It is easy when running a business to have a mistaken idea of how the business is doing. Getting a big contract might make you think things are going well and you can go and buy a new car, or sending out a lot of invoices might make you think you can buy an expensive holiday.
But Management Accounts will show you the reality of how your business is doing. It covers forecasting, budgeting and managing your money.
Your management accountant can tell you how much you can expect to have by the end of the year if you keep to your current budget and are on track to meet your forecasts. They will give you the true picture of how your business is doing.
The management accountant can advise if you are spending too much or too little. They might suggest that the work being done by ten people could be handled by eight, and allow you to cut your overheads, and so increase your profits.
A management accountant might advise if you are spending too much – perhaps you need to cut down on expensive lunches.
The management accountant will help you keep to the right budget related to future invoices, so you don’t overspend.