Many people don’t understand the difference between Management accounts and Statutory accounts, those that have to be submitted to Companies House in a prescribed, legal format.
Management accounts are designed to help you make decisions to run your business and can be in any format you choose, displaying the information you need.
They are for you as a business owner, not HMRC or Companies House.
Annual accounts produced six months after your year-end will not be much use for making decisions in the here and now.
Have you gone over budget in a particular area? Have profits dropped in the last quarter? Management accounts produced monthly can assist you in finding out this information when it can be used, so you can act fast on a problem, rather than later down the line when it may be too late.