What good looks like
Management accounts: what good looks like
Management accounts are figures you get during the year, so you can see how the business is doing while there is still time to act.
The short answer
There is no legal requirement to have management accounts and no official standard for them. Useful ones usually arrive each month or quarter, soon after the period ends, and show profit, cash and what the business owns and owes, compared with last year or a budget. If you have none, or they arrive months late, ask your accountant whether they can provide them.
Why they matter
Annual accounts tell you how the business did months after the year ended. The ICAEW says "annual accounts are not enough to control a business" and that you need to know what is happening to profits and losses "on a much more regular basis".1 Management accounts fill that gap.
What they commonly contain
| Part | What it shows |
|---|---|
| Profit and loss | Sales, costs and profit for the month and the year so far |
| Balance sheet | What the business owns and owes at the end of the month |
| Cash | Cash in and out, and the bank balance |
| Comparison | The same figures against last year, or against a budget |
| Short note | What changed and why, in plain words |
Larger businesses often add a few key measures, such as how long customers take to pay. This table is our summary of the parts commonly included, for our reviewer to check. It is not an official list.
How often, and how soon
Many businesses that want regular figures get them monthly. Smaller or steadier businesses may find quarterly enough. They are most useful when they arrive soon after the period ends. We have not found an official standard for how soon. Lenders set their own rules. For example, Allica Bank asks for 12 months of management accounts less than 60 days old for business loans up to £75,000.2
Signs yours may not be giving you what you need
- You do not get any figures between your annual accounts.
- They arrive so late that the month is long forgotten.
- You get pages of numbers with no note on what changed.
- They do not show cash, so a profitable month can still leave you short.
What to ask your accountant
- Can you send me management accounts each month? By which working day?
- Will they include a comparison with last year or a budget?
- Can you add a short note on what changed?
- What would this cost?
If they cannot help, a management accountant or a part-time finance director can. See Management accountant.
About this standard
Our standards describe what businesses of a given size often have. They are drafted from published guidance and lenders' requirements, and a paid practising accountant will review each one before release. They are not rules your accountant must follow. How our standards work.
Sources
- ICAEW, "Managing your business" (Find a Chartered Accountant, help with your business). icaew.com. Checked 12 October 2026.
- Allica Bank, "Business loans" (lender requirements). allica.bank/business-loans. Checked 12 October 2026. One lender's rule, given as an example.