What Is Management Accounting? The 2020 Vision

Management accounting in a nutshell is the process of identifying, analyzing and interpreting everything from business costs to operations, in order to create a strategic plan with goals that will improve company standards. Enclosed is information on your profit and loss accounts, balance sheets and cash flow forecasts. Management accounts can be prepared weekly, monthly or quarterly according to your needs. You as a company, cannot afford to make indispensable decisions without considering the implications and outcomes on your company beforehand. That’s where we come in…

 

We aim to improve the quality of information that is passed on to your managerial team about your business operation metrics. When the information is prepared and presented accurately, you will be capable of seeing downturns and understand our plans for growth properly. It also gives owners more control over their business. As a result of being able to clearly see operating margins, sales volumes and stock levels, business owners will be able to decide on which internal and external resources might be required to bring in.

 

Why use Nordens as your management accountants?

We stand out, because our incredible award-winning team of accounting experts work in real time. Luckily, there is no cut off time limit on management periods. Therefore, instead of waiting till the end of the financial year to start the process, you can trust us to utilize our analytical tools in recording your financial activities as they happen. We will regularly take you through the process to ensure that you fully understand everything. You will then be able to approach your potential investors, auditors and tax authorities with confidence and a strategy at hand. However, you never know when this information will be needed. Therefore, we advise sticking to a weekly preparation of management accounts to see statistics clearly. This is due to the challenge of tracking financial activities over a period of time and potential inconsistent figures.  Instead of making your decisions based on qualitative analysis, you as a business owner are able to use the information gathered within the accounts, as a decision-making tool. Similarly, we will always employ our own understanding of the relationship between management accounts and business growth to provide you with a review of key indicators. These indicators can help you in keeping your business running smoothly.

 

We know that this may be a relatively new concept to you. Click this link to visit our page with answers to all of the frequently asked questions regarding our strategic team – Click HERE 

 

How do our managements accounts service work and what are the benefits?

Well, our trusted and highly qualified ACCA accounting team and knowledgeable strategic team, are on the case for even the most complex of accounts.

  • Supply trend analysis
  • Help to reduce annual audit and accounting costs
  • Budget planning and comparison
  • Improvement of cash flow
  • Dedicated account manager at hand
  • Tax planning and management at cost reduction
  • Identify profit improvement potential
  • Simple and understandable plans that even non-finance professionals can work with
  • Expert ACCA accounting advisors

 

Did you know that management accounting could save you money?

In business, there is the age old saying, “cash is king”. Having a good management accountant can improve a company’s cash flow, deter excess cost expenditures and even help you stick to a budget. We, as management accountants can produce financial forecasts in relation to everything from your consumer demand, to your potential sales with new techniques or even the effects on your business with consumer price changes in the economic marketplace. You can use this information to determine whether you are producing enough goods or services to meet your consumers demands. You can also use it to check whether you are in line or superior to your competition. Using the business strategy of working capital management, we efficiently monitor that you are using your current assets and liabilities to the best effect. Work what you’ve got to maximize those profits!

 

Performance Measurement

Performance measurement is a key part of the strategic and operational analysis process. Once the strategic teams plan has been put in place, we are able to effectively monitor the progress and ensure that everything is performing well and meeting the targets we have set for your company. Decision support can be enhanced at all levels of the organization. We then know where accountability lays, whether it be at an employee level or organizational level and can continue to adjust our framework to aid these particular sections of the business.

 

Have a look at our management accounts page for more information on how Nordens can help Click HERE

If you have any further questions or are interested in booking a free consultation, please give us a call on 02085300720. Alternatively, email us at enquiries@nordens.co.uk