Our new company is required to submit 'management accounts' to the Dfes.Is there some formal definition of these or do they just want a simple profit and loss sheet? Cheers for any info.
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What are 'management accounts'?
I am not an accounatnt etc, but these are accounts prepared for the use of management, as opposed to the ones used to calculate tax etc. They typically include budgets and so on.
A quick Google brought me this link, which looks a decent description to me, and it occurs to me that in your current business venture this sort of thing could be of some practical use for you, as opposed to being just another bit of red tape.
www.kffaccountants.co.uk/...gement.cfm
Management Accounts
Well organised, accurate and up-to-date
management accounts is the window into your
business, an essential aid giving you the
information you need to make the right business
decisions at the right time.
At Kenneth F Forsyth we can design and set up a
reporting system that responds to your specific
business needs, such as:
o - cash flow forecasts
o - order book details
o - comparing budgets against forecasts
o - showing the average time you take to collect
payments from customers
o - the average time taken to pay suppliers
o - highlighting unusual patterns of income and
expenditure
More than setting up the system, though, we will also help you interpret the figures and offer advice on how you could save money, any possible tax benefits, the right time to expand or make investments.
PS - I'm not connected in any way with these people, I just found 'em on Google. -
Management Accounts
Sys....interesting link...Ken F lives just down the road from me in West Yorkshire.
Management accounts tend to be prepared on a periodical basis for use by management. They aren't a requirement under the Companies Act and as such can be in whatever format the management require.
They usually consist of a P&L, balance sheet together with some variance analysis...we prepare some for clients that include things like graphs & pie charts!Comment
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Management Accounts
"interesting link...Ken F lives just down the road from me in West Yorkshire."
Goes back and looks ... Sowerby Bridge! LOL, I used to know it well.Comment
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Re: Management Accounts
Cheers chaps. If no fixed formats then they will get a profit and loss and balance sheet. As for all this forecasting and pie charts and variance and cash flow malarky, complete drivel. We will sell what we will sell.Comment
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Re: Management Accounts
In the case of quoted companies, Management accounts show the true financial position of a business, before they are transformed by management into garbage published accounts to increase the share price.
A cynical accountant.Comment
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Re: Management Accounts
Management accounts are approximately right.
Financial accounts are exactly wrong.
(unless you are preparing management accounts for large companies where items are moved around the P&L and accruals made and released to minimise embarassing variances and stitch up those b*sta*ds in marketing)Comment
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