Management Accounting provides an invaluable insight into the current financial state of your business, how it is performing, where it might be struggling, and even where new business opportunities could be explored.
Management accounts allow business owners to see how their business is doing, where they can make improvements and make vital financial decisions about the future of their business, but what exactly are they? In this blog, we will explore what management accounts are, how they are prepared and answer the most common questions we get asked about them here at RJF Accounting.
What Are the Benefits of Management Accounts?
Data is the driving force of much of what makes a business work and can help business owners make important decisions about the here and now and any decisions about the future.
Management accounts are one such form of data that offers insight into the business as a whole, where the business is losing money, what products or services are the most profitable, or what changes could be made to streamline expenses and make the business more profitable. If you are running a business without utilising management accounting, you are doing so with one hand tied behind your back.
To name a few benefits of management accounts and how they can help your business, they can provide:
- Insights into which products/services are profitable.
- Help you understand staffing requirements.
- Spot financial efficiencies and investment opportunities quicker.
- Help with budgeting and forecasting.
Do I Need to Hire a Management Accountant?
So now you know the benefits of management accounts, you might be thinking do I need to hire a specialist management accountant? Well, the answer is yes and no…
Management accounts are time-consuming and require detailed insight and knowledge of accounting and business practices. If you want to have the benefits of management accounts and all that they bring, you have two options:
- Outsource it to a management accountant
- Train internal staff to do it
Both options have pros and cons, such as outsourcing being an additional cost to the business, but training internal staff also has a price and might not get the same results as hiring an expert. This means it all comes down to your personal choice, what you want to achieve, and how quickly.
The benefits of outsourcing your management accounting to a specialist firm like RJF Accounting can be more cost-effective however and stress-free. Outsourcing to us can offer the ideal balance between cost, commitment, and knowledge:
- You do not need to spend time and resources, training staff.
- You do not need to commit to the long-term employment of an experienced management accountant.
- You can tailor the service to fit your organisation’s requirements.
- We can view your management accounts objectively, free from business leadership’s internal politics and biases.
- You get experienced experts who have produced management accounts in various industries.
Speak To RJF Accounting Today
If you are considering hiring an accountant for management accounting services, why not speak to the team here at RJF Accounting? We offer services tailored to all businesses, from startups to established companies. Our management accounts bring all the data and information you need to make vital business decisions, so you have one less thing to stress about and can get on with running your business.