Management accounts are a vital tool to run your business successfully. The two financial statements that are the backbone of this are the Balance Sheet and the Profit and Loss statement. 

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The balance sheet shows you the value of the company at that moment in time, broken down into what assets the company has minus the liabilities and balanced against the profit and loss of the company and the equity introduced by the owners. 

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The profit and loss statement inform you how much money the trading has produced by taking the total sales away from the total costs, either a profit or a loss.

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Both statements are important and give an overview on the financial health of the company, however, depending on your company and its specific KPI’s, you’ll need much stronger financial data to understand the how and the why of how you’ve created the profit or loss. Full analysis of the P&L allows the directors and owners of the company to see trends, profitable products or services, expensive costs centres, performance against budget or previous periods and unexpected sales or costs. Analysis of the balance sheet allows ratio data on the financial health and success of the company, invaluable to the owners, shareholders and external stakeholders.

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Instant Insight will analysis your company’s data, read and discuss your business plan and work together to design and assess what management accounts are pertinent to help the directors meet their goals and understand the data.