Management Accounting

Management accounting is crucial for decision-making processes, as Management Accounts are reports that give an up-to-date view of a company’s finances, enabling the management to make informed and effective business decisions based on performance. These management accounting reports need to be quite crisp and clear, with a focus on the business and customised as per specific operation and scale.

The management of a company review performance reports noting variance between the actual result from budgets. The primary function of management accounting includes:

• Forecasting the future.
• Make-or-buy decisions.
• Forecasting cash flow.
• Analyzing ROR and understanding performance variance.

We help our clients by identifying and bringing to their notice opportunities and risks, which adds immense value to our services. Our services are completely flexible in terms of the scope of work undertaken and the type of reports and management information you need. As the management information required by each business differs, we do not give a standard strategy to all of our clients. We make every effort to comprehend the unique business requirements and key performance metrics that are relevant to the client’s industry and organization. We offer tailored management accounting services enabling you to have an updated perspective on your business health and helping the decision makers in making informed business decisions.

We turn your accounting data into intelligent insights and proactively deliver frequent reports (monthly, quarterly, half-yearly, annual, or as requested by clients), allowing you to better manage your business and make informed choices. We also pledge to complete the agreed-upon reports within a strict time limit from the period end – this time frame is fully dependent on your requirements. We can help you with all aspects of management reporting, including the preparation of a management reporting package (including GAAP adjustments, depending on the reporting standard), the development of an appropriate reporting package, and assistance during budgeting and planning.

With expertise in almost all prominently used accounting software and platform, our team of experienced accountants offer fast learning curves and smooth collaboration with you. We also look into the challenges of existing structures and working practices and suggest improvements in the identified areas.

Scope of Work

• Sales and purchase ledger management
• Profit and loss accounts
• Monthly/quarterly/annual management accounting reports
• Ratio analysis
• Cash flow forecasting
• Preparation of budgets
• Management commentary
• Multi-currency reporting
• Budgetary forecasts

What We Will Need

• Sales and Purchase Invoices
• Banks & Credit Card Statements
• Discussions with management to prepare the budget

What We Will Provide

• Comprehensive Profit and Loss Statement
• Balance Sheet
• Cash Flow Statements
• Statement of Changes in Equity
• Profit and loss or cost center reporting
• KPI performance dashboard
• Complete backup notes for important balances
• Schedules for evaluating vital balances
• Budgeting and variances reporting
• Commentaries that explain various reports including:
• Financial Statements
• Budget
• Bespoke management reports

Unparalleled benefits of working with us

Let’s look at a few benefits of working with us.

Over 70% cost savings : Cost savings is known to be one of the most prominent benefits of working with us. In fact, many businesses have looked at offshore accounting services as a mere cost-saving tool for several years. Although there is more to offshoring accounting services than just the monetary benefit, cost savings remains the primary reason practices outsource accounting services. Hiring onshore resources and building an in-house team of accountants is a costly affair. The salaries and recruitment costs of accountants in developed countries like the UK, US, etc. are rather high and are expected to grow further in years to come. We enable businesses to save over 70% accounting costs.

Eliminate staffing/HR issues : The staffing shortages in the accounting industry have been growing phenomenally over the last few years. For example, with the onset of the Great Resignation, staffing has become a significant concern for accountancy practices in the UK. You need not to worry about recruiting, training, employee absences, attrition, etc. as our team will always be available to handle your tasks efficiently. We help you free up your in-house staff to take up higher-value tasks and focus on more important services that ensure your firm a steady revenue stream and help strengthen your reputation in the market. Our resources are trained extensively on UK accounting and can seamlessly adapt to diverse work cultures. They work as an extension of your team and make your processes smooth and hassle-free.

Higher productivity : We train our resources to extensively excel at their jobs. These experts can efficiently handle complex and cumbersome tasks and make your processes hassle-free. Moreover, our accounting professionals are well-versed with the latest accounting software and use technology to improve consistency and accuracy in critical accounting tasks.

Latest technology : Our team is extensively trained in multiple cloud-based accounting software. These resources have the expertise to automate your processes and thus minimise the scope of errors.

Scalability : We help you in scaling up your accounting capabilities quickly despite many challenges. You can increase the number of resources required to work for you in the least possible time.

To learn more about our services, please book a call or drop us an email at hello@valorega.com.

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Glossary

Profit and Loss Statement : A profit and loss Statement (P&L) is a report that shows a company’s total income and expenses in a specific period. It's a useful report as it shows a company’s net profit (or loss) based on its income and expenses, and that can be used to come up with some cost-cutting strategies.

Balance Sheet : A balance sheet (also referred to as the Statement of Financial Position) is one of the important financial statements used by accountants and business owners to understand a company's financial position at a point in time. It is a financial statement that reports a company's assets, liabilities, and shareholder equity. It provides a snapshot of a company's finances (what it owns and owes) at the end of a specified date. The balance sheet is one of the three core financial statements that are used to evaluate a business.

Cash Flow Statement : A cash flow statement (‘CFS’), is a financial statement that summarizes the movement of cash and cash equivalents (‘CCE’) that come in and go out of a company. The CFS measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses. The main components of the cash flow statement are:

• Cash flow from operating activities
• Cash flow from investing activities
• Cash flow from financing activities

Statement of Changes in Equity: A statement of change in equity (also referred to as the statement of retained earnings) is a company's financial statement that measures the changes in owners’ equity throughout a specific accounting period. It covers the following elements:

• Net profit or loss
• Dividend payments
• Equity withdrawals
• Effect of accounting policies changes
• Effects of prior accounting period corrections
• Accumulated reserves and retained earnings

Ledger Management : Ledger management oversees the recording and reporting of the bookkeeping (journal) entries that show all the business’s transactions (cash, accounts receivable, investments, inventory, accounts payable, accrued expenses and customer deposits). The master set of accounts that summarize all transactions is called the general ledger for which there may be a set of subsidiary ledgers. The general ledger concepts refer to double-entry accounting which means basic accounting equations and journals. The general ledger evaluates financial transactions such as profitability, liquidity, cash flow statement, income statement, trial balance and balance sheet. It also provides accurate financial record, makes tax return filing easy, and spot unusual accounting.

Budgeting : A budget is an estimation of revenue and expenses over a specified future period (usually for a quarter or financial year) and is generally compiled and re-evaluated periodically. Budgeting is the process of designing, implementing and operating budgets. It is the managerial process of budget planning and preparation, budgetary control and the related procedures. Budgeting is the highest level of accounting in terms of the future which indicates a definite course of action and not merely reporting. It is an integral part of such managerial policies as long-range planning, cash flow, capital expenditure and project management. It helps in looking at a business’ estimated income (the money that comes into the business from selling products and services) and expenditures (the money that goes out from paying expenses and bills) over a specific period in the future. It allows a business to see if it will be able to continue operating at its expected level with these projected incomes and expenditures. It also helps a business in understanding how well they are expecting to perform within a period and actual performance can be monitored against this original proposed plan.

Cash Flow Planning : Cash flow planning ensures there is enough cash in the bank for the business to pay its bills, but the prediction of cash flow can help a business if it’s considering expansion, investment in new products, moving to larger premises, or recruiting staff. Cash flow planning can help in evaluating how a business can cut down on overheads, identify new investments, or generate more sales.