A little while ago, we presented a new client with their first set of management accounts.
We talked them through the numbers and highlighted a few areas they should keep an eye on.
When we finished, I asked if anyone had any questions.
Silence.
Everyone around the table nodded.
“All clear,” one of them said.
On the face of it, that’s exactly the response we should want.
Except…
It’s actually one of the situations that worries me most.
Because silence doesn’t always mean people understand the accounts.
Sometimes it means they don’t quite understand what they’re looking at but are too embarrassed to say so.
Or they don’t know what questions to ask in the first place.
And that’s a problem.
In my last blog, I asked a simple question: Do you really understand your numbers?
For many business owners, the honest answer is, “Not always.”
And that’s nothing to be embarrassed about.
Most business owners were never taught how to interpret management accounts, cash flow reports or balance sheets. So why would you automatically understand everything an accountant puts in front of you?
That’s why I don’t think an accountant’s job ends when the reports are sent — or even when they’re presented.
In many ways, that’s where the real work begins.
Producing accurate management accounts is important.
But management accounts, on their own, don’t improve businesses.
Understanding them does.
Every set of accounts should be the beginning of a conversation, not the end of a process.
Of course, we’ll explain what the numbers say.
But, more importantly, we’ll help you understand what they mean for your business.
Why has your gross margin changed?
Why has cash flow improved — or deteriorated?
What could be causing that increase in debtors?
What are the implications if that trend continues?
What options does that give you?
Ultimately, the decisions are yours to make.
Our role is to make sure you understand the information, the options available and the implications of each, so you can make those decisions with confidence.
And there’s another benefit that’s easy to overlook.
Month by month, conversation by conversation, you’ll build your own financial understanding.
You’ll begin to see the bigger picture. You’ll become more confident asking questions, understanding trends and recognising what the numbers are really telling you.
In other words, you’re not just learning about this month’s management accounts.
You’re building the financial confidence to make better business decisions for years to come.
And perhaps the best part is that these conversations aren’t really about finance at all.
They’re about your business – its goals, challenges and opportunities.
So if you’d like an accountant who doesn’t just send you the numbers, but helps you understand what they mean for your business, we’d love to help.
Simply email garry@insightassociates.co.uk or call us on 01279 647 447 to start the conversation.
Yours,
Garry
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