Management accounts are reports prepared on a regular basis to give users an up to date view of the financial position of a business. These reports have key performance indicators (KPIs) built in. A KPI is a quantifiable measure of things that are important to long-term success. For KPIs to be useful, they must therefore be measurable, have a clear relationship with the goals to which they are related and must give accurate information.
Modern accountancy is a lot more than spewing out figures to please the taxman. Producing accurate, timely management accounts and pertinent KPIs will allow you to make key business decisions. As well as helping management make decisions, management accounts are vital for potential business financing.