Management Accounts

Hi everybody,

If I am asked to prepare a monthly or quarterly management accounts for a company, what do I need and how should I go about it. How should the result look like?

Thanks in advance.

Comments

  • columbiacolumbia Experienced Mentor Posts: 580Registered
    Hi

    The management accounts will consist of items such as the Profit and Loss, Balance Sheet, Cash Flow and budget reports.

    There may be other items specific to the individual company, so may be an idea to ask what has previously been produced.

    I normally just produce the items listed above and our external accountants go through these items with me and produce a booklet containing the information, we also include items such as Gross Profit % to show how we are performing, you may find that your company wants other ratios, such as debtor and creditor days for example, there are a lot of performance ratios that you can work out from producing the reports, so best to ask how in-depth they want you to go.

    Hope this is of some help.

    Kind regards

    Tracy
  • timhamertimhamer New Member Posts: 7Registered
    Tracey has given you a good answer.

    Bear in mind that the purpose of the management accounts are to help the directors run their business - most businesses produce a management information pack where you can include business performance and budget information.

    You may find it helpful to present information graphically, and use more comparative information such as actual/budgeted/previous year.

    Also if you company has a new project or investment you might want to include detailed information about the performance of that.

    You should work out prepayments and accruals, adjust for stock, and you may well be asked estimate the tax charge.
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