An FD is always reviewing (management) accounts for clients/potential clients and we take for granted the value of doing so. Some businesses take advantage of this expertise but others wait until after the year end for the statutory accounts. So why do we regularly review the management reports:
- to ensure accuracy
- identify profit improvement opportunities
- guide cashflow forecasting
- assist with planning and hence predictability as the basis of decision making.
Of course the detail will vary in every case but its good to have a starting point. And how much benefit you get from the review is often linked with how often and when it is done – and what information is available.
The numbers tell a story – by reviewing the accounts a business owner may stand a better chance of ensuring there is a happy ending.
