One of the single most important management tool for sustained profitable growth is any company are the monthly management accounts. Too many SME’s fail to have these presented to the management team in a timely and accurate manner every month.

The management accounts will keep the company on track and ensure that the company’s plan and profitability are on target. They allow for accurate and appropriate surveillance over the key costs such as Material Costs, Labour and Overheads. Intimately knowing the ‘numbers’ in your business is an essential part of the toolkit for effective, efficient and profitable growth.

Spotting favourable and unfavourable trends in the accounts allows action to be taken post haste so as to minimise potential losses and maximise potential increased profit opportunities.

Having quality financial information ensures that all members of the management team are aware at all times of the financial status of the business thus enabling vastly improved decision making based on hard economic facts. This prevents well-intentioned but misplaced decision making entirely based on ‘gut feelings’.