Most businesses whether big or small want to know their financial position on a monthly or quarterly basis. This can determine a tax forecast, a VAT forecast, or forecasts whether or not to invest in assets, labour, and other internal resources.
In management accounting, managers use the provisions of accounting information in order to better inform themselves before they decide matters within their organisations, which aids their management and performance of control functions. Management accounting is made possible from good bookkeeping strategies and in larger organisations information from other departments such as HR, Payroll, shop floor may be contributed and considered when making management decisions.
Why is Management Accounting important?
For most of our clients, we prepare the managements accounts following the preparation of bookkeeping on a monthly or quarterly basis. For our small sole traders and partnerships, this is a fundamental service as it helps us project any tax due and to look at tax saving benefits where possible well in advance. For our larger clients, it helps us determine not only the forecast tax implications but whether or not they should invest in new equipment and the advantages and disadvantages of any investment.
Do I need Management Accounts?
Not everyone will want or need or Management Accounts. However, by preparing your bookkeeping on a monthly or quarterly basis and thus producing a good set of Management Accounts, it will already start to discipline you ready for the new changes that HMRC will soon be imposing regarding making tax digital. It will also give you a better indication of the financial position of your business. As the saying goes, why shut the stable door once the horse has bolted?
At 1 For All Accounting, the Angels can help you:
We are not reactive accountants. We are proactive and strive to do the very best for you by putting you in the driving seat before events have taken place.
Don’t lose an opportunity or make a bad decision because your accounts were past and not present!