We are now approaching the middle of February and time already seems to be picking up pace. Most successful business owners will start any year with enthusiasm for increasing sales and improving the quality of customer delivery .
Yet with all the activity and gusto one thing remains a consistent question from business owners; how do you make sure you keep to plan? Good financial reporting is something that links successful businesses. In fact some would go so far as to say that financial measurement and reporting is essential if you are to maximise the profit potential and sustainability of your business.
However, simply having the financial report is of no value unless you regularly use the information to track and measure and indeed understand the performance of your business.
Whether you are starting a new company or looking to develop an existing one, it is vital to build continually on the strengths of your business whilst minimising the risks of its weaknesses. Visibility of your finances through regular management accounts is extremely effective in achieving this. To be valuable, management accounts should be produced monthly, quarterly or half yearly and available as soon after the period end as is feasibly possible.
General benefits of management accounting include:
– Reduce your expenses: the information that becomes visible enables business owners to review the cost of their economic resources and business operations. This in turn supports better understanding of how much money it costs to run the business.
– Make better business decisions : business owners can use the information from their management accounts to measure the impact of historical business and financial decisions.
– Increase your profitability : having accurate current management accounting information allows business owners to produce forecasts and budgets based on up to date data and the reality of current performance.
There is a perception that in order to have quality management accounts produced, business owners have to employ expensive financial consultants. This puts most small businesses off the exercise.. Yet good accountants who go the extra mile also offer business owners the benefit of producing management accounts without the headache of the traditional consultancy expense and this also saves time that would be spent explaining the business to another person.
Here at Keen Dicey Grover we feel that producing and maintaining your management accounts along with offering strategic advice is an important service to ensure you feel safe, supported and confident in running and growing your business.
By spending time with business owners, and understanding their businesses from the very beginning, we make it our business to provide the visibility of their business’ financial performance that they need, therefore giving them comfort and control.
Keen Dicey Grover
We care…………….we really care