Management accounts are the most misunderstood of all accountancy services and can be a hugely useful tool.
As discussed in our accounts section, having annual accounts completed in a timely manner (as soon as possible after your year end, not at the last minute) can have a huge impact on your business’ performance. The limitation with relying solely on an annual accounting service however is that an issue that occurs in say the first three months of the year wouldn’t become apparent until the end of year accounts are produced. For example, if a business’ electricity costs increased in month two, but this wasn’t picked up on until after month twelve, there have been an additional ten months of over spend. If this business was producing regular management accounts (monthly or quarterly), the business could have picked up on the over spend straight away and switched supplier. This would result in a higher profit for the remaining ten months of the year.
Management accounts can also be used to monitor and manage receivables (customers who have yet to pay you) – this is something that can have a huge negative effect on business cashflow. Putting in place a system to manage your customers and their invoices is vital and needn’t be complex or time consuming. Many of our clients manage their customers’ accounts with software, which makes the whole process quick, reliable and effective – clients save time and money.
There is a wealth of benefits to be achieved through management accounting, no matter what the size of business. At Caroline Hinde Accountancy, we provide training for clients who want to complete their own record keeping and produce their own reports. We can also take it all away and do it for you, if you prefer! If you’d like to discuss what type of reporting would work for you and your business, get in touch to arrange a free consultation.
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We chose to work with Caroline Hinde Accountancy because we wanted to have a real-time view of our business performance, rather than months after the year had ended. Having this information has enabled us to take informed decisions which has enabled a period of growth for us.
Knowing that everything is taken care of on a monthly basis gives us huge peace of mind and we always know well in advance of our tax liabilities so we are always in control of our cashflow. We now use the software recommended to us to send our customers invoices which look professional and make it easy for us to monitor any outstanding invoices.
The service we receive from Caroline Hinde Accountancy is invaluable - they're approachable, friendly and professional.
Caroline has recently finished my accounts for me. She has done an excellent job of pulling everything together and I felt both relieved and confident, that they were submitted correctly.
I am so pleased that I asked for Caroline's assistance in helping me with my accounts. Even though I'm just a small business, it was nice to have that reassurance, that everything has been done correctly. It was money well spent!
I found Caroline to be very approachable and helpful in her advice. A lovely person to work with - thank you!
A fabulous accountant with a personality and a sense of humour? An oxymoron I hear you cry! But not at all. Caroline Hinde is all of that!
For a small business owner like me who knows next to nothing about self assessment and has no inclination to further their knowledge, what I need is someone who simply takes care of it all. That’s exactly what I got from Caroline; she is efficient and friendly and is incredibly knowledgeable. Nothing is too much trouble and she has taken all the stress out of the whole process for me.
I can’t praise Caroline highly enough and would recommend her to anyone I know and indeed have done so whenever I can. Look no further than Caroline, and you will not be disappointed.
I have found Caroline to be highly professional, efficient, knowledgeable, friendly, and helpful in my dealings with her, and have no hesitation making a recommendation.