What are management accounts? And how can management accounts transform your business? Below we show you how to make great management accounts using our management accounts template.
Management accounts are an absolute necessity in making business decisions based on recent performance. As a business owner, once you start using management accounts, you’ll wonder how you ever made business decisions without them!
Reporting on management accounts regularly means you and your team can see the effect of business decisions soon after making them.
Why Aren’t Business Owners Using Management Accounts?
There are plenty of reasons why this is the case. The most common are they:
- Aren’t interested in finding out more about them
- Think they’re too small a business
- Never found the time to implement them
- Don’t use a standard system for accounting
- Assumed that it will be too difficult and time-consuming
- Don’t see the point
- Assume it’s expensive.
Of course, some of that reasoning might be somewhat accurate. Not every business needs management accounts. Some will be too small or too basic to get any significant benefits from implementing weekly or monthly management accounts.
However, even the smallest and most basic of businesses will gain high-value insights from management accounts at least once a quarter that breaks down the data according to previous quarters. So even if your business generates less than £100kpa, those detailed insights could be more valuable than you think.
