.