While statutory accounts will indicate your current profit – running your business using that base information only isn’t the best idea. Profit in statutory accounts can greatly differ from management accounts – and it is not, in fact, the actual profit figure after corporation tax has been calculated.
What you need is completely accurate and up-to-the-minute data to make good business decisions – and that means taking a look at your accounts at least twice a year or more. Therefore, the official profit figure that’s indicated in statutory accounts does not give a completely upfront p[picture of your current business standing.
Management accounts solely exist to show the true profit figure before tax minimisation adjustments are applied. This way, we can help you understand how your business is truly performing from a profit standpoint – giving you more than ample time to prepare in advance for any foreseeable fluctuations, so that you may adjust your strategy accordingly.