What are management accounts, and do you need them?
Management accounts are a type of financial report providing insight on the financial performance of your business. They are called management accounts because they are normally used by business owners and managers to make strategic decisions about the business.
Why we produce management accounts
Whereas the statutory accounts Cardens produces for you every year must follow a set format, management accounts can be in whatever format works for you. Commonly they also include Key Performance Indicators (KPIs) which allow you to quickly monitor the financial health of your business. For example, sales growth on last year or gross profit margin).
The other big difference is that they can be produced as often as you need them. Most companies will either produce monthly or quarterly management accounts to check on the financial performance of the business.
Another key aspect of these accounts is having a budget or goal that you want to measure the actual financials against. This will help you know what a good result looks like and you can quickly highlight any areas for concern.
Choosing the right accounts for your business
Unless you are a business owner doing your own bookkeeping, I would recommend that you start looking at management accounts so that you have a good understanding of your business’ finances. Without this information you are going to be making strategic decisions without having all the information you need.
Here at Cardens, we have a team of management accountants who specialise in producing these reports for clients. We work with our clients to put together a plan of what information they need to effectively run their business. Then, we make sure that they get this information in a timely and accurate manner. If you are interested in this service, please drop us an email at and someone will be in touch.
