Can having a more detailed understanding of your finances make your business more profitable?
At Pound Lane we specialise in management accounts; providing up to date, reliable information to guide business decisions.
Every business has an external accountant who produces the accounts at the end of the year. They draw up the long, and pretty complex year end accounts, work out the tax bill and file everything with the appropriate authority.
But this is looking back at what’s already happened; what about the future? If I want to invest in a new production line, I want to know that it will generate enough savings/ extra profit to pay for itself. If we take on a new project what will be the impcat on our bank balance?
That’s where a management accountant comes in – forecasting the finances (and that really means the bank balance) are impacted by changes in the business.
Reports are produced more regularly (monthly or at least quarterly) so that any forward projection starts with the most accurate information and to keep track of the actual performance versus the original expectation while there is time to change plans and keep on course.
Trading in 2020 is a perfect example: in most cases 2019’s profits look like they belong to another galaxy. Every other day the outlook has changed, with new government support or new restrictions on life.
Change has become an everyday occurrence and that’s when you need good information to make sure you make the right decisions.
You can read more about what to expect in management accounts here. They should give you the information you need to identify the actions to steer the business towards the objectives that you want and track the results of those strategies as well as the unintended consequences.
This is not about having reams of paper, you need a dashboard that shows clear and unequivocal information, neatly summarized so that it doesn’t need an expert to interpret it. Information ready for making decisions.
How can a management accountant help my business?
There’s no “one size fits all” solution: working with us always starts with a business review to clearly assess the starting point for the business strategy. (The business review is available without leading to any future commitment, if you’d like to know more then contact us here)
Services we offer include:
– Trouble shooting; highlighting weaknesses in your systems or financial performance
– Understanding the implications of business growth and helping you to get the appropriate funding
– Investigating and planning investment in the business; marketing, machinery or new staff recruitment, etc
– Updating or developing spreadsheets to improve record keeping and business processes
– Setting up and managing accounting software to give the information you need
– Interim cover for your team in between recruitment or maternity leave
Having a management accountant on board with your business will help you make more profit, have more cash in the bank and feel more confident about your business decisions.
If you would like to find out more, or you have a specific issue that you need help with then contact Susie either via the website here or direct on 07801 199671 or firstname.lastname@example.org