Service
Management Accounting
Audited financial statements arrive months after the year-end. Management needs reliable figures every month to decide on prices, costs, staffing and investment. We prepare management accounts, budgets and forecasts, and we analyse them with you.
Overview
Audited financial statements arrive months after the year-end. Management needs reliable figures every month to decide on prices, costs, staffing and investment. We prepare management accounts, budgets and forecasts, and we analyse them with you.
Our Understanding of Your Needs
Many growing businesses keep their books mainly for tax and audit. Reports are late, and branch or product profitability is unknown. Cash shortages are a frequent result. Lenders and investors also expect regular management reports, and a business that cannot produce them may lose financing.
Our service can replace an in-house function or support an existing finance team. We also help companies implement accounting software and ERP systems so that reports come from the system and not from spreadsheets.
Scope of Service
Monthly and quarterly management accounts
Annual budgets and rolling forecasts
Cash-flow forecasting and working capital analysis
Product, branch and customer profitability analysis
Standard costing and cost reduction reviews
Variance analysis with management commentary
Key performance indicator dashboards
Board and lender reporting packs
Outsourced bookkeeping and accounting
Accounting software and ERP implementation support
Our Methodology
We first design a reporting system that fits your business, and then run it each month.
- 1
Diagnostic
- Review of chart of accounts, systems and current reports
- Interviews with owners and managers on the decisions they need to make
Output to you: Diagnostic report
- 2
Design
- Restructured chart of accounts and cost centres
- Reporting pack template and key performance indicators
- Month-end close calendar
Output to you: Approved reporting framework
- 3
Monthly close and preparation
- Bank and control account reconciliations
- Accruals, prepayments and depreciation
- Preparation of management accounts
Output to you: Monthly management accounts
- 4
Analysis
- Budget and prior-period variance analysis
- Trend and margin analysis
Output to you: Written commentary
- 5
Review meeting
- Presentation of results to management
- Agreement of actions
Output to you: Action log
- 6
Improvement
- Quarterly review of the reporting pack
- Refinement of budgets and forecasts
Output to you: Updated framework
Deliverables
01
Monthly management accounts with commentary, normally within 10 working days of month-end
02
Annual budget and quarterly forecast updates
03
Thirteen-week cash-flow forecast
04
Key performance indicator dashboard
05
Board and lender reporting packs
How We Add Value
Our management accounts are prepared on the same basis as your statutory accounts, so year-end adjustments are small and the audit runs faster. Commentary explains the reasons behind each significant variance and suggests a response.
Our partners have managed finance functions in industry and have prepared management information for boards. We know which figures a board actually uses.
Applicable Standards and Regulations
- CIMA management accounting principles
- IFRS as adopted in Nigeria for the basis of measurement
- lender reporting covenants where applicable
Frequently Asked Questions
Many in-house accountants focus on bookkeeping and tax. We can work with your accountant to add analysis, budgeting and board reporting, or review their work each month.
Speak With a Partner
Ask for a sample management reporting pack.