31 March 2026 · 6 min read · Bruce Thomas
Statutory accounts are prepared for Companies House and HMRC, to a legal format, usually months after the year has ended. Management accounts are prepared for you, in whatever format is useful, close to the period they cover.
What they usually contain
- Profit and loss for the period with comparatives against last year and budget
- Balance sheet including debtors, creditors and stock
- Gross margin analysis, ideally by contract, product or department
- A rolling cash flow forecast, commonly thirteen weeks
- An updated Corporation Tax provision
- A short written commentary explaining the movements
Why they change decisions
A quarterly margin figure tells you whether a price increase worked, whether material cost inflation has been absorbed, and whether a particular contract is worth repeating. None of that is visible in a set of accounts arriving nine months later.
They also make funding conversations far easier. A business that can produce current figures on request is treated differently by lenders than one that cannot.
Monthly or quarterly?
Quarterly suits stable businesses with predictable trading. Monthly is worth the extra cost where cash is tight, growth is rapid, or covenants must be reported against.
What is needed to produce them
Up-to-date bookkeeping, a sensible chart of accounts and tracking categories that reflect how the business actually operates. Most of the work in a first reporting cycle goes into getting that structure right.
This article is general guidance for business owners in the UK and does not amount to advice for your particular circumstances. Tax rules change and the right answer depends on your figures — please take specific advice before acting.
