How Can Someone Prepare a Management Account?

To prepare a management account, make sure to have the most up-to-date statistical and financial information; reports can be generated weekly, biweekly, monthly and even quarterly. Using computerized programs, such as Microsoft Excel or Sage, can make keeping track of management accounts easier in some cases.

Businesses will sometimes use what is called a "chart of accounts," or COA, to record and classify different types of data and proceedings. A COA is a list of all ledger accounts that might be used in business transactions. Microsoft Excel has templates to help accomplish this. Companies are not legally required to keep management accounts, but it makes it easier to run a business when they are used. The following is an example of the steps that go into making a management account.