What is the difference between management accounting and annual accounts?
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Annual accounts are a static document which report your activity during that year and your final position at year end
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Management accounting provides you with real time analysis of your financial position
Management accounts provide key financial information, enabling you to make informed day to day and short term decisions. A set of accounting data including balance sheet, cash flow and income statement can be prepared and presented weekly, fortnightly or monthly to give useful, timely information for management.
In today’s business environment everything changes rapidly. It is important to respond just as rapidly in order to survive and prosper, so regular management accounts are valuable for every business.
Management accounting has several advantages and can pinpoint where companies could improve operations and overall profitability by:
- Reducing expenses
- Improving cash flow
- Increasing efficiency
- Enabling well informed business decisions
- Tracking variances between budget and actual figures
- Increasing financial returns
Our accounting team work with you to design management accounts appropriate to your business. For small businesses, periodic cash flow reports may be adequate. Larger businesses might benefit from more in depth information on a more regular basis.
RSM New Zealand use flexible systems that can be customised to suit your business today, and that can be adapted as your business changes and grows.