United Kingdom
Monthly management accounts for UK businesses
UK management accounts are a monthly pack: the profit and loss for the month and the year to date, a balance sheet, cash, debtors and creditors, a few KPIs and a page of commentary. They aren't filed with Companies House or HMRC; they exist so directors can run the business between the year-end accounts.
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Every figure shown here is invented for illustration. Nothing on this page is computed from anyone’s accounts.
What a UK month-end pack usually contains
| Page | What it shows | What directors look for |
|---|---|---|
| Headline numbers | Revenue, gross margin, net profit, cash | Is this month normal? |
| Profit and loss | Month, year to date, same month last year, budget if there is one | Which lines moved, and by how much |
| Balance sheet | Fixed assets, debtors, creditors, VAT, corporation tax, loans, reserves | Is cash tied up anywhere? |
| Cash | Bank balances and the month's movement | Can we pay what is due? |
| Debtors and creditors | Debtor days, creditor days, the oldest balances | Who pays late; are we paying on time |
| KPIs | Gross margin, overheads as a share of revenue, runway | The trend over three to six months |
| Commentary | What moved, why, and what deserves attention | One page they will actually read |
A new nominal code is the classic way a figure goes missing
A code added in the month, for a new subscription, a grant or a director's loan, is how a spreadsheet pack silently drops a figure. In Magic MIS each nominal code is placed once on a line of the report and remembered; next month only new codes need placing, and the ledger map shows where every code sits.
VAT sits on the balance sheet, not in the profit and loss
Revenue and costs are net of VAT; debtors and creditors include it. Compare net-of-VAT debtors with net revenue when you work out debtor days, or a VAT-registered business looks slower to collect than it is. The VAT owed builds over the quarter and drops when the return is paid, so a dip in cash in the month after a VAT quarter end is expected, and worth one line in the commentary.
Many small company packs show profit before tax only. If the directors want a monthly accrual for corporation tax, agree the rate and method with the company's accountant; Magic MIS doesn't give tax advice. The workbook can add a balance sheet and profit and loss in Companies Act formats, for management use rather than filing.
A design studio's May: 81.7% gross margin on £669,194 of fees
An invented studio's May trial balance shows fee income of £669,194, direct costs of £122,173 and overheads of £298,174.
- Gross margin = (669,194 − 122,173) ÷ 669,194 = 81.7%
- EBITDA = 669,194 − 122,173 − 298,174 = £248,847
Revenue was £669,194 in May, up £10,505 (1.6%) on April but down 25.6% on May last year.
In Magic MIS the AI writes sentences like that one, and the engine fills every figure, each opening to the nominal codes behind it. The reason behind a fall, such as a client not renewing, is yours to add.
Any UK bookkeeping export works
Xero, QuickBooks, Sage 50, FreeAgent and any other package that exports a trial balance to Excel, CSV or PDF. There is no live connection; you upload the export each month. Guides: Xero, Sage 50, QuickBooks, FreeAgent.
You get a checked Excel workbook with live formulas that you own, a board you change by asking ("add creditor days to the board"), the month written up, Where to act (suggestions to consider, not tax, legal or audit advice) and a read-only link you can send a director. Prepaid credits, no subscription, and every action shows its price before it runs: see the credit packs. It works in a desktop browser.
What UK directors and bookkeepers ask
Are management accounts a legal requirement in the UK?
No. Companies must keep adequate accounting records and file statutory accounts, but monthly management accounts are for the directors' own use. Lenders and investors often ask for them.
How soon after the month end should they be ready?
Many UK businesses aim for within ten working days, once bank reconciliations and accruals are done.
Do management accounts show VAT?
The profit and loss is net of VAT. What is owed or reclaimable appears on the balance sheet.
Can Magic MIS connect to Xero or Sage?
No. It works from the trial balance you export; there is no live connection.
Who can open my client's file?
No person on our side. Each file is encrypted under a key belonging to that company alone, and every opening is recorded where you can see it.
Read next
- Management accounts: what they contain and how to prepare them monthlyWhat monthly management accounts should include — P&L, balance sheet, cash flow, ratios and commentary — how long they take to prepare by hand, and how to stop rebuilding them every month.Read
- Management accounts commentary examples: weak and strong, line by lineEight weak lines of management accounts commentary rewritten to name the cause, the six causes behind most variances, and a whole month's commentary put together.Read
- Month-end close checklist before the management reportThe checks to finish before a month's figures go into an MIS or management accounts: bank reconciliation, cut-off, accruals, depreciation, control accounts and suspense.Read
Turn this month's trial balance into management accounts
Create an account, load last month's trial balance, and get the report — paid per action.
Prepaid credits, no subscription.