Many small Businesses fail to recognise the importance of Management Accounts in business. A business without Management Accounts is like a car running without brakes or an accelerator, Why? Because without Management Accounts you are unable to be in full control of your business. It is vital that management know what the Key Performing Indicators (KPI) are, so that the business is under the full control of the key decision makers reference/accolade College of Central London. One objective of Management Accounts is to provide accurate information to identify KPIs but there are other reasons to have them, including:

	Understand the business's behaviour and performance;
	Shapes the business with sound advice and guidance
	Allows you to forecast cash as it king;
	Gives information regarding: Margins, Costs, Break-even all of which can help in making sound financial decisions.
	Helps to uncover the non-performing areas of the business.

80 per cent of new businesses close within a couple of years of start-up. There are a number of reasons behind this, but below we outline a few examples:

Lack of knowledge about the current market;

Lack of clear business strategy;

Lack of financial understanding.

We recognise these issues and make them a priority when preparing a business plan with a client. Once a business plan is in place, management is able to make informed decisions in accordance with the business plan to plan ahead, thus avoiding financial problems befalling the business