Management Accounts

The profit and loss (P&L) account summarises a business's trading transactions - income, sales and expenditure - and the resulting profit or loss for a given period. The Balance Sheet gives an overview of the assets and liabilities of the Company at a given point in time.

It is important that all businesses, no matter how small or large understand where they are at any point in time especially in relation to cash flow.

As the markets most people operate in now consist of a number of sales streams, retail sales, credit accounts, internet, foreign etc. it is more important than ever to ensure that you know where your business is as at any point in time. For companies struggling and possibly likely to fail this is now a critical process to avoid the possibility of "fraudulent trading".

MHR offers reporting and advice tailored in terms of layout, content and size, to your organisation and the following is just an indication of what might/might not be included.

Profit & Loss Account – P&L

Analysis of income by type of revenue, groups of product
Analysis of the materials used in the production of the product or the cost of the product if bought in a "finished" state

Monitoring of "Gross Margin" etc and analysis of trends etc to assist in maximising GM and highlighting potential issues as early as possible
Analysis of other "Overhead" expenditure under agreed titles and areas of expense
Total all other expenditure and deduct from Gross Profit
This will provide the trading status (Profit/Loss) of the Company

Balance Sheet

Fixed assets – machinery – equipment – buildings
Stock and other current assets (monies owed by customers/bank balances etc)
Current creditors (suppliers/VAT/Payroll taxes etc)
Manage the accounting and records for bank loans/mortgages etc
Capital injected/raised from business owners or other sources
The Balance Sheet gives the total net worth of the Company/Organisation