Management accounts concentrate on reporting to people inside the business entity and are used to provide information to employees, managers, owner-managers and auditors. Management accounting is concerned primarily with providing current financial information as a basis on which to run your business.
Your management accounts reflect the cumulative calculations you see on your invoice statement during the month. They also incorporate drawings taken from your bank account as well as other adjustments that do not appear in your income statement such as bank transfers. They provide you with information that shows you the financial position of your business at month-end. You can see what funds you have taken out, what funds are available for distribution and the amounts you must set aside to meet your tax liabilities.