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Management Accounting Course

This page contains our free online course for learning management accounts. It will teach you the basics of management accounting, including templates, practical examples, and a step-by-step guide to creating a set of management accounts.

The Course Covers:

  • The Fundamentals of Management Accounts

  • Compiling Management Accounts

  • Using Management Accounts

  • Financial Statement Basics 


Course Modules:

Management Accounting Made Easy

Management Accounts Course

Part 1: An Introduction to Management Accounts

Module overview:

  • Course Introduction 

  • What is management accounting?

  • Who compiles management accounts?

  • And more

What are management accounts?

Management accounts are a set of financial reports compiled for company directors, business owners, and shareholders. They contain crucial business information related to sales, cash flow, and profitability. 

Management accounts usually consist of a profit and loss and a balance sheet at a minimum. They are generally compiled every month or quarter. 

Who compiles management accounts?

Management accounts are usually compiled internally by the finance team or company accountant. An outsourced bookkeeper or accountant is used, if the business is small. 

Why are management accounts important?

A set of management accounts helps directors, owners, and shareholders evaluate a business's performance. The accounts highlight possible financial weaknesses and strengths. They are a fantastic way to analyse growth and track financial goals. 

Management accounts vs financial accounts?

Financial accounts are compiled by a tax accountant at year-end. They consist of a profit and loss statement and a balance sheet for a business, company, or other entity's financial year. 

Management accounts are compiled internally on a monthly or quarterly basis. They consist of various reports decided by those who review them. 

Part 2: Preparing Management Accounts

Module overview:

  • Preparing management accounts

  • Management accounts checklist

  • Accounting software 

  • Excel

  • And more

Preparing Management Accounts

How do you prepare management accounts?

The following tasks must be completed to ensure a set of management accounts is accurate: 

  • Bookkeeping. All data entry must be completed for the period, including recording all sales invoices, purchase invoices, customer payments, supplier payments, and bank transactions. A double-entry bookkeeping system will make compiling a set of management accounts easier and more accurate. 

  • Wages journals. Wages should have been run for the period, and wages journals must be posted to the financial accounts. 

  • Reconciliations. All accounts must be reconciled, including customer and supplier accounts, as well as bank, credit card, loan, and tax accounts, for the period. 

  • Filing of tax reports. All tax returns, such as VAT (sales tax) reports and payroll reports, should be filed. 

Using accounting software vs Excel

Using accounting software such as Sage, Xero, or QuickBooks Online, you can more quickly complete the above tasks and create management accounts. 

Management accounts can be manually created using Microsoft Excel or similar software, although using Excel is time-consuming, and there is room for error. In this series, I will show you how to create management accounts using Excel. This is to help you understand how to compile management accounts from scratch, rather than suggest that Excel should be used. 

Which financial reports should be included in management accounts?

At a minimum, a set of management accounts should include a profit and loss statement and a balance sheet for the period. However, management accounts can consist of the following:

  • Profit and loss statement

  • Balance sheet

  • Aged debtors

  • Aged creditors

  • Cash flow forecast

  • Sales and profit graphs

  • Notes and analysis

This course will cover each of the above financial reports in detail. 

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