{"id":4966,"date":"2022-12-13T16:03:13","date_gmt":"2022-12-13T16:03:13","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=4966"},"modified":"2022-12-13T16:03:18","modified_gmt":"2022-12-13T16:03:18","slug":"how-can-i-make-best-use-of-management-accounts","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/how-can-i-make-best-use-of-management-accounts\/","title":{"rendered":"How can I make best use of management accounts?"},"content":{"rendered":"<p>As a business owner, the financial health of your company plays a key part in every decision you make.<\/p>\n<p><!--more--><\/p>\n<p>Management accounts are a great way to review the financial standing of your company, allowing you to make any necessary alterations and place your attention where it is needed most.<\/p>\n<p>So, how can you maximise these reports and utilise them to aid business growth?<\/p>\n<p><strong>Tailor to your business<\/strong><\/p>\n<p>Simply put, management accounts will work best when they have been tailored to the needs of your individual business.<\/p>\n<p>No company is the same, so think about what works for you and adapt your management accounts to suit this.<\/p>\n<p><strong>Key Performance Indicators (KPIs)<\/strong><\/p>\n<p>KPIs are commonly included in management accounts. The goal with these is to determine which areas your business is performing best in.<\/p>\n<p>This allows you to monitor success, as well as establish where improvement is needed.<\/p>\n<p>By utilising KPIs, you can calculate how much time it is taking you to reach your goals, and if it is feasible.<\/p>\n<p>The type of KPIs you might wish to include in your management accounts include:<\/p>\n<ul>\n<li>Employee performance<\/li>\n<li>Customer\/client invoicing<\/li>\n<li>Departmental performance.<\/li>\n<\/ul>\n<p><strong>Profit and Loss<\/strong><\/p>\n<p>A profit and loss statement should be contained within your management accounts, as this details the profits and expenses you have occurred in your business.<\/p>\n<p>By doing so, you can evaluate where you are making money, as opposed to where you are losing it.<\/p>\n<p>Your profit and loss statement may include:<\/p>\n<ul>\n<li>Comparison<\/li>\n<li>Departmental assessment<\/li>\n<li>Rates of sales<\/li>\n<li>Gross profit margins.<\/li>\n<\/ul>\n<p><strong>Balance Sheet<\/strong><\/p>\n<p>A balance sheet is a useful snapshot of the financial health of your business at any one time. This is typically comprised of assets, current liabilities, and sources of finance.<\/p>\n<p>Understanding the importance of what your business owns against how much it owes will help you effectively handle your debts.<\/p>\n<p>Keep an eye out for the next blog in our series, where we will answer the question \u201cHow can I read a set of management accounts?\u201d<\/p>\n<p><strong>For help and advice, contact us today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As a business owner, the financial health of your company plays a key part in every decision you make.<\/p>\n","protected":false},"author":2,"featured_media":4968,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,30,56,31],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4966"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=4966"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4966\/revisions"}],"predecessor-version":[{"id":4967,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4966\/revisions\/4967"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/4968"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=4966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=4966"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=4966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}