 at Roberts Nathan, we believe this type of activity should be done on a monthly basis as it is fundamental for any business owner to keep up with their growth. Monthly management of accounts and a walk through of your businesses finances are extremely important to catch trends and mistakes before they cause any potential damage to you and your business. Running a successful business is impossible if you don’t have accurate information about your business’s finances. Managing your business’s accounts is not a bi-yearly checklist item; instead, we believe that it should be done monthly. This allows you to make timely decisions with expert knowledge about your business’s current financial position. Monthly management accounts can simplify this for you. These are a set of financial reports that are produced monthly for any business. These reports help you get accurate numbers for all your business operations. These can be used by any member of the management, from CEOs to managers, to get in-depth information.
Why do you need monthly management accounts?
A monthly management account is key to running a well-developed business. There is a lot to be gained from regular sit downs with your accountant to get a pulse on the finances of the business:
- Assess expenses
Monthly managing of financial accounts ensures you can track your business’s monthly expenditure more accurately. You can easily assess which business operation is using above-average money and devise a strategy to reduce the expenses.Â
- Developing forecasts
An important part of running a business is deciding business goals and budgets. With monthly management account reports, you are up-to-date with the current financial position of your business. This will allow you to develop accurate forecasts and budgets for the upcoming quarter.
- Track growth
Monthly profit is the simplest method of tracking your business’s growth rate. By managing your financial accounts monthly, you can accurately track the growth of your business over any period. This will also help you determine when sales are low. This information can then be used to change your digital marketing strategy.
- Reduce audit costs
Hiring a firm to do a detailed audit of your business at the end of the year is expensive. They often charge you extra for the last-minute work and to solve any queries you have. However, with monthly management account reports, you can reduce this cost. Any query you have can be solved beforehand, and you can ensure the same mistake isn’t repeated.
- For creditors and debtors
Whether you have a business loan or plan to take one in the future, a monthly management account can help you secure the loan. Financial institutes rely heavily on the business plan and monthly account statement of a business to determine its potential. With a detailed report, you can easily assess your eligibility for the business loan.
What does a monthly management account report include?
The elements of these reports may vary from business to business. In general, these reports include balance sheets, profit and loss account statements and customised reporting. You can also customise these reports to include a feedback report and a KPI report from your accountant. The feedback report from the accountant can help you determine which accounting errors you can avoid. On the other hand, Key Performance Indicator (KPI) reports detail the performance of your business based on specific criteria and metrics (ex: burn rate). Consistent, systematic and regularly maintained information is the key to running a successful business. With our monthly management account service, you can unlock your business’s full potential and ensure your business is heading in the direction you want. If you have a business and are interested in exploring any of the above in more detail and learning the impact of how monthly managed accounts can impact your business, please reach out to me on shane.meade@robertsnathan.com or feel free to give me a call on +353 (021) 494 3977.
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