Business owners typically have a very intuitive or gut feel for their businesses, and many manage their business successfully in this manner. However, changes in your business such as rapid growth, change in customer base, and/or economic catastrophes such as COVID-19, can all leave a business owner stressed and bewildered about how to ramp up, or recover and move forward. You may be dealing with debt and debt payments you never had before and facing a very uncertain revenue recovery.
Management Accounting is an internal review of the business, events, and present and future needs of the organization, and translating this information into reports to be used to guide the decision making of the organization. Think it’s not important? Consider this; virtually all large businesses have staff and even departments that are full-time and dedicated to this process! Managing cash and projecting financials is critical to small businesses. Formalizing the financial planning process will help you manage your ever-changing business, and allow you to focus on your company, significantly reducing your stress. Georgian Accounting and Tax can help you with this process and it does not have to be painful or expensive.
Below are three main areas of Management Accounting:
Budgets and Forecasts allow you to know where you want to be and measure your business results against those objectives on an ongoing basis.
Systems Process Review
This is a review of all the processes involved in running your business which can include your accounting system/process, as well as operational systems and processes. Sounds complicated? It can be, but it's likely something every small business owner does intuitively to some extent. Georgian Accounting & Tax will work with you directly, finding the areas that need support, and help put new processes in place to make your organization more financially secure.
Cash Flow Projections
Cash management is critical for any business, even more so for small businesses as they often do not have the credit sources or have enough credit to get their business through low cash periods.