Accounts can often appear like a long list of numbers. But what do they mean? Where do you start?
Within your numbers there are typically just 2 or 3 numbers that are absolutely critical to your business. These numbers may change over time, as your business will evolve, improve or fall behind in other areas. We will help you to find those key number so that you can manage your business with just a few really important performance measurements.
Annual accounts are mandatory when it comes to running a business, but that doesn’t mean we can’t look at how your business is performing throughout the year. We will analyse your performance and produce more frequent accounts - These accounts are known as management accounts. This means that financial challenges and problems can be spotted and corrected quickly. They also mean that you as the business owner know your financial position more regularly which should lead to a better result for the year.
Quarterly management accounts will tie in with your VAT returns (if registered), and looking ahead, HMRC will start requiring quarterly reporting (rather than annual reporting) from April 2019. With quarterly accounts you will be compliant when the changes affect you.
Monthly accounts provide even more financial information, keeping you constantly informed about your financial position. Technology means that ‘real time accounting’ is possible, with monthly accounts prepared just days after each month end. When combined with our premium bookkeeping service we will keep your financial information up to date weekly.
Strategic Planner, Xero.
Guy Robinson is the founder and Managing Director of Xebra Accounting, specialising in strategic planning for small to medium sized businesses.
023 8000 1313