Your business clients want to understand their financial position. On a regular basis, you can provide the key numbers they need to make better decisions with detailed management accounts.
To pull together this information you will need your data sources to be well connected. So how do you set up your systems to deliver the reporting that your clients expect? These are the five key elements to consider.
1. Make reporting easier with a cloud platform
A cloud accounting platform will make it easier to prepare management account packs for clients. Client's key numbers can be viewed as real-time data and be quickly pulled into a detailed report, providing the client the most up-to-date view of their finances, and allowing you to offer more proactive and meaningful advice.
2. Automate your bookkeeping processes
To get the raw data that you need to produce accurate management accounts, use software automation and optical character recognition (OCR) technology to help you get clients’ data into your systems.
Data-management solutions and cloud bookkeeping apps allows the firm to automate clients’ bookkeeping, expenses and document scanning processes. Integrate an automated bookkeeping solution, such as Receipt Bank to get the client’s data into your system fast.
3. Organise clients’ accounts codes and cost centres
To tailor your clients’ Chart of Accounts, you will need to understand their business model and ask them about their key metrics. You’ll then need to reflect these numbers and key drivers on the Chart of Accounts using separate accounting codes.
By recording and tracking key numbers within your practice accounting system, you can deliver management accounts that dive down into detail.
4. Create dashboard reporting that adds real insight
Agree to have a regular meeting with your clients to explain what the numbers of the report mean, review their KPIs, analyse the numbers and offer them advice. By having these conversations, you will be able to upsell value-add services and have a closer working relationship with your clients. So it’s vital to put high-quality reporting at the centre of your advisory offering.