A. The benefits are numerous with the main ones being:
Cost Control - Producing monthly/quarterly management accounts can help to identify increasing overhead costs and allow you to address these efficiently e.g. changing utility suppliers for a better deal, amending staff rotas to control labour cost
Cash Management - Even the most profitable businesses can experience cash flow issues from time to time and using management accounts to be able to identify and plan for these can be the difference between a prosperous business and a penniless one
Motivate Staff - Regular performance updates shared with senior/key staff can be used to ensure that performance targets are regularly achieved
Facilitate Financing - Having up to date management accounts to present to a bank with a lending application can assist with a favourable decision as the bank is getting an up to date view of business performance rather than relying on annual accounts which could up 12 months out of date.
Keep your eyes on the road ahead - As a business owner, you are faced with crucial decisions which affect the future of your business almost on a daily basis. It is vital that you have the most up to date information to assist you when making these decisions and well prepared relevant management accounts can be the key to unlocking the potential of your business.
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