In today’s world, companies are discovering more ways to capture and analyse data. However, this activity is only useful if it can provide valuable data feedback, which the users can interpret and use to their advantage. In terms of information regarding financial performance, companies are turning to Management Accounts production to create strategy and value for their business.
Management Accounts are different from Annual Accounts in several ways.
The main difference is that Management Accounts are produced on a monthly basis and are therefore more proactive in nature than Annual Accounts; which are prepared up to nine months after the company’s year-end and as a result, out dated when published.
In this respect, Management Accounts allows management to analyse and manage their performance proactively.
Decision-making can be impacted across the business by the provision of real-time financial data in areas such as cost analysis, budgeting, knowing which markets to target, determining whether to buy in products or even to manufacture your own.
Our work with a client in the pharmaceuticals sector, to implement and produce management accounts on a monthly basis, is producing the following benefits for them.
The production of relevant and up to date financial data makes effective cost analysis possible and allows for the client to address areas where spending had become out of control. They are now able to identify which suppliers have the highest costs and evaluate new suppliers to reduce these costs.
It becomes difficult to do such analysis from a set of Annual Accounts and take back control, due to how long ago the data being analysed was.
AMAS are one of Scotland’s leading Management Accounts specialists, with numerous experiences in the implementation and production of Management Accounts.
Take control today with a free consultation. See what AMAS can do for you and your business.
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