For a business to be successful, it is essential to have access to relevant information at the right time. Nowhere is this more apparent than when looking at your finances. You might not feel the need to dive deep into the numbers apart when it’s time for your annual report to be filed. But a forensic and more regular examination of your finances through management accounting can be such a useful exercise.
At Kreston Global, we know that strategic management accounting and reporting isn’t always at the top of your list of your priorities. It’s understandable that you’d want to focus your efforts in areas that’ll have the biggest and most immediate impact. Here, though, is where our specialist team of advisers can help. As part of our extensive advisory services, we offer specialist accounting and business management expertise – and we can deliver it as an extension of your team.
What is management accounting?
How often do you engage with accounting professionals? If the answer is either once or twice a year, it could prove to be a mistake. After all, risks and opportunities don’t just emerge when it comes to filing your annual reports. That’s where management accounting comes in. Instead of taking a passive approach to your finances, it can help you to get on the front foot.
The definition of management accounting is a self-explanatory one. It’s a practice that looks at the financial performance of your business. More often than not, it’ll be business managers and owners who want and use it. The insights that management accounting reports provide can then shape strategic – and appropriate – decisions that can grow the organisation.
What are the primary functions of management accounting?
There are many reasons for management accounting. Each reason contributes to the effective and sustainable running of a business, and each can have short- and long-term benefits depending on what they are and how they’re implemented. Some of these functions are:
- Planning and forecasting: Immediate cash-flow or long-term market predictions – no matter what future insight you need, accounting management solutions can offer them. From this, you can get informed answers to key strategic questions.
- Decision-making: In an ever-evolving business landscape, supply and labour costs can shift on a monthly or even weekly basis. Your management accounting report is a means by which you can be flexible and proactive in critical business decisions.
- Monitoring and measuring: Data is fundamental to the success of your business – and management accounting can give you the means to collect, control, monitor or measure it. It’s useful for setting realistic KPIs – and tracking progress against them.
How our accounting management solutions can help
We appreciate the various reasons why companies don’t always see management accounts as their top priority. If nothing else, it can be a real drain on time and resources. But it’s also important not to dismiss the benefits of management accounting systems and solutions.
So what’s the middle ground?
For us, it’s entrusting your needs to a specialist provider of management accounting services – like Kreston Global. What we’ll do is furnish you with the regular insights, analysis and details that you need. That can result in improved decision-making, plus enhanced profitability and efficiency.
What we can deliver is based on your specific needs. We can produce management accounting reports with robust profit/loss accounts and a balance sheet. On top of that, we can contribute to cash-flow forecasts, revised business plans or strategic recommendations for your business.
Why choose Kreston Global?
We offer management accounting capabilities as part of our expert business advisory services. Where there are challenges, we will help to find solutions. Where there are opportunities, we will ensure that you’re prepared to take full advantage.
A significant benefit of choosing Kreston Global is the depth of expertise on which you can lean. We have built a network that spans 110 countries and more than 160 firms so, whatever you need from us, wherever you need it, our network gives us that reach and access to relevant expertise.