The provision of regular and detailed information helps businesses to know how profitable they are, where the profit is derived and how it can be maximised. It also helps identify why specific problems have arisen and how they can be solved.
CIMA qualified accountants analyse information and use it to make business decisions.
LMN Ltd was a financial services company which had grown organically over 10 years and had 9 staff members. Whilst the business was very well run from a customer point of view the directors struggled with the financial aspects of the business. In particular, they felt the business was stagnating and did not know why.
They engaged a management accountant who helped them to understand their business by providing information that was relevant, timely and in a format they could understand.
Together they identified that:
The directors are now much happier that they understand the financial aspects of their business and the business is moving forward in the direction they want.
It is vital that you understand your business finances, and what drives your businesss financial success. The financial statements your accountant produces for you are a key to unlocking the mysteries surrounding money in your business
Provided by Fiona Bevan →