Management accounting and management consulting often go hand in hand. Lets look at how we do it.
First lets understand what these services are and how they can be used to grow your business...
- fINANCIAL ACCOUNTING
- MANAGEMENT ACCOUNTING
WHAT IS FINANCIAL ACCOUNTING
The purpose of financial accounting is to prepare financial reports that provide information about performance to external parties such as investors, creditors, and tax authorities.
Examples of financial accounting includes bookkeeping and the resulting reports - Trial Balance, Income Statement, Balance Sheet and the Annual Financial Statements.
This is the accounting that we all know.
WHAT IS MANAGEMENT ACCOUNTING
Managerial accounting is the process of identifying, measuring, analysing, interpreting and communicating information for the pursuit of an organization's goals. Also known as cost accounting. The main difference is that this information is confidential and is not reported externally.
This is the secret sauce that makes the business unique, that you don't want your competition to know about. This information is reported internally to the business owner and decision makers only.
Examples of management accounting reports are budgets, forecasts, and cost & profit analysis. These are things that would not show up in your Trial Balance, but will be used to make decisions about whether a certain product or service is worth your time and investment.
WHAT DO MANAGEMENT CONSULTANTS DO?
Management consultants help businesses improve their performance and grow by solving problems and finding new and better ways of doing things. Business coaching would fall into this category.
We Provide the Following Consulting Services for Small Business and Entrepreneurs
- Assistance with business proposals and professional profiles
- Writing or improving the business plan with the intention of getting venture capital or bank / investor finance
- Financial projections that can be used in your business plan
- Assistance with applications for finance
- Deep dive into the causes and possible solutions to business problems
- General business strategy advice
Evergreen Accounting has really helped get things in order.
Pete Smith, Director Of Marketing