# Monthly Management Accounts in Kent

> Year-end accounts tell you what happened months ago. Monthly management accounts show how the business is doing now. We prepare clear monthly reports on profit, cash and the numbers that matter to you, with commentary you can act on.

## What management accounts are

 

Management accounts are internal reports prepared each month, or each quarter, to help you run the business. Unlike statutory [company accounts](https://kentaccountants.co.uk/services/company-accounts/), there is no required format, so they can be designed around what you need to know. A good pack answers simple questions: are we making money, where is the cash going, and what needs attention?

 

Many owners rely on the bank balance as a guide to how the business is doing. That can be misleading. A healthy balance may hide a VAT bill, unpaid supplier invoices or a quarter of falling margins, while a low balance after a stock purchase may not be a problem at all. Regular management accounts put the bank balance in context, show trends over several months and let you compare performance against the targets you set at the start of the year.

 

## Who finds them useful

 
- Owners who want to know their profit before the year end rather than after.
- Growing businesses taking on staff, premises or bigger contracts.
- Companies with a bank loan or investors who expect regular figures.
- Directors deciding how much they can safely draw in salary and dividends.
- Businesses with several sites, departments or product lines that need comparing.

 

## What a typical monthly pack includes

 
- A profit and loss account for the month and year to date, compared with last year or your [budget](https://kentaccountants.co.uk/services/business-budgets/).
- A balance sheet with properly reconciled bank, debtor and creditor balances.
- Gross margin analysis by product, service or job where your records allow.
- Aged debtors and creditors, highlighting overdue customers.
- A note of tax liabilities building up, such as VAT and Corporation Tax.
- A short written commentary on what changed and why.

 

## How we produce them

 
1. We agree what you want to see and design the layout with you.
2. Each month we check that your [bookkeeping](https://kentaccountants.co.uk/services/bookkeeping/) is complete and reconciled.
3. We post month-end adjustments, such as accruals, prepayments, depreciation and stock movements, so the profit figure is realistic.
4. We prepare the pack and commentary to an agreed timetable.
5. Where useful, we talk the numbers through with you and agree any actions.

 

Management accounts work well alongside [cash flow forecasting](https://kentaccountants.co.uk/services/cash-flow-forecasting/). For businesses that want ongoing strategic input, our [outsourced finance director](https://kentaccountants.co.uk/services/outsourced-finance-director/) service builds on the same monthly figures.

 

## What we'll need from you

 

Access to your accounting software through its accountant invitation, stock figures if you hold stock, information on work in progress and any big events in the month, such as new contracts or lost customers.

 

## Monthly figures for Kent businesses

 

We prepare management accounts for owner-managed companies across Kent, from service firms to manufacturers. [Request a call back](https://kentaccountants.co.uk/contact/) to talk about what would be useful to see each month.

## Frequently asked questions

**Q: How are management accounts different from year-end accounts?**

Year-end accounts are prepared for Companies House and HMRC in a set format and look back over a whole year. Management accounts are for you, prepared during the year in whatever format helps you run the business. They can show detail that statutory accounts do not, such as margins by product or results by site.

**Q: Do I need monthly reports or would quarterly be enough?**

Quarterly reports suit many smaller or steady businesses and can tie in with VAT returns. Monthly reports are more useful if you are growing quickly, have tight cash, work on large jobs or report to a lender. We can start quarterly and move to monthly if it proves useful.

**Q: Do my records need to be up to date first?**

Yes. Management accounts are only as reliable as the bookkeeping underneath. If records are behind, we bring them up to date first. Bank accounts need to be reconciled each month, and sales and purchase invoices entered promptly, so the figures reflect what really happened.

**Q: Can management accounts help with tax planning?**

They can. Knowing your profit during the year means you can estimate Corporation Tax, plan dividends and time investments before the year ends rather than discovering the position afterwards. We flag points worth considering in the commentary as they arise.

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Source: https://kentaccountants.co.uk/services/management-accounts/
Contact: hello@kentaccountants.co.uk