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| Friday 30 July 2010 |
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Management Accounts |
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What sets us apart from other bookkeepers is that we thoroughly check and then personally sign every single set of Management Accounts we produce, using one of our five qualified accountants. The reason is simple - it's too much to expect even our very experienced bookkeepers to be responsible for the constant integrity of what we report - it's not always that easy! In fact in many instances it's approaching difficult, especially with inherited rubbish.
This thorough checking is detailed - for instance, the bank reconciliation is examined together with a long list of other items such as accruals & prepayments, wages, PAYE control, suspense accounts, hire purchase etc. in addition to specific points raised by the book-keeper.
What are Management Accounts?
The equivalent of the year end accounts but every month - see below for samples.
We tailor Management Accounts to specific client requirements in terms of the wording, composition and layout. The objective is that our clients both understand and use the accounts to improve their profitability and boost the value of their business.
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Sample Management Accounts |
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Description |
Last Updated |
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Benefits of Management Accounts
- Checks promptly the progress and health of the business by reporting gross margins, net profit and the Balance Sheet
- Focuses on debtors, hence encouraging better debt collection, less bad debts and improved cash flow which will assist expansion
- Identifies overheads to allow greater control of costs
- Allows segmented reporting e.g. by product group or by site
- Satisfies requirements of external investors for overdrafts and loans
- Reports gross profit percentages which are often a key performance indicator
- A comparison Period and Year to Date with the same month in the previous year. This is of great benefit in measuring performance
- Compares with budgets showing variances Period and Year to Date.
Effect of no Management Accounts
We liken not having management accounts to driving a car in complete darkness – the driver knows the approximate speed (sales) from the wind noise and vibrations but does not know the direction the car is driving (profitability). We MEASURE so you IMPROVE.
Year End
We act not as accountants but as professional bookkeepers working closely with our clients' accountants whose life becomes easier as we improve the quality of the accounting system and prepare draft year end accounts.
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