Your current accounting system may be focused on accounting for tax, but we believe that you deserve more to assist you in achieving maximum profitability and added value for your business by helping you to understand what makes it tick, to use that knowledge to plan for the future and provide information to solve today’s problems quickly.

We provide a specialist management accounting service to small and medium-sized businesses and organizations with or without traditional annual accounting and tax services.

The main problems with traditional tax accounting are the difficulty of quickly establishing true profitability and the lack of management tools. We saw the need for our clients to understand and monitor their position to maximize their business value.

These services focus on your needs:

• Software installation, training, implementation, customization, and ongoing support.
• Working with you to use your accounting system as a business management system.
• Use our specialist knowledge of the software to solve business performance problems, conduct new project evaluations, and regular health checks on your data.
• Prepare your annual financial statements and tax returns as a by-product, not an end product.

An effective management accounting system provides you with:

• Profit & Loss and Financial Position Reports.

The primary tools for financial management which we will set up to be available “at the press of a button”. If you have trading stock, work in progress, debtors, and creditors, you cannot rely solely on your cash position.

• Key Performance Indicators.

We recognize that most business owners are not accountants and need more time to review detailed financial reports. Our Key Performance Indicator reports show your results at a glance, helping you quickly identify trends.

• Cashflow Reports and Forecasts.

Profit is only part of the picture, and you also need to know where the cash is going. You can make good profits but always be short of cash due to high debt servicing, capital expenditure, or personal drawings. We can identify these problems and recommend action.

• Business Plans & Industry Comparisons.

A Business Plan is not just prepared for your bank manager and then put in the bottom drawer - it should be part of an effective financial management system. A realistic annual budget and cash-flow forecast will tell you where you will be in 12 months, and comparison with actual results will keep you on track.

A comparison of your Key Performance Indicators with the rest of your industry will help you assess your competitive position.

We will monitor the Key Performance areas of:

• Revenue – to identify which products and services drive your profitability.
• Gross Profit is the pulse of your business. This is the profit after deducting the direct costs of producing revenue, such as the purchase of stock and materials, wages, etc., and determines the effect that growth in revenue from different products will have on your bottom line. The system provides the data to establish your Break Even Point, develop growth strategies, or identify problems.
• Overhead Expenses are compared to the budget, and major variances are highlighted. These are costs, which are largely fixed amounts regardless of revenue, such as rent and administration. An industry comparison of revenue, gross profit, and overheads will help you to assess your position in the market and to decide how you approach the pricing of your products.
• Net Profit equals Gross Profit less Overheads, followed by the Cash-flow Report, which deducts debt repayment, asset purchases, drawings, and tax to arrive at a final Cash Surplus or deficit. The Tax position is reviewed in the light of the actual profit for the period. Considerable savings can be made in Inland Revenue interest and penalties or bank interest by paying provisional tax during the year based on the actual profit rather than last year’s profit.
• Return on Investment is a statistic that is often overlooked. The business owners need an adequate return on their equity; otherwise, they might sell up and work for wages.
• Cash Position is as important as profit. The system keeps track of Working Capital, which comprises stock and work in progress, debtors and creditors, and banks, which together dictate the ability of the business to meet its commitments. The Budget and Cashflow Forecast indicates where the cash position is headed and if corrective action is needed.
• Financial Position report or Balance Sheet sets out all assets, liabilities, and Owners' Equity or Net Assets. This is a snapshot of the business's overall financial health and will also highlight any action required, which may be as simple as shifting short-term debt onto long-term borrowing.