An essential tool for assessing your financial situation and making steps towards business growth.
If you don't have any information, or the wrong kind of information, are you just gambling on the assumptions that your perceived knowledge is right? Finding yourself asking a lot of questions on how different aspects of your business are performing? How much did we make this month? Which product was the most profitable?
Management Information or Management Accounts is produced for internal use to aid in strategy planning, business decision, forecasting and analysis. It's an essential tool in assessing your financial situation and making steps towards business growth. Different from statutory accounts or financial accounting, management accounts are produced for managers inside the business to aid in decision making and enabling you to pursue your goals.
- Problems averted – Having monthly information can highlight potential problems before they arise and enables you to be pro-active is assessing issues.
- Decision making – Management Information is invaluable when it comes to making decisions on strategy, direction and development.
- Current Figures – You'll be making decisions on current figures, and your current situation, rather than what happened months ago
- Adaptable – There is no set format, so the accounts and KPI's can be generated to meet the requirements and information required. They're adaptable letting you adapt to changes in the business environment.
- Detail – As there's no set structure for management accounts they can be created to be as detailed as you need.
Having management information lets you make essential steps to adding value to your company and assists you in growing your business. Produced on a monthly or quarterly basis, management information reporting gives you a clear view of your financial position without waiting for your statutory accounts (which can be more than nine months out of date).