We would normally recommend that small & medium sized businesses prepare management accounts on a quarterly basis. This allows for regular & assessment of the performance of the business. By having management accounts completed the business owner can verify that the business is moving in the right direction. If the management accounts reveal a deviation from the financial plan or budget, then action can be taken to address the issue.

Business plans will include a financial plan for the business for the first number of years of operation. Usually, there is heavy revision required for the financial plan after the first year of operation. In addition, each year should see the setting of business goals and objectives. These business objectives should be translated into a financial plan or budget. The budget is then used as a business measurement tool during the year.

Frequently, the most successful businesses are driven by innovative individuals whose primary backgrounds are non-financial. Their talents can be diverted from these areas through the complexities of maintaining the cashflow and administrative issues. Backup support can alleviate these worries and allow the business to develop and prosper.