Management Accounts and how to grow your business
What are Management Accounts?
Put simply, management accounting information is the stuff you use to help you make decisions and to plan, going forward. It’s the intelligent analysis that will allow you to understand what’s going on, to make changes needed and achieve the business growth of your dreams.
Financial accounting tends to include, the compliance work you have to do, like annual accounts, a corporation tax return, payroll and VAT work. All essential, all filed with HMRC or Companies House and all looking back on the year just gone.
Management Accounting data is generated using business intelligence tools.
Designed to provide accountants and business owners with a range of reporting options that save time and effort – while delivering clarity for better decision-making.
Nowadays, this useful, often business changing insight, comes from the data held in your accounting system. It’s no surprise to you that, as Xero Accountants, we recommend a Xero Add-on to get this analysis for you. Your financial data is exported, seamlessly from Xero, into the reporting formats best suited to your needs.
Using a reporting and analysis tool like Spotlight Reporting means you get visibility and reporting options that can help you understand what is going on in your business, and that is what helps you make decisions.
Management information is not only for big corporations.
If anyone tells you your business is too small to need management accounting info – dare to think differently. If you want your business to grow you need this. Once you have it, you have the power and competitive advantage that the nay sayers do not.
There are affordable reporting options available for one man bands right up to big business. Fully customisable dashboards can mean you know your cash flows on a day by day basis, key KPIs, revenue and turnover %, outstanding sales invoices and key ratios for your business.
Basic, useful and better than no management accounting info is now available in Xero. Your Accountant can customise a report and use the Performance Dashboard to highlight areas you may want to understand better.
This means that if you’re with us you’re on Xero. If you’re on Xero you have a smart, affordable and scalable business system at your fingertips.
Todays’ small businesses also have access to 3 way forecasting – that means cash flow forecasting, profit forecasting and a balance sheet forecast. You may think this is no interest to you because you’re too small. We say, todays’ business world is about levelling the playing field for the small business and business app tools are there for everyone – even when you’re on a tight budget. If you pay dividends from your business, you will find a profit forecast helpful, and reassuring. The latest King of the Jungle here is CrunchBoards – it costs you more for us to deliver but it’s a mighty powertool taking the small business world to another level – it starts where Xero stops – Ask us if you want to know more.
There are many management reporting tools available now, and many add on to your cloud accounting system as well, making your business life much simpler and making management accounting accessible.
For simpler, easy to use cash flow forecasting and budgeting Float still delivers excellent service, for small businesses on Xero. Float syncs with Xero so your forecast is always up to date, you can see an accurate projection of your daily bank balances at the touch of a button.
So if you want advice on how you can get even more useful data out of your accounts then get in touch with us – free trials available, along with feedback from clients already seeing the benefits of managemnt accounts.
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