Dental management accounts
To stay in control, and to be able to plan, you need to know how your practice is performing. But waiting until year-end to find out if your expectations have been met, or if you need to change strategy, means you could miss out on great business-benefitting opportunities.
This is where management accounts come in. As specialist accountants for dentists Figurit offer this service, for peace of mind that you have all the right, up-to-date information at the right time.
Management accounts are regular data reports that give you a clear, current picture of how you’re doing. Typically, for a dental practice, this is a summary report for that month or quarter (depending on how regularly you would like them) that includes:
- Executive summary
- Profit and loss account
- Balance sheet
- Cash-flow statement
The key benefit of management accounts is that they keep you on the right track. They enable you to make data-driven decisions, so you can tweak your business plan accordingly. You might see a clear need to expand the team sooner rather than later, or to invest in other resources, for example. Management accounts will help you maintain a positive, proactive environment.
Stay responsive and intuitive
Management accounts allow you to adapt to market conditions. You might identify the need to spend more in a certain area, to generate income. You could also identify a red flag that will mean future problems if you don’t act now – management accounts are like an early warning system.
Tax planning and compliance
Management accounts mean you won’t get caught out because you’ve not fully understood what you need to pay to HMRC and when. It’s about being informed, aware and ahead of the curve – avoiding late filing and related penalties and knowing your tax liabilities.
If stakeholders or lenders want current financial information, you’ll have it to hand.
Better understanding of your cashflow
You’ll have the means to predict when you’ll have more, or less, cash available because you can compare how your practice has performed in previous months, quarters and years.
Save time and money
With year-round reporting, your accountant won’t need to charge you for all that extra time when preparing your year-end accounts!
Peace of mind – a precious resource
Management accounts will give you the solid data you need to make good, pragmatic decisions that will optimise both the running and performance of your practice. Figurit has been producing management accounts for dental clients for years, via its Xero online accounts solution, making the whole process seamless and efficient.