What are Management Accounts?
Documenting your income and expenditure and reconciling this information to check it is all correct and up to date is known as Management Accounts. This can be done every week, every month, or every three months, but to keep on top of the workload and to keep your records up to date we would advise monthly management accounts.
How will this help my business?
Staying on top of your management accounts will benefit your business in so many ways. Not only will it keep you up to date with the general state of your business finances, but you will also be able to monitor any company growth. Keeping a close eye on your finances means that you are better equipped to make any decisions to do with your profit. And you are more likely to notice potential issues which will allow you to act quickly to keep things running smoothly.
Tracking your income and expenditure will also help you to see how, when and where your money is being spent.
New Business & Startup Finances
Starting a new business is one of the most exciting and stressful things you can do. It can be daunting but putting the right systems in place from the start will allow you to keep your cash-flow running smoothly.
End of Year Accounts Planning
At the end of the financial year, if you are a limited company you will need to submit your accounts to Companies House. Keeping on top of your monthly records will make the process so much easier and quicker and your accounts will already be in order.
The monthly records should give you an indication of how much you need to save towards your corporation tax bill so you can have the majority of this money saved before you get the tax bill.
If you are based in Rye and you would like to speak to a member of our team about Management Accounts then please get in touch on 01797 223127. Our experienced team can advise you on the best course of action for your business.