Budget 2026: what it means for you and your business —

Management Accounts & KPI Reporting

In short

Annual accounts tell you what happened a year ago. Management accounts tell you what is happening now — with commentary that explains what changed and why, not just a pack of figures. We produce them monthly or quarterly, build the KPI dashboard that actually matters for your business, and review it with you so the numbers drive decisions rather than sitting in an inbox.

A management pack that nobody reads is a cost, not a service. The value is not in the production of the numbers — software does that — but in the interpretation: what moved, why it moved, and what you should do about it.

What’s in a set of management accounts?

Profit and loss for the period, with comparatives against budget and prior year. Balance sheet, so you can see debtors, creditors and stock moving. Cash flow, actual and forecast. KPIs specific to your business. Commentary — the part that matters. What changed, why, and what it means.

We also flag what we *expected* to see and didn’t. Variances that nobody can explain are usually where the problems are hiding.

Which KPIs should I actually track?

Very few, and they should be specific to your business model rather than generic.

Gross margin by product, service line or job — most owners are surprised by which lines actually make money. Debtor days — how long your cash sits with customers. Utilisation or productivity, for service businesses. Pipeline conversion, where sales cycles are long. Break-even and runway, always.

A dashboard with twenty metrics gets ignored. One with five gets used.

How often should I get management accounts?

Monthly for businesses that are growing, borrowing, or where cash is tight — anywhere decisions are being made frequently.

Quarterly for stable, established businesses with predictable cash flow.

The test is simple: how often do you make a decision that the numbers should inform? Report at least that often.

A pack of figures with no narrative rarely changes a decision

We include written commentary with every set of management accounts, and we sit down with you to talk through them. If the accounts don’t change what you do, they weren’t worth producing.

On this page

Why LMJ Group

Commentary, not just numbers — what changed, why, and what to do.

KPIs built for your business model, not a generic template.

We meet you to discuss them — the accounts are a conversation, not a PDF.

Tracked against forecast — so the plan stays live rather than dying in a drawer.

Chartered (ICAEW) — a qualified accountant prepares and reviews them.

Related services

Frequently asked questions

What's the difference between management accounts and statutory accounts?

Statutory accounts are a legal filing, produced annually, in a prescribed format, largely for Companies House and HMRC. Management accounts are for you — produced monthly or quarterly, in whatever format helps you run the business, with commentary explaining what's actually happening.

How often should I get management accounts?

Monthly if you're growing, borrowing, or cash is tight; quarterly if you're stable and predictable. The real test is how often you make decisions that the numbers should inform — and you should be reporting at least that often.

Which KPIs matter most for a small business?

Gross margin by product or job (most owners are surprised by which lines actually make money), debtor days, and cash runway are the usual three. Beyond that it depends on your model — utilisation for service firms, pipeline conversion for long sales cycles. Five metrics get used; twenty get ignored.

Do lenders want to see management accounts?

Yes, almost always — and often as a covenant condition. A business that can produce timely, credible management accounts is materially easier to lend to than one that can only show accounts filed nine months after its year end.

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This page provides general information about the 2026/27 UK tax year and is not advice on your particular circumstances. Tax and regulatory rules change frequently. Please contact us before acting, or refraining from acting, on anything set out here. LMJ Group is a firm of Chartered Accountants regulated by the ICAEW. LMJ Group is not a registered auditor and does not provide audit services. Last reviewed: July 2026.