Having good quality management accounts can be hugely beneficial to your business. They help you make the right decisions that make your company more efficient and potentially more profitable. In this blog we address a number of key questions concerning management accounts.
Management accounts are a set of summarised accounts data prepared for the company’s management. The goal of management accounts is to provide key financial information to management to allow them to make short term financial decisions, and plan for longer term decisions.
Management accounts are about being in control of your business and looking to the future. If you want to make projections for cash flow, predict your working capital requirements or check whether you’re likely to exceed an overdraft limit, management accounts are an essential starting point. If you’re a small one-person operation, they may not be necessary. But as any business grows, they become essential. So invest the time now and put control and reporting systems in place in your business.
We would always recommend quarterly reports at a minimum if you’re a trading business, but monthly management accounts are ideal.
There are very few excuses these days for not having management accounts, because there is so much technology out there to help. With cloud software, it’s an easier process than it’s ever been. Working collaboratively with your accountant you can benefit from their support and advice on a real time basis. As well as accounting software (such as QuickBooks or Xero), Apps are available that can help in many areas. There are Apps which enable direct feed of banking information from your bank into your accounting system. There are also Apps that scan and process invoices and expense claims and others that generate detailed reports you can easily tailor to highlight your Key Performance Indicators (KPIs).
There will be some set up costs, though you pay a small monthly cost for cloud based systems rather than a significant outlay for desktop software. You may be able to outsource more work to your accountant. And, of course, there may be significant gains in terms of visibility within your business. The benefits that having good management accounts can bring to your business will far outweigh any additional costs incurred.
Keep visiting our site as we will be publishing a series of blogs about the benefits of Cloud Accounting in the coming weeks.
"I have had nothing but a positive experience over the past 5 years from DNG. This tax year they have been particularly fantastic at saving me a considerable amount of money and advising on future payments. Their fees are probably the best money I spend every year. I’ve been asked for their details from 2 friends and family as a result. I would thoroughly recommend them as not only do they get good results, they are very easy to work with."
"We have been very impressed with the service we have received from DNG since outsourcing our payroll at the start of 2017. Our payroll/auto enrolment is not straightforward. Not only do DNG deal with the pension complications effectively and efficiently each month, they also identified errors we made in earlier years enabling us to recover nearly £4,000 of overpaid National Insurance contributions. We are pleased to recommend DNG, and their payroll team in particular, for their professional and diligent approach to providing their services to us."
"DNG provided us with invaluable advice and support as we negotiated our way through a recent MBO. They were super responsive and patient with our never ending questions and queries. I wouldn’t hesitate to recommend their services to other small businesses."
"Halcyon has been with DNG since 2000. In that time they have become an integral part of our business success. Not only do they provide the statutory auditing services but they have become our "Critical Friend" - offering advice and guidance at crucial stages of the Company's evolution and development. It's hard to imagine not having them there.
We are delighted with the quality of service they provide - always professional, always timely and always valued.”
"Jones Wholesale have been clients of DNG’s payroll facility for many years and would not think of changing to any other option. The consistency of service received is extremely reassuring and the staff I have experienced have always been efficient and a pleasure to deal with.
To know that calculations and reports will always be accurate and timely is of paramount importance to me and their knowledge and advice on personnel and tax/benefit matters has proved particularly valuable."
"The British Institute of Non-Destructive Testing (BINDT) has used DNG’s services for over 25 years. DNG are active participants in the day-to-day function of the Institute’s Finance and Accounts department.
BINDT is reassured in the knowledge that the staff at DNG are always on-hand with viable solutions and dependable advice for any financial query passed their way.
DNG provide outstanding payroll and budgeting support to BINDT and are consistent in preparing for and providing a thorough audit of the Institute accounts.
The support and services BINDT receives from DNG are second-to-none."
"iSAMS have been working with DNG since 2008 and they were not only chosen on the basis of their excellent reputation locally but also on their expertise in our particular area of activity.
DNG are our ideal partners and have helped us maximise on the exciting growth our business has seen during its infancy. We particularly value the on-site and personal service provided by the Management Accounting and Systems Support team.
We are more than delighted with the services that they provide and would strongly recommend DNG to any company or individuals seeking very professional and friendly advice."
"Barton Petroleum Ltd have been using DNG’s payroll services for many years now and value highly the confidential and personal service which they deliver. Their speedy and efficient resolution of complex queries is particularly appreciated.
DNG represent excellent value for money at a time when all forms of expenses are under the microscope and I would have no hesitation in recommending them as an outsourced bureau."
"DNG’s approach and conscientious attitude have been invaluable to my business and I could not have done without their expertise. Knowing the payroll for my employees, at the Tattoo Club is in safe hands has allowed me to concentrate on other issues within my business.
I pass on my sincere thanks to them and hope that we will continue our business association well into the future."