What Are Management Accounts, Really? (And Why Do Clients Not Understand Them?)

Jen
Apr 17
2 min read

Let’s be honest - “management accounts” sounds a bit... dry, doesn’t it?

To us as accountants and bookkeepers, they’re a core part of helping businesses grow. But to our clients? It’s often just another confusing term in a sea of jargon they’d rather avoid.

What are management accounts?

In plain English: management accounts are a regular summary of what’s going on in a business financially. Usually monthly or quarterly, they show things like:

Profit and loss
Cash flow
Business performance trends
Key costs and income streams
Budget vs actual comparisons
Anything else useful for decision-making

They’re not for HMRC. They’re not for filing. They’re for the business owner - to help them make better, more informed decisions.

But why don’t clients understand them?

Because no one’s explained the value in their language.

To us, “monthly P&L and variance analysis” makes perfect sense. To them, it sounds like more paperwork they don’t have time for.

Most small business owners I speak to are in survival mode. They’re spinning all the plates - sales, delivery, staff, admin, family life… the idea of spending time reviewing numbers? It’s at the bottom of their list (if it’s even on there at all).

Plus, if they’ve had a bookkeeper or accountant in the past who didn’t explain the numbers - just emailed over reports and left them to it - then they’ve learned to tune it all out.

What clients really want is insight

They don’t just want reports. They want answers.

Can I afford to hire someone?
Should I increase my prices?
Why does it feel like there’s never any money left over?
Am I charging enough to make a profit?
What’s eating into my margins?

That’s where management accounts come in. But only if we deliver them in a way that connects.

So how do we make clients actually care?

Here’s what I’ve found works:

1. Use plain language Swap “gross profit margin analysis” for “how much you’re really making on each sale.”

2. Focus on decisions Show how the figures lead to smarter choices - not just nice-looking charts.

3. Visuals help Graphs, summaries, highlights - these can make a huge difference, especially for visual learners.

4. Don’t overwhelm Start small. Pick one thing to talk about each month - e.g., “Your overheads are creeping up – here’s why and what we can do.”

5. Talk like a human Your clients don’t need a data dump - they need a friendly voice explaining what’s going on in their business.

Final thought

Management accounts aren’t “extra.” They’re essential for any business that wants to actually grow.

And once clients see the value - once they understand how helpful these insights can be - they start asking for them. That’s when you know you’ve cracked it.

Want help getting clients on board with management accounts? I’ve got mini courses, email templates, and content ideas that show you how - all created with you in mind.

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