Brentwood accountancy practice MJ Bushell is urging business owners not to overlook the importance of management accounts.
The leading firm has warned that businesses that overlook management accounts could miss out on important opportunities for growth or fail to spot the warning signs of financial ruin.
Dan Sayers, a Director at MJ Bushell, said: “Management accounts are an essential monthly ‘health check’ for businesses, providing information that is crucial for keeping on top of cash flow and getting the most out of a business’s growth.
“A strong set of management accounts should include information such as profit and loss reporting, balance sheets and cash flow statements,” he said, arguing that any businesses that fail to keep on top of these pieces of vital information are likely to be unprepared for any unforeseen challenges which might arise.
“Without a sufficient overview of the ins and outs of its cash flow, the business could be at risk of missing the warning signs of any problems until it is too late.”
Dan said that management accounts could be beneficial in a wide range of circumstances, including where business owners are looking to sell up or to acquire a new business or premises.
They can also be helpful for businesses looking to expand or make changes to their strategy, giving them up-to-date figures to base their judgements on, he added.
“Management accounts can be offered to finance providers when applying for business loans or other products, often increasing the chance of approval,” Dan said.
“At first glance, many businesses that are unaware of the importance of management accounts will dismiss them a non-essential. But, in reality, being confident in your decision-making capability at all times is the key to running a successful, flexible business.”
To find out more about MJ Bushell’s specialist services, please visit www.mjbushell.co.uk or call 01277 245300.