A business has a legal obligation to provide financial accounts at some level, but these are often little use as a decision-making tool for business managers. Management accounts consists of company data analysed in such a way as to tell managers how different company systems are performing. Most financial software programs will give a range of different management reports which can give a timely overview of business performance.
Sales figures – Useful reports can be produced on different time frames. Monthly, Quarterly and Annually, usually with comparisons with a similar earlier time period. So it can answer the questions “How are we doing this years as compared with the same time last year”. Reports by customer or by product or service item can give key information about particular trends managers would not particularly notice without the reports. Reports will also give aging reports of debtors.
Purchasing information – Some companies will need reports on stock records and creditors to enable appropriate time frames for payment of bills.
Asset Register – some companies will need a record of all fixed assets, when they were purchase and the costs
Employee data – Management accounts should also be able to give up to date information about employees, relative costs, and such impact on staffing changes. Staffing costs can also be interrogated for changes in PAYE and other costs.