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Management Accounts 101 - Using Excel

Some of my most popular bookkeeping and accounting tutorials are those that use excel and spreadsheets to demonstrate accounting techniques and principles. With this in mind The Bookkeeping Master decided to upload a new series to his bookkeeping and accounting YouTube channel; 'Creating Management Accounts using Excel'. The tutorial is a 5 part series and covers creating profit and loss statements, balance sheets and sales ledger reports.

Creating Management Accounts using Excel #1 - An Introduction to Management Accounts

Management accounts are an essential part of evaluating business performance and planning for the future of the business. They generally include information about sales, profits, and debtors (credit clients that owe cash to the business).

Management accounts are generally provided monthly or quarterly and include (at a minimum) a profit and loss statement, sales reports and an aged debtors analysis report.

If you are a bookkeeper, accountant or finance director, providing regular management accounts is a great way to impress your employer or clients.

Now please watch the video below...

Creating Management Accounts using Excel #2 - The Profit and Loss Statement

My next video shows how to create a profit and loss statement using excel.

A profit and loss statement details the profit or loss made by a business or company within a specified period.

Most profit and loss statements cover a period of a month, a quarter or year. The profit or loss is determined by calculating total sales minus the cost of those sales and minus business expenses (overheads).

In the video below, I demonstrate how to create the profit and loss template using Microsoft Excel and also provide an example of what the statement should look like once complete, as well as other important insights...

Creating Management Accounts using Excel #3 - The Balance Sheet

A balance sheet details the assets and liabilities of a business or company.

Some balance sheets specify fixed assets, current assets, long-term liabilities and current liabilities.

The purpose of the balance sheet is to summarise the financial health of a business and provide a 'snapshot' of the financial position of a business.

My video below gives a short tutorial on creating a balance sheet using excel and gives some further insights into balance sheets and the necessity of including them in a set of management accounts...

Creating Management Accounts using Excel #4 - Sales and Aged Debtors Reports

In management accounts, sales reports can be as simple as comparing current sales with historic sales and/or with forecast sales. Usually a graph will suffice. The next video in my Creating Management Accounts Series shows you how to do this.

I strongly encourage you to include an aged debtors report as part of management accounts also. Once again this information can be displayed as a graph, or if you have accounting software, can be displayed by simply printing an aged debtors analysis.

Creating Management Accounts using Excel #5 - Summary

The last video in my management accounts series summarises everything covered in the previous 4 videos.

If you would like me to provide monthly management accounts for your business, please contact me at and visit my accounting practice - SM Accounting.


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