Management reports can help your business succeed.

Many business owners are unaware of how much insight they miss out on by not using management accounts.

In this article, I’ll discuss management reports and how we’ve helped our clients with this important service.

 

What sort of business are you?

Management reports aren’t for everyone: but they are for those who want to make informed decisions on up-to-date information, measure their performance on the fly, and gain better control over their cashflow.

Let’s have a look at some common business scenarios and how management reporting can help.

 

As a startup or new small business

Most small business startups grow to a point where it’s no longer possible for them to control the business’s finances as they did when they first started up.  

When a business starts out, some owners find it interesting — dare I say, ‘fun’ — recording their income and expenses and documenting the development of the business. It’s a new process, and it’s all part of the adventure of setting up your own company.

Gradually, as time passes, many business owners find the element of fun waning as new requirements pull on their time, and bookkeeping ends up getting in the way of operations and developing the business.

In this situation, the owners are often still on a tight budget. Spending valuable cash resources on bookkeeping and accountants’ fees at this point can be a difficult decision.

Despite the constant strain on resources, it’s essential that the accounting, books and records are kept under control. Otherwise, in the long run, the business can lose control of cashflow itself and find it harder to make important decisions on where to spend cash resources.

Successful smaller clients realise that outsourcing bookkeeping and making the most of management reports allows them to concentrate on their own skills and run the business effectively.

 

As an established small business

Have you been in a steady business for a number of years, consistently turning over sales but struggling to get your head out of day-to-day operations? Need to have clarity on how the business is performing?

I’ve found that the clients who spend an hour a month going through the company figures and feeding that back always find it worthwhile. 

Typically, this process works as follows: a bookkeeper prepares your business’s books, gathering and organising your financial information. As accountants, wecome in once a month to check the bookkeeping, carry out VAT checks and other compliance work, and then produce bespoke management reports about the business, ready for review by the directors.

 

Successful business

Do you run a successful small business but want to push the boundaries and grow? 

These companies are always looking for an edge, and they know it’s essential to know their figures inside out. They seek out accountants, test and feedback systems, and always look to improve. For them, management reports aren’t a hard sell; they’re already thinking about the future.

 

Speak to us about management reports

If we could impress one action on any of our clients, it’s to think like a successful business owner. That means having growth and improvement at the forefront of everything you do. 

Take risks, and back them up with reporting to test them out. Never sell yourself short, but don’t rest on your laurels, either.

A great start is a set of management reports based on your latest set of books. That’s something we can help with.

Get in touch to discuss how management reports can change your business.

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No matter what you need help with – whether it’s a troublesome set of accounts or a forecasting strategy – our accountancy practice is here to bring you a tailor-made solution.