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Management accounting services in Bracknell

Management accounts

A set of financial data from these accounts is used by management for their decision making that will affect the company future. They are usually prepared on a monthly basis.

Differences between financial and management accounting

  1. management accounts are for internal use by managers of an organisation while financial accounts can be used by any stakeholders such as shareholders or creditors
  2. information in management accounts is future-looking while information in financial accounts is historical 
  3. information in management accounts is confidential within the management of organisation while information in financial accounts is made public
  4. management accounts are prepared based on the needs of managers while the preparation of financial accounts must follow accounting standards
  5. the focus of management accounts can be on a division, department or cost centre while the focus of financial accounts is on a whole company

 

Cash flow projections

Cash is important for day-to-day running of business. Without cash businesses can become insolvent. Businesses with liquidity problems are unlikely to survive. Cash flow is a moving or flowing of money in and out of a business. Cash flow projections are therefore one of the tools used by managers to learn when to borrow due to cash shortages or to invest with cash surplus to earn extra income. The goal is to make sure that their business has sufficient funds to survive.

Budgeting

Budgeting is a plan to spend the money. A budget is used by managers to monitor, prioritise and control their spending so that cash is spent on the most important thing first. Actual spending will be compared with the budget. An over budget spending should be closely scrutinised.

 

Variance analysis

This is an analysis of deviations from budget of actual amounts. High deviations need close attentions from management. Both revenue and expenditures can be analysed. There are 2 types of variances:

  • Favourable variance (F): the actual results are better than the budget
  • Unfavourable variance (U): the actual results are worse than the budget

Our team will be pleased to offer our expertise. Our affordable management accounting services include:

  • Management accounts
  • Cash flow projections
  • Budgeting
  • Variance analysis

Why choose MW Accounting Services in Bracknell?

  • professional services
  • fixed price
  • friendly, timely and economical services
  • services to suit all business needs

 

Need management accounting services?

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MW Accounting Services

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Mob: 07515-788-795
Email: ask@mw-accounts-services.uk

Website: www.mw-accounts-services.uk