Management information (MI), now more than ever, is crucial to build a thriving business, allowing you to seize opportunities and really begin to understand what is driving your businesses performance.
Management accounts are a key part of your businesses MI. With the ever growing improvements in cloud accounting, you’re able to get real-time financial information for effectively the first time ever. Really getting an understanding of your business financials is key to building a successful enterprise.
Management accounts give you the opportunity to really hone in on your recent performance.
You can get a great overview of what costs you’ve incurred and what revenue you’ve generated. But so much more than this, you can start to understand what’s actually driving those numbers. You can start to make changes to your business, and see almost immediately what affect those changes have had, what’s working, what’s not working. And because of this, you’re business becomes more adaptable to change, more competitive and ultimately more successful.
It’s also no longer a case of just being handed a spreadsheet full of numbers, and being asked to analyse them, all while trying to run your business and do a thousand other things. Data analytics allows us to produce dashboards and infographics which summarise all of the complex data and present it in an incredibly useful but digestible format.
With an efficient management accounts process in place, you’re no longer just analysing past results, potentially months out of date. Instead, you’re able to start making relevant and accurate predictions for what your business is going to look like in the months ahead. Combine this with cashflow forecasting, and suddenly there are no more financial surprises. You can predict any gaps in funding that you may have, identify times when you may have surplus cash, and how you can invest that further into the business to increase future performance.
If you’re interested in a consultation on how we can help set up a management accounts reporting process, get in touch with a member of our team today. And if you’re still not sure, ask yourself this question: “are you happy with your competitors gaining an advantage on your business?”. Because it’s safe to say, the competition you need to worry about are the one’s doing this already.
If this sounds of interest, why not get an instant quote?