Management accounts are internal financial reports prepared during the year to help owners and directors understand how the business is performing and make decisions. They are produced for the business itself, not for filing.
How they differ from statutory accounts
Statutory accounts are the formal year-end accounts filed with Companies House and HMRC. Management accounts are usually more frequent (often monthly or quarterly), more detailed and more focused on running the business.
Why they are useful
Up-to-date management accounts give a current view of trading rather than a picture that may be many months old. They help spot trends early.
- Management accounts are internal and frequent.
- Statutory accounts are formal and filed.
- Both help tell the story of the business.
When you apply to Credicorp, recent management accounts can give us a more current view of your limited company or LLP than year-end figures alone.
See also: What is a ledger?, What is a year-end summary document for? and What is a key person in a business?.