2 min read
What management accounts contain
Management accounts are internal financial reports — usually a profit and loss, a balance sheet and often a cash-flow summary — produced monthly or quarterly. They are not filed anywhere; their job is to tell you how the business is doing now, not last year.
How they differ from statutory accounts
Statutory accounts are the formal, once-a-year figures filed at Companies House. By the time they are filed they can be over a year old. Management accounts fill that gap with current data, which is why a lender assessing a recent trading trend will ask for them.
Why lenders ask for them
A lender making a decision this month wants to see this year's performance, not last year's. Recent management accounts show whether revenue and margins are holding, which strengthens an affordability case built on current cash flow. Clean, timely management accounts can be the difference between a yes and a maybe.
Producing them without pain
Modern accounting software generates management accounts almost automatically if your bookkeeping is current. The discipline is keeping records up to date — reconciling the bank, coding transactions, chasing invoices — so the report is a click away when you or a lender needs it. See how to prepare management accounts.
Use them to run the business
Beyond borrowing, management accounts are your steering wheel: they surface problems while there is still time to fix them.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
Frequently asked questions
Are management accounts a legal requirement?
No. Unlike statutory accounts, they are internal and not filed anywhere. But they are hugely useful for running the business and are frequently requested by lenders.
How often should I produce management accounts?
Monthly is ideal for an active trading business; quarterly is a workable minimum. The more current they are, the more useful they are for decisions and for supporting a finance application.
Do I need an accountant to produce them?
Not necessarily. Accounting software can generate them if your bookkeeping is up to date, though many directors have their accountant review or prepare them for accuracy and credibility with lenders.
Related reading
How to read your company's profit and loss account
Your profit and loss account tells you whether the business made money over a period — but not whether it has…
Read →How to read your company's balance sheet
Your balance sheet is a snapshot of what your company owns, owes and is worth on a single day. Learn to read…
Read →
How to prepare management accounts for lenders
Up-to-date management accounts are often the difference between a fast yes and a slow maybe. This how-to…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.