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Is your accountant just a bean counter?

Is your accountant just a bean counter?

One of the findings of a survey carried out by the Chartered Institute of Management Accountants last year was that "owner-managers tended to have a 'bean counter' image of accountants". They were "unaware of the potential contribution that management accountants - and in particular accountants - as 'business partners' could make".

Ouch! I sincerely hope that none of our clients were involved in the survey because we are very proud of the fact that management accounting is one of our key strengths. It's a service that many of our clients rely on to help them make decisions about the future direction of their business.

Not sure whether you need management accounting?

If the concept of management accounting is new to you, here’s an extremely brief guide to the difference between this and financial accounting: one looks forward, whilst the other looks back.

Looking forward

Management accounting provides information to people within an organisation. It can be used to create sales forecasting reports, budget analysis and comparative analysis, feasibility studies and merger and consolidation reports for products or cost centres over any period of time, at whatever frequency is required.

Looking back

Financial accounting is mainly for those outside of an organisation. It usually covers the whole organisation and is required by law, conforming to specific standards, formats and timescales. Financial reports are historically factual regarding the profitability, liquidity, solvency and stability of the organisation. They are often used by internal and external users such as shareholders, banks and creditors.

Looking for more?

Whether you need help with your bookkeeping, have an urgent deadline for submitting your statutory accounts or want to see how management accounting could help you and your business, please get in touch.

Call 01628 631056 or email tracya@knightandcompany.co.uk to find out more.