Statutory accounts tell you what happened last year. Management accounts tell you what is happening now, in time to act. For most SMEs they are the most valuable report in the business.
The core pack
- Profit and loss for the month and year to date, against budget and last year.
- Balance sheet, with debtors, creditors, stock and cash.
- Cash flow and a short forecast for the next 13 weeks.
- Aged debtors and creditors.
- KPIs that suit the business, such as gross margin, debtor days, or revenue per employee.
- A one-page commentary: what changed, why, and what to do.
Tax lines to watch
| Item | Why it matters |
|---|---|
| VAT owed | Paid one month and seven days after each VAT period |
| PAYE and NIC | Paid monthly to HMRC |
| Corporation tax provision | Paid 9 months and 1 day after year-end |
Setting cash aside for these each month avoids year-end shocks.
How fast?
Aim to produce management accounts within 10 working days of month-end. Older numbers are history, not management information.
Getting started
Start with a simple pack, agree the KPIs with the directors, and add detail only where it changes a decision.
Get a proposal for monthly management accounts.
Frequently asked questions
No. They are for running the business. Statutory accounts are what the law requires.
Monthly for most SMEs, within about 10 working days of month-end.
