Management reporting

To make the best decisions in business, you need accurate, reliable, and up-to-date information and analysis.

Real-time Business Reporting

To make the greatest return from your business, to manage cash flow properly, and to create a durable, stable business which will provide you and your family with a good income for years to come, it’s best if you know everything there is to know about your company’s financial and operational performance.

To do that, the Business Bookkeeper produces a range of accounting management reports which will help you understand everything from how much profit you’re making, how much cash you should keep in your account to meet your bills, and which of your clients persistently pay you late.

The better you understand your business, the better the decisions you’ll make. To find out more, please contact our team on 020 3137 6565.

Why you need accurate bookkeeping for better management reporting

Online accounting platforms like Xero, are very powerful tools for any business. Most business owners’ first introductions to these software packages will have been via their accountant who normally bundles access to these platforms within their monthly fees.

However, there’s a problem. To operate online accounting and bookkeeping platforms like these, it’s best if you have an accounting or bookkeeping background. Accounting and bookkeeping are complicated professions where you have to study for years to be able to do it well for your clients.

These platforms do a superb job of centralising information and providing methods of analysis but the quality of the management reports and analysis they produce depends on the accuracy, the timeliness, and the thoroughness of the information being entered into them.

Many business owners and accountants have recognised that fact in the last year or two and begun re-engaging with the quality and informed services provided by the Business Bookkeeper.

Once a month (or at a frequency you prefer), the Business Bookkeeper will bring your financial records completely up to date with every invoice and expense correctly classified.

Accurate bookkeeping leads to insightful management reporting. But what can management reporting tell you?

What types of management report can you run?

With reliable, contemporary, and HMRC-compliant data uploaded to your online accounting and bookkeeping platform, you can run any report you want on the variables it contains over whatever time period you choose.

The most popular reports our clients ask us to run for them include:

Profit and loss reports provide a summary of your business’s level of sales and the expenses it incurs.

They’re useful because they demonstrate how good your company is at finding revenue and how good it is at managing the revenue it takes in to create a profit.

Over time, you can ascertain an average level of profit or loss at different points of the year to determine whether your current performance is better or worse that its previous performance.

A balance sheet is a statement which contains your assets and liabilities at a particular point in time as well as providing a snapshot of what your business owns, what it owes, and how much has been invested into it by shareholders or business owners.

A balance sheet is useful for discovering the intrinsic positive or negative value of your business, whether it has enough cash (or assets it can turn quickly into cash) to cover its obligations, and how high its indebtedness is compared to other businesses in the same sector.

Your cash flow forecast (sometimes called a cash summary) estimates how much money you’re likely to have in your business bank account at a given point in the future by analysing the movement of money in and out of your account over a period of time.

Cash flow forecasts may indicate that you need to generate extra sales to meet forthcoming liabilities like VAT, PAYE, loans, supplier invoices, and other taxes or it may indicate a likely surplus of cash meaning that, should you choose, you could pay yourself more or use that money to invest in your business (for example, in extra staff, extra space, new locations, and so on).

Your accounts payable report shows what your business owes to other people and businesses and this is normally made up of the services, supplies, and stock you buy in but not wages you pay your staff or taxes which you owe to HMRC or any other public sector body.

The reports tracks who your creditors are, how much you owe to creditors as a whole and individually, and how long those debts have remain unpaid. You can use them to determine whether your business relies too much on the credit terms extended to it by its suppliers, to prioritise payments to important suppliers when cash is tight, and to negotiate invoice payment terms (for example, ask for a discount for paying early or before due date).

If you sell on credit, particularly to businesses, your accounts receivable report helps you discover which clients pay you on time and which pay you late.

They provide you with the information you need to set credit limits if you don’t use an invoice factoring firm so that you can protect yourself as much against bad debt as possible.

You must always understand who owes you what and when you’re likely to receive payment to have any chance of creating a financial stable business.

How can you help me analyse the information?

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The reports above are very useful across all businesses but every business is unique. Perhaps there are reports specific to your business and how you want to run your business. If there are and your online accounting platform captures the information needed to produce these reports, you can access them every time we update your books.

As part of our service, we’ll help you analyse each report to discover the most important and useful information you need to run your business better. Depending on how long you’ve had your online bookkeeping platform, we’ll be able to run historic reports to compare your financial and operational performance now compared to the past.

The team at Business Bookkeeper works with dozens of different businesses of all sizes and in various sectors. We welcome the opportunity to work with you on producing the reports you need and helping you use the information they provided to run a better, more stable, more profitable business with better cash flow.

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Part of a complete bookkeeping solution

We’re the Business Bookkeeper, a team of experienced, approachable, professional bookkeepers. We keep our clients’ financial records up-to-date, accurate, and correctly classified throughout the year. To find out more, please call us on 020 3137 6565 or email us to get in touch.