Management Accounts

profitRiskLoss

You may be looking here with a good idea of what management accounts are, or you may not really have any idea. To be honest, we believe that very few people really know.

The ever reliable Wikipedia defines it like this:

“Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions.”

That’s a good description, but to reduce it even further they are accounts that will be useful to you to run your business.

At Making Sense of Numbers we can help you decide whether you need management accounts in your business (you do!), but most importantly what information would be useful.

It is quite possible that the reports that come directly from your bookkeeping package are quite enough, or it may be that you want something more than that.

We can show you how to access that information, we can set up a template for you to run yourself, we can do the whole lot for you.

It is impossible to publish a simple price for this service. We have customers that can spend from £50 per month to those that are spending several hundred pounds. What we are determined to do is to provide information that is useful to you and your business.

Let’s start by having an informal chat – check out our free consultation offer.

Other ‘management accounts’ products that may be of interest:

  • Profit and Loss Budget – we will work together to put together a simple budget for your business. You can then use this to assess what income (dividend or drawing) can be realistically attained. We include the ability for you to go away and change the key assumptions and see what this does to the result. Typically £250 plus VAT
  • Cashflow forecast – one of the most common questions we get asked is whether there is a tool for producing a forecast of cashflow. Well we have looked and haven’t found a decent one yet. The problem is to be great it has to be flexible. So we build a bespoke template for our customers. Once it is up and running you can manage it yourself, or we can do it for you. Typically £250 plus VAT to set up the template
  • Systems Review – together we go through various financial operational aspects of your business in a questionnaire format – it should take about two hours. We will then produce a report scoring those parts of your business as ‘best practice’, ‘good’, ‘room for improvement’ or ‘urgent action required’ – Price £250 plus VAT
  • Full budget and forecast – the profit and loss forecast just looks at one element; you may want to do that in more detail and link it to a balance sheet forecast and a long term cashflow forecast incorporating capital expenditure, bank loan repayments and the like. This will be done using advanced Sage software – Typical Price £1,000 + VAT
  • Business Plan – why do you want a business plan? Is it because you are borrowing some money, or because you want an active road map of where you and the business are going? (You wouldn’t set off to a new holiday destination without checking how to get there first.) We aren’t fans of business plans for the sake of it, so we will really check if it’s the right thing. We also believe that the numbers should be the last thing to go into the plan. Full business plans start from £1,500 plus VAT.

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