Management accounts Services
Going beyond the accounting basics
No one knows your business like you do, but it never hurts to increase your understanding. If you want to get ahead in business, you’ll need to go beyond the accountancy basics.
Our management accounts services can help you see the bigger financial picture. We’ll take what we learn from your accounts to draw up profit and loss reports, cashflow statements, balance sheets and more.
Focused on your business performance
Think of the service as a regular financial health check. Depending on what you’re after, we’ll produce monthly or quarterly management accounts to keep you up to speed with your business performance.
One key benefit of business management accounting is it allows us to anticipate obstacles or opportunities that may come your way. Knowing what you can expect in the near future can allow you to budget and plan ahead effectively.
Visualise your financial data
We want our clients to understand their business like the back of their hands, so our accounting reports get straight to the point. We’ll use graphs and charts to help you visualise your financial data, which can be particularly useful when relaying information to stakeholders or investors.
Tracking your data against key performance indicators (KPIs) can also give you the information you need to set your business up for success. The more informed you are about your business, the easier it will be to make sound financial decisions.
Interested in learning more? Find an accounting package that works for you.
What are you waiting for?
We’re so excited to work with you and your business – let’s talk whenever you’re ready.
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“They have helped me completely transform the way I run the finances”
“If you need accountancy services, look no further. I could not recommend Lumin any more highly. They have helped me completely transform the way I run the finances in my business and have helped me build my confidence in knowing the numbers.”
-Harri Halvon-Hardy
FAQs
What is the difference between management accounts and financial statements?
Management Accounts:
These are internal reports created regularly (e.g., monthly or quarterly) to help business owners and managers make informed decisions. They provide detailed insights into the business’s performance, including profitability, cash flow, and operational efficiency. Management accounts are tailored to the needs of the business and are not subject to external reporting requirements.
Financial Statements:
These are formal, year-end reports required by law for external stakeholders, such as HMRC, investors, and creditors.
Key financial statements include the balance sheet, profit and loss statement, and cash flow statement.
Financial statements provide a snapshot of the overall financial health of the business and are prepared according to accounting standards.
How does management accounting help in planning?
Management accounting plays a crucial role in business planning by providing valuable financial insights that guide decision-making.
Here’s how it helps:
- Budgeting: Management accounting helps create detailed budgets, forecasting future income, expenses, and cash flow, ensuring your business stays on track financially.
- Performance Analysis: By tracking actual performance against budgets, management accounting helps identify areas for improvement, allowing you to adjust strategies accordingly.
- Cost Control: It provides insights into where costs can be reduced or optimised, improving profitability.
- Cash Flow Management: Regular reports help businesses plan for future cash needs, ensuring sufficient liquidity for growth and operations.
- Strategic Decision-Making: Management accounting offers data-driven insights, supporting key decisions such as investments, pricing strategies, and expansion plans.
Why is management accounting important in decision-making process?
Management accounting is crucial in the decision-making process because it provides the financial insights needed to make informed, data-driven choices.
Here’s why it’s important:
- Real-Time Data: It offers up-to-date financial information, helping business owners respond quickly to changes and challenges.
- Cost Control: By analysing costs, management accounting helps identify areas to reduce expenses, improving profitability.
- Budgeting & Forecasting: It enables businesses to plan for the future, allocating resources effectively and avoiding financial shortfalls.
- Performance Monitoring: Regular performance reports allow businesses to measure progress against goals and adjust strategies as needed.
- Risk Management: It helps identify financial risks early, allowing for proactive steps to mitigate potential issues.
Does management accounting forecast future information?
Yes, management accounting plays a key role in forecasting fuuture financial performance. By analysing current and past financial data, management accountants provide valuable insights into future trends, helping businesses plan effectively.
This includes:
- Budgeting: Setting financial goals and predicting income, expenses, and cash flow for the upcoming period.
- Forecasting: Predicting future financial outcomes based on past performance, helping businesses anticipate needs and adjust strategies.
- Cash Flow Projections: Estimating future cash flow to ensure the business has enough liquidity for day-to-day operations and growth.
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