Generally small and medium sized businesses tend to steer away from management accounts, mainly as they are not obligated to prepare such information.
They are perceived them to be an additional administrative expense and burden with no value for time and money spent.
However, management accounts can be a very useful tool for businesses and help in the overall performance and growth of the business. Liam Burns & Co. encourage businesses to produce management accounts and substantially reduce fees to businesses for their preparation of annual accounts when management accounts are available.
Our aim is for your business to succeed
With your business growth and success in mind, regular management accounts can help you obtain vital information to make important decisions for the future of the business in the short and long term and identify the strengths and weaknesses of their business and its processes.
Some of the advantages of Management Accounts
Obtaining Finance
Financial institutions or external investors will be more inclined to offer finance to a company where solid management accounts are prepared on a regular basis. It provides confidence that the business owners are in control of the business and it processes.
In many cases, it is now a requirement of banks that up to date management accounts are provided before any finance or increases in overdraft facilities will be made available.
Making Key Decisions
Regular management accounts can assist management and owners in making important decisions such as whether or not to hire additional staff, use subcontractors, invest in advertising and promotions, continue or discontinue producing certain products and decide on optimal levels of stock.
Management accounts will provide up to date data and analysis of data to assist management in these decisions. Comparable figures with the previous period or the same period in the previous year allows management to quickly identify areas of improved performance of the business.
For example, if a decision were made to do an advertising campaign for a period during the year, management accounts would help identify the impact of the advertising by comparing the turnover in the a certain period against the turnover in the previous period or same period in the previous year. Inevitably, other factors may have influence but accounts can help identify these factors.
Business Growth
Understanding the factors that help increase revenue and decrease costs can assist management in actively growing the business. Management need to know which products or services are most profitable – management accounts help identify how the business can focus more on the more profitable revenue streams and/or lower costs associated with less profitable products/services.
Cash Flow
Management need to know how long the cash in bank will last and how much cash needs to be collected to meet the requirements of outgoings.
Quality management accounts will be accompanied by a cashflow statement and a cashflow forecast. This allows management to quickly assess what cash resources are available and the cash inflows and outgoings that are expected in the coming periods. This is vital part of any business and needs due care on an ongoing basis.
Disadvantage?
The major disadvantage to management accounts is the time and expertise required to producing these accounts.
What can we do for you?
Liam Burns & Co. are experts in this area and prepare management accounts at affordable rates. We also reduce annual accounts fees for clients’ where management accounts are prepared by us.
We prepare and present financial information on a timely basis to management and business owners. We analyse the data and highlight to management areas of concern that may require attention, areas for potential improvements and areas of high performance.
Based on the data, we will advise on any potential restructuring of the business or any measures that will optimise the growth and profitability for the business and its owners. We will also identify any internal control issues and ways to improve systems to ensure the success of your business.
Indicative Fees (excl. VAT)
- Monthly Accounts – From €250 per month
- Quarterly Accounts – From €350 per Quarter
- 6 Month Mgmt Accounts – From €500 per period
It is important to note that if monthly, quarterly or 6 month management accounts are prepared by Liam Burns & Co, the annual accounts fees will be reduced. Fees are also tax deductible, therefore, reducing actual cost to clients.
Actual Fees will be based on the time and professional expertise involved in preparation of accounts
"Experience with Liam Burns & Co working on my accounts has been excellent. Liam and his team were always one step ahead in account preparations and fast in responding to any queries; making it as easy as possible. I never had to worry about business account management which speaks for itself. "