Running a business:
Financial information

If your records are accurate and reliable they can help you manage your business. Management accounts are particularly useful for highlighting the strengths and weaknesses of your business, and identifying areas that need attention. You will be able to see, for example, whether you have a potential problem with slow paying debtors or if your costs are higher than expected, and act on the information. Early intervention often nips a potential problem in the bud.

You are also required to prepare accounts which are required for legal and tax purposes, and these are often referred to as financial statements.