WhyAc

: Hits: 2090

rightgood Do Monthly Management Accounts for Understanding & Control

wrongbomb Don't do Accounts i) just for Tax Filing & ii) without involvement

What is Management Accounting

■ Monthly Reporting; _{not just} to meet tax e-Filing deadline

■ Costs Classified into Variable, Direct / Semi & Overheads for understanding biz

■ Chart of Accounts design that support HR Accountability & Internal Control

■ Balance Sheet focus to show Financial Status / Viability of Enterprise

■ Monthly or/& Yearly Trending Reporting

■ Confidently Understanding your business to face brave Tax Audit

What is Management Accounting in a nut shell?

It entails a rationale Chart of Accounts geared to database data processing that highlight marginal costing to allow for understanding of ROI, Break even analysis and parameter sensitivity analysis.
We push Trending Reports (auto monthly & yearly) of costs & liquidity Balance Sheet items to help management to track is performance trend.

Business Reason

All businesses must do Account to plan & control its operation.
Account ensures HR Accountability to the Objectives set for the Enterprise.(Management by Objectives) read Manage by Objectives
Make use of the Accounting records to manage efficiently if you have not being doing so.
Accounts is for management not a nuisance to be settled by accounts clerk.

Statutory or Legal Reason

All business need to do Tax Filing, so keeping accounts is a must. Pay special attention to Tax issue because you can be easily fined during the Tax Audit read Tax Audit
For limited companies, Accounts must be audited. Auditors need to sign off that proper accounting records are kept and the financial statement reflect a true and fair representation of the state of company.

Most small business thinks that doing Accounts is for Audit & Tax avoidance
(do pay your tax .. don't be like US Trumpet!).

Following should be bosses' practical reasons for doing pro Account.

Know your Cash Flow profile at your finger tips, ^PRO Accounts track this easily.
People don't pay you, you can know who owes you and for how long instantly ... Aging & Set Off.
Your money may be taken by your own people within 家賊难防, fraud & CBT .. Internal Control.
Tax "friends" wants to Tax Audit Track for 7 years .. Do you have your answers easily ready?
Do company meet all Legislative Deadline to avoid fines .. Tax Planning
Do you know what you own and what you owe? .. Assets & Liabilities in your Balance Sheet.
Why you are not making money & how to correct it?.. Productivity, Costs or Productive Activity.
Do you have Accountability Account to be costs effective & not waste? .. Manage by Objectives through Planning & HR Organistion
Do you have a performance record and profile to Talk to a Bank to get Financial Support to even out the ups & downs?