Management Accounting provides an invaluable window into the beating heart of a business. It shows you how it is performing, where it might be struggling, or where the next great opportunity may be.
Management accounting is about identifying, analysing and communicating key financial information to decision-makers. This allows them make the right strategic decisions for the business.
Why is Management Accounting so important?
In business, data is always key. Robust data may be the difference between a wise investment and a waste of money. Without management accounts, company directors are piloting the business blindfolded.
Management accounting can help businesses calculate the best possible pricing strategies. It also helps determine the lifecycle of products, and can help the introduction of new ones.
From top to bottom, management accounts help business owners make smarter business decisions.
Do I need to hire a Management Accountant?
Management accounts are time consuming and need knowledge and expertise to get right. A dedicated management accountant will ensure management accounts are a priority.
If you want a management accountant in your team, there are a few options:
- Hiring a qualified management accountant brings knowledge and skills. This, however, is an expensive option.
- Training team members in Management Accounting may be a cost-effective way to introduce the skills. A lot depends on how much you invest in the training process.
Read more: How to make a Cashflow Forecast
Can you outsource Management Accounts?
Outsourcing to Management Accountancy specialists provides a balance between cost, commitment, and knowledge.
- You do not need to spend your time and resources training anyone.
- You do not need to commit to the employment of an experienced management accountant.
- You can tailor the service to align with your requirements and ambitions.
- You can gain an objective view of your management accounts, free from the internal politics and biases of business leadership.
- You get experts who have produced management accounts for a range of companies.
Speak to Genus today
Management Accounts can improve the overall strategy, direction and profitability of your business.
No matter the size and profitability of your business, Management Accounts can transform it for the better.Speak to Genus today to learn more.
Alicia Williams
Alicia is Director of the Genus team at Shorts, a chartered certified accountant and Xero specialist.
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