Hi Ben,

The difference is that management accounts are prepared on the basis of the truth that the directors want to hear rather than the truth that the directors want the shareholders to hear.

They should include the figures for that month, the year to date, and (possibly) projections with comparrison to budget, any variances from adjusted budget, key ratio's, benchmarking against budget / plans (including non financial targets) and basically anything else that management want.

The information for management reports is not always readily available from accounts software which in my experience is geared towards yearend reporting rather than management reports. (For which Excel is by far the best tool out there).

Management like to see pretty coloured graphs so pie charts and column style graphs are beteer than lots of x's and o's on join the dots type graphs.

The report should include simplified versions of the current cashflow and aged debtor reports.

Whilst much information from the SOFP and SOCI is applicable you don't have to follow the prescribed format of either for management reports which are not controlled in law or regulation.

All in all think of it that management want to know that they are hitting their targets and if not, why not.

I remember several years ago being given a very good piece of advice from one of the banks accountants about producing monthly reports. To quote "make it so simple that even management can understand it".

That's definitely one that's stuck with me.

My advice in addition to the above would be to produce it so that you could easily stand up in front of the board and explain it to them using nothing but the report that you have produced. If there is anything in there too complex for you to explain then it shouldn't be in there in the format that it currently is.

Hope that helps to get you started,

kind regards,

Shaun.