You are in your first Management role in an organisation but you have no idea how to read management accounts? Or maybe you don’t know what they are exactly? Well, you’ve stumbled upon the article just for you: let me tell you all about what management accounts are, how to read them, and why, as a manager, you should take a keen interest in reviewing and understanding them.
As a Finance Manager myself, I have spent a lot of time explaining management accounts to staff who were newly hired or promoted into managerial positions, who never had to engage with management accounts before. Understanding the information presented in them is not only extremely important if you wish to progress in your career (no matter what role you’re after), but it will teach you so much about how the organisation works, and how managers and senior staff make decisions about its future.
In this article, we’ll delve into the world of management accounts, exploring what they are, what they look like, and most importantly, how to read them. By the end, you’ll gain the knowledge necessary to leverage management accounts to make informed decisions and drive positive change within your organization.