Management accountants have a strategic role. They’re also known as virtual chief financial officers (VCFOs), acting as an outsourced accountant for multiple businesses at one time.
A hybrid of a business coach, financial advisor and colleague, they’ll make sure you’re on the right track and don’t miss opportunities. So, there’s a lot of value to be gained working with a management accountant.
Typically, financial accountants prepare historical reports. These are based on past performance, which doesn’t always help businesses take the next steps.
Management accountants analyse the figures in said reports. They’re future-focused, usually relying on forecasts to show where a business currently stands – and where it’s heading. Therefore, they help businesses make better decisions and promote growth.
Their data-driven approach to decision-making means more often than not you’ll improve the health of your business. Management accountants give you insight into how you’re performing and what you can do to improve.
They’ll probably save you money too.
If you’ve looked into employing a CFO you’ll know it’s a big investment. Small businesses may find a bookkeeper is a more affordable choice.
Because many management accountants are freelance, they’re a middle ground. You’ll only pay for what you use.
Using actual figures they’ll put together a forecast. This predicts the ups and downs you’re set to experience financially throughout the next period.
“Working a 70-hour week means you’ll often put off your finances. When you finally get round to it at 10pm on a Sunday, your brain is fried and the numbers stop making sense. So you could be making decisions based on errors.
As a management accountant, I use Futrli to automate tasks for people, based on solid infrastructure built to not let errors creep in. That’s why Futrli and management accountants are the most solid investments you can make as a business owner.”
– Daniel Killoran, Futrli Management Accountant
Your management accountant will be able to compare your standing against others in your industry using benchmarking. This gives you an idea of how you can progress, and your advisor will help you create a strategy to achieve it.
They’ve likely worked with a business similar to yours. Be it in industry or size, they’ll know which strategies work. A management accountant’s key goal is to add value to your business. Furthermore, they’ll teach you how your company makes its money and how to capitalise on it.