Management Accounts Service

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Management Accounts

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Our expert accountants can prepare your companies management accounts.

Highlighting areas where expenditure has risen or where a return is not being made on investment, allowing you to make the decisions to get your company to grow.

What is a management account?


Management accounts are usually reports produced for directors and any other personnel it is deemed necessary for them to have access to it. These allow directors and operational managers to make decisions by looking at the finances of the company.

These can show trends in sales, so for example if something is not selling well it may be cut from what is offered. They may also show expenditure rises, so as a manager you can look at ways to reduce these costs.

Management reports can be used to help retain a strong financial control over the business. Often these are not shared externally, for example with shareholders. However if the business is in financial crisis, or certain aspects are not performing well, they may be shared externally or with shareholders. A lot of companies will produce management accounts on a regular basis, weekly, monthly or quarterly as a way to assess and improve the business' financial standing.

What are the Key Features of Management Accounts?


  • Management accounts can include whatever information is decided or requested. Unlike Statutory Accounts there is no set way to do this and no set information that must be included.
  • It is up to the business to decide when the management accounts must be completed. Whether these are to be done quarterly, monthly, or weekly.
  • As it is not a legal requirement your business produces one, depending on the size of your business it may be that your company does not produce one at all.
  • when strategising and choosing the direction of your company, management accounts are key. They offer insight into where he business is at financially, what areas are doing well and which areas not so well, so you can adapt and evolve your business model to adapt to the market and boost your business' profitability.

Are there any differences between a statutory account and a management account?


There are differences between these types of accounts, and knowing these can help a business owner utilise these tools effectively to ensure their business' financial success by enabling you to manage your business' finances effectively.

  • Management accounts, are essentially the same as company accounts, and can be in any format you choose. Statutory accounts must however, follow the layout prescribed by HMRC.
  • Management accounts are incredibly useful tools, and we would recommend that your business uses them so that you can adapt to market changes and have an insight into your business financial stability. However, there is no law stating that you must produce these, it is entirely up to you whether you do or not. Statutory accounts must be produced and shared with shareholders, Companies House and HMRC.
  • Statutory Accounts do not have to go into all the details of expenditure and revenue, merely stating how much profit and loss there was, and was expenditure and revenue there was. Management accounts go into much greater detail, providing insight into all the expenditure and revenues attained by your business. Statutory accounts allow you to see the overview of what your business has achieved each year. Management Accounts allow insight so you can focus your scrutiny of your business and improve your business model.
  • Both of these kinds of accounts can help you to keep an eye on the financial standing of your company. However, management accounts allow you to adapt to the market, make financial forecasts and make suitable changes to your business so that you can improve profitability.
  • Management accounts provide the raw data of the business, showing you a real picture of where your company is financially. It is not made to look good for HMRC. Statutory accounts are not allowed to mislead HMRC or investors, but they do not provide an in depth look into expenditure and revenue.

If you feel you would like help or advice on any of these please contact us here.

Frequently Asked Questions About Management Accounts


What is a set of management accounts?

Management accounts are a set of statistical and financial data which are prepared for use by management and business owners to make decisions to increase the profitability of their business.

What are monthly management accounts?

In many organisations, the senior management or board will ask for the chief accountant or management accountant to create a monthly report on profit and loss, also known as an income statement.

It will also include many other useful financial reports as well as the income statement so that the management can make financial decisions.

What is the difference between management accounts and financial statements?

Management accounts are concerned more operational reporting, and are distributed just within the company, normally to the board of directors or business owner.

Financial accounting has to be compliant with certain accounting standards, however management accounting does not have to be compliant with any standards as it will only be distributed internally.

What are management accounting reports?

Management accounting produces period reports for distribution within the company, usually to the CEO and department managers or board of directors.

Management accounting (also known as cost or managerial accounting) is different from financial accounting as it does not have to comply with certain standards of reporting as it will only be viewed internally.

What are management reports?

Management reports are a collation of data, displaying income and expenditure, that allow the managers, CEO or board of directors to make informed real time decisions based on the data in front of them to improve profitiability.

These can be incredibly useful tools,yet are only as good as the effort that has gone into the preparation of them.

Why are management accounting reports prepared?

Managerial accounts are prepared for use within an organisation or company, usually for the CEO, board of directors or managers that enable them to make decisions based on the financial and statistical data that is displayed.

What are management figures?

Management figures will be displayed in the regular quarterly, monthly or weekly management accounts and will be able to display KPI's (Key Performance Indicators).

The management figures displayed will enable change or stop activities that are not cost effective or are draining the finances of the company.

What do management accountants do?

Management accountants are vital figures in determining the success and status of your company.

Some decide to be a CMA (Certified Management Accountant), with a focus on financial planning, management issues and cost accounting.

What is the difference between cost accounting and management accounting?

Both of these systems of accounting will be used by the management of an organisation to help them to make decisions based on statistical data.

Management accounting relies on both qualitative and quantitative data, whereas cost accounting relies mainly on quantitative data.

What are management accounting systems?

Management accounting will rely on the internal systems of an organisation to collect data and then will collate this data for the management of the organization.

What is the scope of management accounting?

The scope of management accounting will encompass the entirety of the business, to identify areas for growth or areas where profit is being lost.

It uses financial data to help management shape their decisions on where the company should invest, or stop investing money.

What are management accounting tools?

A management accounting tool is a model, a framework, process or technique that allows management accountants to: facilitate decision making, improve performance, support strategic objectives or goals and generally add value to an organisation.