Management Accounting

Do you know your costs, where you sales come from, how much you really make per sale?

Running a company can be stressful and you can’t be across everything, to assist in making good business decisions you need to turn your accounts from a chore into a valuable business tool – this we can help you with. This information is not to be underestimated as you may be:

• undercharging,
• you may have costs that you think are fair but when “drilled down into” are not what you think
• Your best seller may not be contributing the best ROI (return on investment), i.e. your second best seller may actually return a better profit after costs are deducted.

Call us for a quote to run a business health check for you and you will probably find some surprising results which will more than pay for the cost of the report.

Management accounts can show you:

• amount of available cash
• sales revenue generated
• amount of orders in hand
• state of accounts payable and accounts receivable
• outstanding debts
• raw material and inventory

Using this information you can:

• See what products are performing well/not performing well
• See how long your clients take to pay
• See what are your fixed costs/variable costs with a view to reducing them
• See what your cost of goods sold are to make sure your pricing structure is correct
• Cash flow forecasts to see what your income is projected to be
• Look for sales trends to help plan for busy and quiet periods
• Look for trends in cost of sales/overhead expenses/direct expenses

Note: The main difference between Management Accounting and Financial Accounting is that management accounts are primarily for assisting owners & managers make decisions about their business whereas financial accounting is for providing information to parties outside the organisation like IRD, Banks etc.