Management Accounts
There is no legal requirement to prepare management accounts, but it is hard to run a business effectively without them; most companies, therefore, produce them on a monthly or quarterly basis. The purpose of management accounts is to analyse recent historical performance, and they usually include forward-looking elements such as sales, cash flow and profit forecasts. The analysis is usually compared to forecasts and budgets that were produced at the start of the year.
One objective of management accounts is to provide accurate information to identify Key Performing areas of the business, but there are other reasons to have them, including:
- Understanding the behaviour and performance of the business
- Shaping the business with sound advice and guidance
- Allow a cash flow forecast
- Reveal margins, costs, and break-even points, thus making sound financial decisions
- Uncovering non - or under-performing areas of the business
OTIC Global recognise the importance of management accounts and assist clients by providing a variety of management reports, such as profit and loss, asset liability, and tax; we look at how the KPIs are performing, and work out a gross profitability report. With the help of a management report, management can then make informed decisions and shape the right future for the business.
OTIC Global are specialist in designing and implementing management reporting systems. If you would like this system for your company please indicate on your subscription form or call us today on 07507 602279 and one of our team members will be please to discuss this with you.
