10/05/2026
*Management accounts* are financial reports which are prepared regularly during the year (monthly/quarterly) to help business owners understand how the business is performing.
Think of them as the business dashboard
rather than the year-end history that year end accounts show.
They typically include things like:
* Profit & Loss report
(How much money came in, what went out, and what profit was left)
* Balance Sheet
(What the business owns, owes, and what’s left)
* Aged Debtors & Creditors
(Who owes you money and who you owe money to)
* Budget vs Actual comparisons
(Are you spending more than expected?)
* Cashflow forecast
(Can the business comfortably pay its bills?)
But good management accounts should go beyond financial reports.
They should explain what the numbers mean, including what’s changed, what needs attention and what decisions might need making
The difference between bookkeeping and management accounts is important too.
Bookkeeping records what happened.
Management accounts help you understand it.
