Statutory Accounts & Management Accounts

As well as preparing statutory accounts, we can prepare monthly, quarterly or interim management accounts, which provide clients with more current feedback on their business performance.

Management accounts and statutory accounts monitor the financial movements of a company and allow for reporting on current progress, previous successes and failures, and forecasting. The difference between the two types of accounts may cause confusion.

Statutory accounts are also known as financial statements or year-end accounts. Statutory accounts usually include a profit and loss report and a balance sheet, two of the main financial statements a business prepares. Statutory accounts are mandatory for all limited companies, and companies are required to submit statutory accounts to Companies House following the end of their reporting period. The primary reason for producing statutory accounts is to share annual financial information with shareholders and HMRC.

Management accounts are exclusively used for internal decisions. Many companies opt to create quarterly, monthly, or even weekly management account reports as methods of tight financial control. Management accounts do not need to be completed to official time frames or deadlines, only those stipulated by the business. These accounts are not mandatory. However, management accounts help plan for the future, allowing you to adjust your business's direction based on specific successes and failures. They are an invaluable resource when it comes to making choices about strategy and direction. Management accounting helps analyse and record financial information that a company can use to increase its efficiency and productivity. It presents the financial information at regular intervals. It acts as a valuable tool for better management of the business.