What is the difference between statutory accounts and management accounts?

Statutory accounts are mandatory historical reports prepared under strict accounting standards (such as FRS 102 or FRS 105) for public filing at Companies House and submission to HMRC. Management accounts are internal, tailored operational reports prepared monthly or quarterly to give directors timely insights into financial performance, margins, and cash flow for decision-making.

Can management accounts help with legal dividend planning?

Yes. Under the Companies Act 2006, dividends may only be paid out of accumulated realised distributable profits. Management accounts can inform a separate check that a proposed dividend is covered, made against the relevant accounts, realised profits, earlier distributions and reserves. They do not by themselves authorise a dividend.

Do management accounts need to be submitted to Companies House or HMRC?

No. Management accounts are private internal management reports and are not filed with Companies House or HMRC. They are strictly for company directors, internal managers, board members, and external lenders or investors who request them.

Periodic Management Accounts and Financial Reporting

Gain crystal-clear visibility into your company commercial performance and cash flow before year-end. Our periodic management accounts provide structured Profit and Loss statements, Balance Sheets, variance analysis, and practical executive commentary so directors and stakeholders can make data-driven business decisions with confidence.

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Who it's for

Growing UK limited companies, business owners seeking investment or commercial lending, and directors who need regular financial oversight rather than relying solely on annual retrospective tax accounts.

What you provide

Fully reconciled bookkeeping records for the period, sales and inventory data where applicable, copies of key commercial contracts or loan agreements, and your operational budget projections.

How it works

At the end of each designated monthly or quarterly period, our accountants apply necessary accounting adjustments including accruals, prepayments, depreciation, and bad debt provisions. We generate your management reporting pack, conduct variance analysis against previous periods or budgets, and prepare written commentary highlighting the key trends.

Price

From £150 a quarter. Our management accounts fee is determined by reporting frequency (quarterly versus monthly reporting packs), the depth and customization of departmental analysis or cost centres, whether consolidated reporting across multiple entities is required, and the underlying cleanliness of your bookkeeping records.

What is included

Preparation of comprehensive periodic Profit and Loss (P&L) statements with gross margin analysis
Detailed Balance Sheet showing current assets, liabilities and net assets
Accruals, prepayments, fixed asset depreciation, and period-end ledger adjustments
Cash flow movement analysis and working capital monitoring
Comparison and variance analysis against previous quarters, years, or established budgets
Executive summary and written commentary explaining commercial trends in plain language
Key performance indicator (KPI) tracking tailored to your specific business model

What is not included

Routine day-to-day transaction processing and receipt entry (covered under ongoing bookkeeping)
Statutory annual accounts filing with Companies House (available as a separate service)
Statutory Corporation Tax return (CT600) filing with HMRC (available as a separate service)
Formal independent statutory financial audit or formal assurance engagements
Complex corporate finance fundraising advisory or underwriting guarantees

Why Periodic Management Accounts Matter for Directors

Under Section 172 of the Companies Act 2006, company directors have a statutory duty to act in good faith and promote the success of the company. Relying solely on year-end statutory accounts means reviewing financial data many months after transactions occurred, when it is too late to fix cash burn, unprofitable product lines, or tax exposure. Regular management reporting gives you a forward-looking view, helping you understand real profitability, dividend capacity, and tax liabilities well before statutory deadlines.

Investor and Commercial Lender Readiness

Banks, investment funds and angel investors often ask for up-to-date management accounts before providing loans or equity funding. Reconciled management accounts prepared by accountants can support that due diligence.

Frequently asked questions

What is the difference between statutory accounts and management accounts?: Statutory accounts are mandatory historical reports prepared under strict accounting standards (such as FRS 102 or FRS 105) for public filing at Companies House and submission to HMRC. Management accounts are internal, tailored operational reports prepared monthly or quarterly to give directors timely insights into financial performance, margins, and cash flow for decision-making.
Can management accounts help with legal dividend planning?: Yes. Under the Companies Act 2006, dividends may only be paid out of accumulated realised distributable profits. Management accounts can inform a separate check that a proposed dividend is covered, made against the relevant accounts, realised profits, earlier distributions and reserves. They do not by themselves authorise a dividend.
Do management accounts need to be submitted to Companies House or HMRC?: No. Management accounts are private internal management reports and are not filed with Companies House or HMRC. They are strictly for company directors, internal managers, board members, and external lenders or investors who request them.

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Content reviewed by Ibrahem Ali Almahawe MAAT AATQB (AAT licence 1009686) (2026-10-01).