Management accounting is a forward-looking financial process that helps you understand how money flows in and out of your business so that you can make better business decisions.

Management accounting is the basis of good financial management. If you don’t understand your company’s finances, it is difficult to and control control costs, develop your business, source funding and stay competitive.

Most of the information in your management accounts comes from analysis of information already in your accounting system. It includes information about your company’s available cash, sales revenues, accounts payable and receivable, etc.  If you struggle to keep on top of your accounts, GroForth’s bookkeeping service can help you get back on track.

Management accounting reports are used for business forecasting, cashflow projections and business strategy formulation.

The information in your management report helps identify problems and provides projections so that you can make better informed business decisions. Examples of information included in the report include analysis of the performance of individual products, activities, departments, locations, suppliers, customers, operations and tasks. The report includes projections based on this information which you can then use to take corrective action where necessary as well as for business planning.

Many business owners lack financial expertise and need outside help to understand how to use financial information to improve their business performance. Outsourcing management accounting to a specialist service provider like GroForth gives you access to a team who understand the numbers and can generate relevant reports to help you make the right decisions for your business.