Preparing Management Accounts

In these hard pressed times, many small businesses need to make important decisions quickly to ensure that they stay in business. Decision making depends on having the correct information to hand whilst ensuring that this information is accurate and up to date.

Many companies running  their business on Sage Accounts or some similar accounting software become frustrated when they realise that they cannot acquire the correct information from the system.  In our experience working with SMEs over the years, there are a number of possible reasons for this such as:

  • The auditor adjustments from the last audit were never posted to the system
  • The bookkeeper does not account for depreciation or accrue for goods delivered but not yet invoiced
  • There is no system in place for monthly stock valuations
  • Bank reconciliations were not being done properly so not all the expenditure was being picked up
  • The chart of accounts was not properly designed to produce the information required
  • Some expenditure was being posted to the incorrect headings for example, Repairs and Maintenance being posted to Fixed Assets

Many bookkeepers in small companies may not appreciate all of the above issues, but with the right training and intervention, should be able to produce accurate Management accounts for the owner/manager on a monthly basis.

Here at Synergy Network, we  have worked with a number of small businesses recently to sort out their accounting software and train staff to produce monthly accounts. If you would like to avail of our expertise or you are concerned that you are not making the best use of your accounting software, please contact James Doyle on 071-9146815 or email jdoyle@synergynet.ie