Fairway sa
Professional Accountants & Tax Practitioners
Fairway sa Professional Accountants & Tax Practitioners
Monthly Management Statements
Monthly Management Statements
We provide our clients with monthly management statements and reports that enable management to make interactive informed business decisions, track progress towards financial goals and identify areas needing immediate attention. This is a useful tool for communicating financial performance to stakeholders such as investors, lenders and board members.
Your Questions Answered
Find answers to common questions about our accounting services and how we can assist you with your financial needs.
Why are monthly management statements so important?
Monthly statements are of importance for:
- Financial Health Tracking: Regularly tracking financial health in your business, provides a clear picture of your financial status, enabling management to make informed decisions and to early detect potential areas for improvement.
- Guiding Decisions: Month-over-month data provides insight to empower timely, strategic decisions. This provides for timely interventions to address problems and issues before they escalate.
- Goal Setting and Achievement: Monthly and periodic overview of your business financial transactions helps to set realistic financial goals and monitor the progress towards achieving them.
- Financial Stability: Regular check-ups on financial health can improve financial stability.
- Resource Allocation: Month-to-month overview of financial data can help management to better allocate available resources. Accurate allocation of resources is crucial for many reasons including optimization of productivity, cost control, team morale, improved project delivery, strategic flexibility, alignment with business goals and mitigating risk.
What does a Monthly Management Statement constist of?
- Statement of Profit and Loss: The P&L or Income Statement: This is a monthly report of revenues, expenses, and net profit or loss. It would be used to analyse how the company has generated revenue and manage expenses within the month.
- Statement of Cash Flows: This statement captures cash inflows and outflows and helps management understand liquidity and cash management month over month.
- Statement of Financial Position: The Statement of Financial Position or Balance Sheet as it is sometimes referred to, reflects the amounts of assets, liabilities, and equity as of the month’s end and represents the financial stability and ability of the Company to meet its obligations.
- KPIs – Key Performance Indicators: It also provides an opportunity to see or determine the gross profit margin, current ratio, and return on equity, enabling managers to capture how efficiently the business has performed during the month in terms of profitability and liquidity.
What are the advantages of monthly management statements?
- Managers: Enables management to make timely business decisions.
- Employees: Shared information helps to align teams with performance goals.
- Investors: Keeping stake holders such as investors and lenders informed, reflects transparency, builds trust and can facilitate better business relationships..
Tailored Financial Solutions
At Fairway SA, we understand that every business is unique, which is why our accounting solutions are meticulously crafted to meet your specific needs and goals, ensuring that you receive personalized, professional assistance that drives your success and fosters growth.
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Kleinzee, Northern Cape, South Africa
Open Monday to Friday from 8h30am to 16h00pm
