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Management Accounts

World class accounting from award winning chartered accountants you can trust

Management accounts are important accounting statements and information. Contained in them are information about profit and loss account, balance sheet, and cash flow forecast. Beyond preparing them, it is important for the management to study management accounts because of their importance to effective business operations.

Management accounts help business owners to work hand-in-hand with better information. This will, in the long run, help them to make an informed decision. Also, management accounts give business owners more control over the business. As a result of being able to clearly see operating margins, sales volumes and stock levels, owners will be able to decide on which internal and external resources to bring in.

Similarly, management accounts help a business to grow more effectively. When your management accounts are well prepared and the details accurately presented, you will be able to see downturns and plan for growth where necessary.

In addition, management accounts help to reduce the cost of annual audit and accounting costs. Definitely, you will be required to present information that relates to the financial position of your company by an investor, auditor or tax authority. We usually recommend that it is settled on a weekly or monthly basis in order to be able clear any discrepancy that is likely to occur. What happens when you have to wait until the end of the year to do so? It all becomes too enormous and quite impossible to track all the financial activities of the business from one period to another. If you are not careful, you may be sanctioned, end up paying high tax charges and possibly, lose investors. Other importance of management accounts includes improvement of cash flow, tax planning and management and cost reduction. Going by these benefits, you will agree with us that you cannot afford to take the business of management accounts with brevity.

It is often hard to combine management accounts with other enormous business requirements. Hence, it is best to hire an accountant to handle it or rather outsource. Whichever one you choose, what is important is ensuring that only the best hand is trusted with it.

Nordens can be trusted to handle your management accounting obligations in the most effective way possible. We are an exception because of the fantastic team of accounting experts. Instead of looking forward to producing historical management info by the end of a financial year, you can trust us to employ our analytical tools in recording your financial activities promptly.

Meanwhile, we will not stop at simply preparing your management accounts for you. We will take you through the process on a consistent basis so that it will be quite easy for you to engage your potential investors, auditors and tax authorities.

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 are the ones that will likely assist your business in effective operations. Our business solutions are available. You can get in touch with Nordens to find out how we can help your business.

Frequently Asked Questions

What are management accounts?

Management accounts are the nucleus of every business firm. They are a set of summarized information from a company’s balance sheet, cash flow and income statement. Management accounts are prepared weekly, monthly or quarterly. However, due to the usual challenge of tracking financial activities over a period of time and the usual issue of inconsistency of figures, it is advisable to stick to weekly preparation of management accounts. When management accounts are well prepared, a company is in a good position to make an effective managerial decision and also avoid unnecessary account auditing costs when the need arises.

What is difference between management accounts and annual accounts?

Both are important to any business but different to some degree. Well, management accounts are prepared all year round to provide information about the financial position of a business organisation using the balance sheet, cash flow, income statement, among others. Not only do they show the financial position of the organisation, but they also help to make an important operational decision. On the other hand, annual accounts entail formal statements about the activity of a company over a period of operation. Annual accounts are mandatorily a legal requirement while management accounts are not legally required. State legislations and regulators require the preparation of annual accounts.

What are management periods?

Management periods refer to the period in which managerial accounting statements are required to be produced. Due to the fact that management accounts are not a legal requirement, there is no time limit. Nevertheless, it is advisable for business owners to generate the reports within a weekly or monthly period. In as much as it is still important for effective business operations, engaging potential investors and dealing with tax obligations, a business will save itself from excess costs when management accounts are readily available. Since no one can tell when it will be needed, it is best to adhere to a weekly or monthly period consistently.

What are opening balances?

At the end of every business year, accounts are settled and closed. Then another accounting period will start. The amounts which a business has at the start of another period of time are called opening balances. Meanwhile, the business year does not automatically mean the end of the year. It may be a new accounting period for your own business or when a new accounting method is adopted by the business. The opening balances of a business are always clearly stated in the trial balance and it must be equal on the debit side and credit side of the entries.

What is closing stock?

Closing stock refers to raw materials, work-in-progress and finished goods inventory which a business firm has as at the end of a financial reporting period. Closing stock is also described as ending inventory. When there is proper count, closing stock can be used to ascertain the cost of goods sold during a business year, to show the number of unsold stock as well as the monetary value. Small business firms can do physical counting but for large business firms, it may be challenging to adopt such a method. Management software can be used to ascertain the amount of closing stock.

