What Management Accounts Contain and When They Must Be Produced

Management accounts are periodic financial reports covering the operating period through to the most recently completed month. A compliant set includes a full income statement, a cash flow summary, a balance sheet, and written variance commentary for each line where the actual result deviates materially from the plan. They are distinct from annual statutory accounts, which are produced for legal and tax purposes. The FFI Standard requires management accounts to be produced within twenty five business days of the period end at Level 1, and within fifteen business days at Level 2.

The production date matters as much as the content. Management accounts delivered thirty or forty days after the period end are not operationally useful and signal to investors that the finance function is not running on a managed cycle. Institutional investors expect board packs to include management accounts current within the reporting period, not the prior quarter.

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Tool: Financial Model Blueprint