{"id":5393,"date":"2023-10-11T11:34:58","date_gmt":"2023-10-11T11:34:58","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=5393"},"modified":"2023-10-11T11:35:00","modified_gmt":"2023-10-11T11:35:00","slug":"how-management-accounts-can-help-your-business","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/how-management-accounts-can-help-your-business\/","title":{"rendered":"How management accounts can help your business"},"content":{"rendered":"<p>Management accounts are vital in keeping on top of your business\u2019s performance. But what are they, and how do they work?<\/p>\n<p><!--more--><\/p>\n<p>Management accounts are a key tool for keeping on top of the financial data of your business.<\/p>\n<p>Whilst statutory end-of-year accounts are necessary for compliance, management accounts can be tailored to reveal key information about your business.<\/p>\n<p>Management accounts are also typically done on a monthly or quarterly basis, allowing you to have an accurate review of your business\u2019s current finances in real-time.<\/p>\n<p>Management accounts can contain information about:<\/p>\n<ul>\n<li>Key performance indicators (KPIs) that are relevant to your business<\/li>\n<li>Profit and loss<\/li>\n<li>Cash position<\/li>\n<li>Balance sheet<\/li>\n<\/ul>\n<p>By monitoring the performance of your business using these categories, you open the opportunity for analysis to identify areas for improvement when it comes to adapting your business plan.<\/p>\n<p>By collecting this information regularly, you can quickly flag and rectify any issues your business is experiencing before they become more damaging.<\/p>\n<p><strong>Spotting key trends<\/strong><\/p>\n<p>Short-term profit trends are more easily identified using management accounts, allowing you to increase profits by investing in the highlighted areas.<\/p>\n<p>As well as trends in profits, you can easily track your business spending. There may be areas where costs can be cut and changes to your business plan can be implemented.<\/p>\n<p><strong>Planning ahead<\/strong><\/p>\n<p>The best way to predict the future for your business is to look back at the trends of the past.<\/p>\n<p>You can compare several months\u2019 worth of data from your management accounts to track long-term trends.<\/p>\n<p>Having this data at your disposal allows you to find areas to adjust your business plan to ensure efficiency and long-term success.<\/p>\n<p>Alongside planning for trends, management accounts allow you to plan for taxation. They help to keep a more accurate account of your expenses, ensuring that you will be paying the correct amount of tax and can identify any tax reliefs you may be eligible for.<\/p>\n<p><strong>Creating management accounts<\/strong><\/p>\n<p>Management accounts can be done by business owners themselves, but it is recommended to consult an accountant to ensure you make the most of the data.<\/p>\n<p>With the guidance of an expert, you can focus on the most relevant data to your business and unlock valuable insight from the metrics.<\/p>\n<p>From this information, an accountant can help you identify causes for concern, as well as opportunities, and advise how to adapt your business plan accordingly.<\/p>\n<p><strong>Our team of accountants can help you get the right information from your management accounts. Get in touch to find out more.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Management accounts are vital in keeping on top of your business\u2019s performance. But what are they, and how do they work?<\/p>\n","protected":false},"author":2,"featured_media":5396,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,125,30,56,31,132,122,44,59,120,121,25,4,26,7],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5393"}],"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=5393"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5393\/revisions"}],"predecessor-version":[{"id":5394,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5393\/revisions\/5394"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/5396"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=5393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=5393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=5393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}