Proper Prepared Management Accounts will show business owners the following:
- How the current state of a business compares to the budget and forecast
- Sales, expenses, debtors and creditors trends
- Cash flow situation for the following 2 months
- Capital expenditure the business is likely to incur in following months
- What expenditures can be financed
The lack of the information mentioned above can lead to inadequate financial planning that may, in turn, lead to the business’s self-destruction.
One can say that Management Accounts are the interpretation of everyday business information to see the bigger business picture.
Not all accounting clerks are capable of performing these tasks, and not all accountants offer this to their clients. We at Dynamitech offer Management Accounts to all our business customers.