Giving you the information to make critical business decisions
What is management reporting?
They are the monthly reports of business activity, translated into the salient information you need to make sense of your business.
The reports will break down your monthly business transactions, culminating in a tailored profit-and-loss account, balance sheet, cash summary and a schedule of what’s owed and what you owe. This will give you a clear indicator of the business’s performance and position at any given time, allowing you to make the right decisions about the future of your business.
When should you start them?
As soon as you are operating as a business! When you start to make meaningful transactions on a day-to-day basis, you need to ensure you have a robust management accounting process in place. You need to know how you are performing, where you are spending money and the potential that exists within your business. When you are fundraising you will be reporting these management accounts along with other key metrics to your investors and stakeholders on a monthly basis.
What are the common pitfalls?
Not structuring the profit-and-loss and balance sheet in line with your forecast business model/budget.
Not acting proactively when issues are raised about the transactions and balances.
Not understanding the accounts in full to allow you to communicate to your team, investors and other stakeholders.
How we can help.
We can prepare your management accounts on a monthly basis. With knowledge of your business model, we will take all of your transactions into account – sales, cost of sales, supplier costs, staff expenses, capital costs, loans and investments – in order to produce a monthly report.