Management accounts – cash flow

The final schedule of the management accounts is the cash flow. The basic format is: Opening balance Add: Cash receipts o Received from customers o Other receipts Less: Cash payments these can be shown in the categories which are most important to the business o Payments made to suppliers o Net salaries o PAYE/NIC o […]

Management accounts – the balance sheet current liabilities

Again current liabilities are a category on the balance sheet which most people would be familiar with. They are items which are owed by the business to third parties such as suppliers of HMRC and they consist of: • Trade creditors or accounts payable (AP) are the invoices received from suppliers • PAYE/NIC paid monthly […]

Management accounts – the balance sheet current assets

The current assets are the category most people would be familiar with. They are items which are expected to be converted into cash and consist of: Stock o Stock consists of the items purchased by the business to sell and is valued at the lower of cost or net realisable value o There should be […]

Management accounts – the balance sheet fixed assets

Fixed assets are broken down into tangible, intangible and investments. They are items which are needed to run the business and cannot be easily converted into cash and they consist of: Tangible assets o These are assets purchased to run the business such as computers, plant and machinery, furniture fixtures and fittings, freehold land and […]

Management accounts – the balance sheet basic format

As mentioned in the first blog on management accounts the management accounts consist of a profit and loss account, a balance sheet and a cash flow. The profit and loss account has been discussed in detail in previous blog posts and now we turn to the balance sheet. The top half of the balance sheet […]

Management accounts – the profit and loss account detailed format 2

This blog gives more details relating to the items shown in the previous blog post Management accounts – the profit and loss account basic format Expenses can be categorised into as many different categories and costs as required. In addition these can be further split by department if the reporting is required at that level. […]

Management accounts – the profit and loss account basic format

The format of the management accounts is tailored to suit your business. There are no rigid formats to follow unlike the statutory accounts. Preparation is eased if the general ledger is set up along the lines of the format of the management accounts. In addition if there are separate departments within the business, costs are […]