Financial Accounting Reports supports decision making in terms of What happened,
When happened; whereas with Management Accounting Reports you can take your business to next level by predicting what will happen, when will it happen and how to control it.
Profit and Loss vs Management accounts:
By looking at a profit and loss statement you can very quickly see where your business stands in terms of profitability, however by applying some management accounting techniques will help your management team learn how to improve and take a steps at the right time to make improvements, observing what really is making the figures and how to actively control these.
Variance Analysis & Ratio Analysis becomes a part of your business control and decision making with legitimate reasoning.
We at Pandora assess the following elements of a business for our clients:
- Profitability - its ability to earn income and sustain growth in both the short- and long-term. A company's degree of profitability is usually based on the income statement, which reports on the company's results of operations;
- Solvency - its ability to pay its obligation to creditors and other third parties in the long-term;
- Liquidity - its ability to maintain positive cash flow, while satisfying immediate obligations;
- Stability - the firm's ability to remain in business in the long run, without having to sustain significant losses in the conduct of its business. Assessing a company's stability requires the use of both the income statement and the balance sheet, as well as other financial and non-financial indicators. etc.