Statistics in Business analysis (for small business):
a) Managing accounts: working out monthly internal accounts
Management accounts are made by entering the values that portray your liquidassets, i.e., those that can be easily turned into cash: debtors, stocks/goods, cash in bank or in hand.On the other hand liabilities such as: creditors, loans, taxes. These figures gives amore realistic financial position.
Management accounts are used for planning to help build cash flow forecasts and budgets. All financial figures should therefore be reviewed to check their favorability.Example: you may be owed a huge sum of money by creditors, but what if this islong overdue ±is it a good cash flow position to have now? Is the cash in your bank, yours to spend? Have you allowed for taxes in your cash flow? «. That iswhy you need statistics in business analysis to know where you stand
Complete a management accounts form to work out your financial position byentering simple figures that also make up your
The Balance Sheet
with a high-degree of accuracy.