The production of a set of management accounts can help give you a current and up‑to‑date overview of the profitability of your business, identify areas for growth and improvement, enable you to better manage your resources, evaluate the effect of implemented strategies/plans and assist with budgeting comparisons. This can be especially helpful to a new business at the start up stage.
There is no legal requirement to prepare management accounts, but it is hard to run a business effectively without them. However, the Revenue has initiated a scheme where by the year 2020, they are bringing in a requirement for all companies Corporation tax and individuals registered under self-assessment to produce and file quarterly accounts (due to Covid-19 this may be delayed). Please see report above. This is being brought in in stages, the first of which is for individuals running businesses, starting in July to December 2018, which includes income from Land and Property (Landlords). The only exemption will be for those businesses with profits less than £10,000.
For those businesses who are required to file quarterly VAT returns and who are already using a computerised accounting software, the only real difference will be the inclusion of some accounting adjustments and then digitally filing online a quarterly update direct to the Revenue.
Regular – ideally monthly – management accounts are the barometer against which important strategic business decisions are made.
Often companies do not have access to good management accounts, because they are time-consuming to compile, your team’s skills are needed elsewhere if your business is to flourish, or they believe that they are just for when a business is in financial trouble.
If you already have management accounts how confident are you that they supply the information you need to make business-critical decisions? Is the person who prepares them reliable and knowledgeable? Do they give you accurate budgeting and cashflow information?
HM Revenue & Customs
The layout of your management accounts will be tailored to your own company’s needs to meet internal and/or external requirements.
What We Do
By outsourcing your management accounts to us, you can be assured that they are tailored to the needs of your business. We provide the information that your management team needs to measure performance against your business plans, aims and objectives and make effective decisions thereon.
A typical set of management accounts from GCAMS will provide you with an easy to understand format for detailed or at-a-glance results.
The layout of your management accounts will be tailored to your own company’s needs to meet internal and/or external requirements, but could include:
- Profit & loss account
- Balance sheet
- Departmental profit and loss accounts (broken down by product, region or strategic business unit)
- Month‑on‑month comparisons, including comparisons with budgets and previous years
- Outstanding balance on your personal ledgers (Debtors and Creditors)