Management Accounts Vs Cashbook Bookkeeping Guide
Businesses often rely on a simple cashbook or bank-based P&L to understand performance. While this is adequate for basic record-keeping, it presents a narrow and often misleading view of profitability and financial health.
Why do they matter, and how do they impact decision-making? - Key Differences:
- Timing
- Accuracy of Profit
- Financial Position
- Cash Flow Mgmt.
- Trend Analysis & KPIs
- Strategic Decision-Making
- Stakeholder Confidence
- Tax & Compliance