Although statutory accounts are useful to evaluate progress and forecasts, they are mainly for HMRC. You might also need to provide them to company shareholders.
What are management accounts?
It’s not compulsory to produce management account statements, so they’re usually only seen by people within the business. Because they provide useful information about the business, they’re typically useful as a guide when making crucial decisions.
Management accounts give insight into the financial position of the company, concentrating on specific areas.
There’s no specific deadline for producing them, though generally it’s useful to review them regularly for strategic decision making.
What is the difference between statutory and management accounts?
You have to provide these to HMRC
You don’t have to produce these, though they’re very useful.
Useful as an overview of financial activity.
Tend to focus on specific areas of the business.
For external use.
For internal use.
Generally only created annually.
You can produce these as frequently as you need.
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