The benefits of preparing monthly management accounts in general practice
7th September 2015
As part of my role in the Plus Accounting Healthcare team, I prepare monthly management accounts for medical practices. By preparing and analysing management accounts on a monthly basis practices are able to identify trends, measure performance, and keep better control over their many different types of income streams and costs.
Importantly, management accounts allow the practice to monitor profits enabling them to ensure that superannuation contributions are made at the right levels. If partners profits are significantly different to the amounts originally estimated, superannuation contributions can be altered during the year, to make sure the right amount is being paid and there isn’t a shortfall or overpayment at the end of the year.
Management accounts allow for better control over partners’ capital and current accounts. They help to ensure that they are maintained at the correct levels and that profits are distributed in the agreed proportions. This also helps to avoid cash flow shortages, by ensuring that partners do not draw too much.
Management accounts can also be used to keep control over the income claims allowing the practice to act quickly when money hasn’t been received and ensuring that practice claims are not overlooked.
If you would like assistance in the preparation of you monthly management accounts, please contact our Healthcare Team on 01273 701200 or email@example.com and we will be happy to assist you.
Author: Gavin Farley, Healthcare Team
Plus Accounting, Chartered Accountants
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