Beyond Accountancy

At Nordens we're more than just accountants, we're business experts who can help you achieve the biggest goals.

Nordens Strategic

Our specialist strategic division at Norden’s boasts some of the leading entrepreneurial business minds in the country. They cater towards delivering consistent success stories for businesses looking to achieve all their goals and more.

Through highly tailored guidance, coaching and advice, Norden’s Strategic are able to define exactly how your business can attain new levels of success.

Regardless of how you define ‘success’ for your business, our strategic service is guaranteed to bring about real and lasting change. By partnering with some of the UK’s top business coaches, we steer you along the path to greater future.

Accounting 2 You

Every business, no matter how big or small, needs to make the right decisions. How to best manage your accounts can put huge question marks over your business. Accounting 2 You are here to take that away and provide all the answers you need.

Our bookkeeping branch offers a fully inclusive, comprehensive service that they can trust. Since 2005, our specialist bookkeepers have been successfully managing the accounting of individuals and small businesses.

With experts in payroll analysis, credit control and financial recording, Accounting 2 You will lead your business efficiently and with a real purpose to help you grow and prosper.

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Chris Dyer

Director - Metro Bank

Nordens are always very easy to deal with and extremely professional and efficient. I would have no hesitation in recommending them to my clients for their accountancy needs, no matter how complex they may be.

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Co-Founder - Chicmi Limited

Very good to work with - the team go above and beyond to make the accounts easy and efficient. They're all super friendly and a joy to work with.

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Director - Rose Opticians

I have been using Norden Chartered Accountants for 5 years and very happy with the service provided. All members of the team are very knowledgeable and have a wealth of experience which has proved very beneficial to my organisation

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Founder & Director - Physio LDN

Very easy to contact and put me in touch with the right person whenever I need to ask any questions. Extremely knowledgeable and can help me manage my various businesses whenever I need.

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Principal - Pauline Quirke Academy

Great accountants, always available to offer advice. The team have transformed my business.

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Christopher Wilce

Founder - Dataphone

Having worked with Nordens over the last 5 years, not only to look after my annual accounts but they have also provided outstanding professional advice. They have guided me through a Company share buyback with clear and objective advice. We have also been using Nordens strategic services for a couple of years, which has helped bring about significant improvements that exceeded my expectations. With experience of working with several local accountants over my 29 years in business, I’m very pleased with the service I have received from Nordens.

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Director - Linekers

Trusted our business with Nordens for over 10 years now and watched the company grow into the successful innovative business it has become today. Deservedly so. Every aspect of financial advice we need is always given promptly and with a smile. We have total confidence in all aspects of advice Nordens give. If you are looking for accountants, its a no brainer!

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Founder - Foundation Sports Limited

A fantastic, modern, vibrant firm that care about the clients and their staff in abundance. It is rare to find an Accountancy firm with such vibrance and focus and relationships. It is no wonder they win award after award in their field.

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Managing Director - Prime Time Boilers

I have been with Nordens for many years now and they are a great accountants.

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Founder - Vivid Finishes

We have used Nordens for the last 5 years and have had a great service throughout. The guys are very passionate about what they do and have played a part in the growth of our company, highly recommended.

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Managing Director - AMD Interior Architecture

Great Service at Nordens from a friendly very approachable team Particularly Kirsty Willis and Joe Sword who have been helping us since we started the business in 2016.

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Director - Forma London

Nordens provide a first class service. We moved to Nordens last year and have been impressed with the level of service provided. Keep up the good work!

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Accounting 2 You

In November 2002, having sold our other business interests off earlier in the year, I decided to set up Nordens Chartered Accountants. The easy part was knowing how to do it, as I had established and built a smaller practice a few years earlier, the difficult part was not following the traditional accountancy path. Having run businesses, both successfully and unsuccessfully, I wanted to help business owners resolve their short term problems and work with them to achieve their longer term goals. Business has always been my interest and I love that I can help business owners achieve what seems like the impossible every single working day.

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