How to recognize the proper management accountingАртем
So, if your management accounting is right:
- You can get Balance sheet and Profit and loss account at the beginning of the month following the reporting one. If you have an ordinary commercial or industrial enterprise without any extraordinary features, you are able to have the statements for the previous month ready within the first 10 days (or even 5 days) of the following one provided your management accounting is proper.
- Your accountant can explain you in simple terms where and in what form your profit is or which actions are to be taken to see the profit with your own eyes. Remember, if the accountant is not able to explain to you where the stated income is, it means either the management accounting is not properly led or your accountant is not qualified enough. Or it can include both reasons.