Management accounts are mainly for internal use. A set of financial data from these accounts is used by management for their decision making. They are usually prepared on a monthly basis.
Cash flow projections
Cash is important for day-to-day running of business. Without cash businesses can become insolvent. Managers use cash flow projections to learn when to borrow due to short of cash or to invest withcash surplus to earn extra income. The goal is to make sure that their business has sufficient funds.
A budget is used by managers to monitor/control spending. Actual spending will be compared with the budget. An over budget spending should be closely scrutinised.
This is an analysis of deviation 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