Statutory Accounts
These accounts are a legal requirement for all limited companies or partnerships and must be completed every year. Usually, these accounts contain a profit and loss (a breakdown of income and expenditure), balance sheet (a breakdown of assets and liabilities), and notes that support these figures. While these can be useful, they are generally completed a few months after the company’s year end, meaning that they only ever give you a historical view of your company. This is where management accounts come in.
Management Accounts
Unlike the statutory accounts, management accounts are not required and completed based on your needs. Generally, management accounts are more useful to get an up-to-date view of your company and for checking growth as they are completed within a few weeks of the period you’ve chosen to run them for. For example, for management accounts to 30 June 2023, you would aim to get them completed by the middle of July 2023.
These accounts do contain the same reports as the statutory accounts but can come with an additional report depending on your requirements. A regular management pack can contain some, or all of the following:
- Sales performance and analysis
- Profit and loss
- Balance sheet
- Cashflow
- Key performance indicators
- Cashflow forecasts
- Profit analysis
If you would like any further information on management accounts, please get in contact with us.
