As a company director, I often hear about statutory and management accounts. What distinguishes these two types of financial statements?
Answer by: abdullah-al-naim
2 days ago
As a company director, I often hear about statutory and management accounts. What distinguishes these two types of financial statements?
Statutory Accounts: Prepared annually to comply with legal obligations, providing a historical overview of the company\’s financial performance and position.
Management Accounts: Produced more frequently (monthly or quarterly) for internal use, aiding in strategic decision-making by offering current insights into financial trends and operational performance.
While statutory accounts are mandatory for external reporting, management accounts are optional but beneficial for effective business management.
For a better clarification, consult with an expert.
