Don’t make business decisions in the dark – use management accounts!
Your books might be up to date, but unless you know what the figures mean it’s impossible to make strategic commercial decisions.
Worse still, if you don’t keep on top of your cashflow or expenditure or spot trends, you can easily damage or destroy your business.
Don’t risk it. Ask THP to prepare regular management accounts for you.
Our friendly, expert accountants can provide you with an up-to-date financial analysis of your business on a quarterly or monthly basis.
Better still, you can ask one of our accountants to act as your outsourced Financial Director. They’ll meet with your regularly and give you detailed insight into your management accounts, giving you the data you need to grow your business, increase your margins, get better deals from your suppliers and even detect fraud.
So don’t make business decisions in the dark. Let us help you interpret what your accounts really mean – for the current and future health of your business.
Why management accounts?
Good management accountants are like codebreakers. They take your business’s financial data and uncover business-critical information hidden among the figures.
They ask important questions on your behalf. Questions like:
- Which products’ profit margins are rising or falling?
- Which cost centres are performing the best – or the worst?
- Are budgets are being met or broken?
- Are new seasonal patterns emerging?
- Is there any evidence of fraudulent activity?
- How healthy is cashflow?
- Which suppliers are pushing up their costs?
- What are our current tax liabilities?
By asking questions like these, we unlock the data you need to make strategic decisions, measure performance, make your tax planning more effective and take control of your cashflow.
In short, our management accounts give you the information you need to run, improve and grow your business. Can you really do without them?
What will my management accounts look like?
Every business is different. Yours will have different needs, goals and priorities to any other.
That’s why we always shape our management accounts to your business. If there is specific information you need, we will always include it.
That said, at the core of every set of THP management accounts, you’ll find the following:
- An executive summary. This is where we give you an outline of your financial position, alert you to any problems that may be arising and make any recommendations we feel could help your business.
- A balance sheet. This gives you a snapshot of your business’s assets, liabilities and equity.
- KPIs. A detailed breakdown of figures that support your key performance indicators, from profit margins to sales increases.
- Cashflow. Your current and forecasted cashflow.
- Profit & Loss. Essential figures that enable to you measure your performance and progress against monthly or quarterly forecasts.
There’s another benefit to regular management accounts too: making up your statutory annual accounts takes less time, meaning they usually cost less to prepare!
Your outsourced FD
In addition to preparing your management accounts, why not use one of our experienced accountants as your outsourced Financial Director? They work with businesses like yours daily and bring a wealth of experience with them.
This service is ideal for business that are growing, but are not yet large enough to employ a full-time FD of their own. In addition to preparing monthly management accounts, our outsourced FD service gives you:
- Help identifying and measuring the right KPIs for your business
- Assistance with cashflow management and securing finance
- Impartial advice and a ‘critical friend’
- Help with key financial relationships, such as with banks
- Attendance at board meetings, as needed
To speak to one of our experience outsourced FDs, simply drop us a line or give us a call. After all, we could provide the ‘fresh pair of eyes’ your business needs to reach the next level.