THE use of monthly or quarterly management accounts can help businesses identify areas of strength, as well as spot the early signs of changes in the business performance, or cash flow, which require investigation or urgent action.

These changes can be quite small in percentage terms, and are easily overlooked.  They may be almost imperceptible to the business owner, but result in quite large financial impacts.

Lamont Pridmore can help you to regularly prepare accurate and timely management information, and then work with you to understand what these numbers mean.  The final step, and the one that will have the most impact on your business and personal wealth, is to support you to take the necessary actions to improve performance and profitability.

Conducted on a regular basis, management accounts act like a health-check for a business, showing where profits are fluctuating, or forecasting potential cashflow problems further down the line.

To make the best business decisions, business managers need the most accurate, up-to-date financial information. Having the data at the ready ensures that businesses can make the most of new opportunities as they arise, and identify smaller rectifiable issues, before they become major problems.

A good set of management accounts should include information such as profit and loss variances, departmental or product profitability, balance sheet, sales reports, stock and inventory data, cash flow statements, and important key performance indicators.

Management accounts, and the information they provide, give businesses the ability to plan more effectively and react quickly to problems and opportunities.  They also enable you to understand your up-to-date tax position during the year, and take action to reduce your tax liability within your financial year.

Management accounts can be beneficial in a wide range of circumstances, including where business owners are looking to increase profitability, improve cash flow, expand, acquire a new business, or restructure the business for sale.

They can also be provided to finance providers when applying for business loans or other financial products, and, during any business sale, to support any valuations that need to be undertaken.

Being confident in your decision-making capability at all times is the key to running a successful, agile and flexible business – which is why the importance of up to date accurate management information should never be overlooked.

Lamont Pridmore’s Finance Director and Management Information Service will keep you on track to help you meet your business and personal goals.  

More information is available on the website: www.lamontpridmore.co.uk, or get in touch today to find out how our specialist advisers can help, by calling 0800 234 6978 or email info@lamontpridmore.co.uk.