Our management accounting strategy
We will regularly provide you with an accurate, detailed and tailored report that helps you make key decisions about your business. If you need some statistical analysis or a smart dashboard, we can help.
Our management accounts service has two main levels to it - both of which are extremely important to help you run your business. Essentially it’s a report on the financial statistics of your business - a Profit and Loss, a Balance Sheet and a Cashflow statement. But it’s a lot more involved than simply pressing a report button in your software.
Firstly there’s the management accounting itself. This is like Bookkeeping but with sprinkles on top. Let’s say you get an annual renewal bill for your insurance - you don’t want that to hit your profit and loss account all on the date shown on the bill. Instead the cost impact of this bill should be spread over the period the insurance relates to - even if you pay it off all in one go. This way, when you monitor your monthly spend, you have something more consistent to compare to each month.
We smooth out the peaks and troughs in cost lines so that you have more certainty of what your business actually costs to run. We call these ‘Accruals’ and ‘Prepayments'.
In addition, we also look into the capitalisation of assets - ie, did you buy a new computer that you might use over the next 3 years. We query your income to see if anything is invoiced in advanced that we could set aside for the future - or if anything is being billed late that you’d like to see the benefit of now. We also look into tax estimates so as to manage expectations in-year rather than after it’s too late.
Secondly there’s the actual reporting itself. If we were to press a button in the software, we’d get a detailed report that are simply numbers on a page. Believe it or not - that’s not the most useful of reports. Instead of that, we take the same data and present it in a way that makes sense for the target audience - whether that’s you, or perhaps your wider team. We use graphical representations, we analyse KPIs (Key Performance Indicators) and we present the data in a much more bespoke way so that you can not just read the results, but do something with them. We also extend the packs to include more than just financial numbers. Are you interested in social media statistics, personnel figures, numbers of transactions - we can accommodate it all.
Finally there’s a dashboarding element to our work that we also offer. Are you looking to display live updates to your statistics on an on-screen display for all stakeholders to see - we can help develop those too.