There are many benefits to choosing to receive monthly management accounts from Fairmile:
Reviewing monthly management accounts ensures you are able compare costs at regular intervals, identifying savings that can be made.
Cash in the bank sometimes gives a false sense of security – Monthly management accounts make it easy to quickly identify gaps, enabling solutions before problems become critical.
Avoid surprises at year end
Business owners usually have a grasp of sales / regular costs throughout the year. However, without monthly management accounts, it’s difficult to monitor anything unusual / to factor in accounting concepts such as accruals and depreciation, resulting in year end results differing from expectations. Monthly Management accounts ensure visibility to the full picture as the year progresses.
Identifying seasonal differences
Monthly management accounts enable you to track / analyse each individual month, so that you can clearly see the impact and better plan for the next year.
Tax Planning and Dividend Payments
With up to date date information, a director/owner can plan with greater confidence. This approach may be helpful in legitimately reducing the tax liability of the company, and to maximise the potential benefits by payment of dividends, as opposed to salary.
Accounts are a useful visual aid to focus performance. It’s often helpful to share monthly management accounts with members of staff, to explain reasons for reducing costs / increasing sales etc.
If you are raising finance from a bank or investor, a good business plan, supported by monthly management accounts can dramatically improve your chances of success, especially if the business performance has changed significantly since the last financial year end.
Detection of Fraud
A regular review of financial performance of the business will increase the possibility of detecting fraud or other malpractices.