One of the East of England’s leading independent firms of accountants, Moore Thompson, is encouraging businesses to appreciate the benefits of regularly preparing management accounts.
The firm, which recently opened a new office in Peterborough alongside its existing offices in Market Deeping, Spalding and Wisbech, says that the use of monthly or quarterly management accounts could help businesses identify areas of strength, as well as weaknesses.
The firm’s Managing Partner, Mark Hildred said: “Conducted on a regular basis management accounts act like an MOT for a business, showing where profits are fluctuating, or for forecasting potential cashflow problems further down the line.
“Business managers often tell us that they aren’t sure whether they are necessary, but by having the data at the ready, companies can make the most of new opportunities as they arise.
“In addition, trends can also identify smaller issues, before they become major problems.”
Mark said that a good set of management accounts should include information such as profit and loss variances, balance sheets, sales reports, stock and inventory data, cash flow statements and defined key performance indicators.
“They say that knowledge is power. Management accounts, certainly give businesses the ability to plan ahead more effectively, and react quickly to problems,” added Mark.
Management accounts can be beneficial in a wide range of circumstances. These include where business owners are looking to sell, expand, or to acquire a new company.
“Management accounts can also be offered to finance providers when applying for business loans or other products, often increasing the chance of approval,” said Mark.
“With more uncertainty on the horizon for British businesses in light of Brexit, and other events, we can certainly see the benefits of having this level of business intelligence at the ready.”
“Being confident in your decision-making capability at all times is the key to running a successful, flexible business – which is why management accounts should never be overlooked.”
Mark believes that many businesses would benefit from their accounts information being held online in an up-to-date computerised format, such as Moore Thompson’s MT Cloud solution. This combines professional cloud accounting software options with the help and support of the firm’s team.
To find out more about how Moore Thompson can help you with management accounts and online accounting, please call 01775 711333 or visit www.moorethompson.co.uk/cloud/