Over nearly two decades in the profession, I’ve worked in practice and industry, run departments, managed offices, and led entire firms. I’ve also spent time in public life, where I’ve scrutinised council budgets, health services, and other public sector bodies. That experience gives me a clear view on what separates meaningful financial reporting from noise.
Here’s the truth: most management accounts are either too shallow or too overwhelming – and often focus on the wrong things entirely.
If the reports you’re getting aren’t helping you make better decision, then they’re not doing their job.
Two big problems:
1. Too General
A generic P&L with some commentary and the odd graph might look tidy, but it doesn’t tell you much. These reports often:
- Don’t separate out different income streams or departments
- Don’t show actual cash movement
- Ignore capital spending and asset use
- Use KPIs that look good on paper but aren’t tied to your goals
They’re built for reporting, not for decision-making.
2. Too Detailed
At the other end of the scale, some reports include:
- Every ratio under the sun
- 40-page PDFs with tabs and tabs of spreadsheet data
- No clear narrative or headline findings
You might have every number, but you lose the point. The important decisions get lost in a sea of metrics.
Focus on the Right Figures
The best management accounts are focused. They help you answer questions like:
- Can I afford to take on a new member of staff?
- Where is my profit actually coming from?
- What’s eating into my margins?
- Can I pay my tax bill without borrowing?
So what numbers should be front and centre?
- Cashflow: Are you actually generating cash, or just showing paper profits?
- Capital spend vs depreciation: Are you burning cash on new assets, or running down old ones? Many reports show depreciation but not what you’ve spent.
- Working capital movements: What’s happening with stock, debtors, and creditors?
- Net profit after tax: Not just operating profit or EBITDA, but what’s left once everything’s accounted for.
- Tax and interest: These are real, regular cash outflows. If they’re missing from your reports, you’re only seeing half the picture.
The EBITDA Illusion
EBITDA is useful in the right context. If you’re preparing your business for sale, seeking investment, or comparing profitability across companies, EBITDA has its place.
But for day-to-day decision-making? It’s not enough.
EBITDA strips out:
- Interest – but you still must pay it
- Tax – but it hits your cash account just the same
- Depreciation & amortisation – which are non-cash, but the cost of buying those assets isn’t
So, while EBITDA gives a neat, standardised view of performance, it doesn’t help you manage cash, plan for asset replacement, or track your real net position. In fact, in some sets of management accounts it is appropriate to include a tax estimate under the net profit line, to focus the user’s mind.
In short, don’t let EBITDA distract you from the actual cost of running your business.
Reports Should Be Structured Around Your Decisions
Before you even get to the numbers, your accountant should understand:
- What you need to decide weekly, monthly, and quarterly
- What metrics really matter to your business
- Where your risks and pinch points are
- What decisions you’re trying to make next
Only then can the reporting be shaped to support you.
Your reporting pack should be:
- Succinct and effective
- Built around clear, relevant KPIs
- Focused on the decisions you need to make
- Delivered quickly enough that you can still act on the information
Where My Experience Comes In:
This isn’t theoretical.
I’ve worked with fast-growing businesses who needed clarity before they scaled.
I’ve turned around businesses that were profitable on paper but leaking cash every month.
I’ve challenged public sector finance teams over their spending and transparency.
And I’ve sat on both sides of the table, delivering reports and making decisions based on them.
At Botham Accounting, I bring that experience into how we structure reporting for our clients. Because ultimately, it’s not about reporting for the sake of it – it’s about helping you run your business better.
What Should You Do If Your Reports Aren’t Working?
Ask yourself:
- Do I know what decisions I need to make—and do my reports help me make them?
- Are the most important numbers front and centre?
- Am I getting commentary, not just a PDF?
- Is my accountant helping me use the data—or just sending it?
If the answer to any of those is no, then it’s time to review how your reporting is done.
At Botham Accounting, We Do It Differently
We work with owner-managed businesses across a range of sectors, from care homes and manufacturing firms to property groups and professional services.
We start with your business – not our systems. We:
- Listen to how your business works
- Build reporting around your decisions
- Focus on the numbers that matter
- Keep it timely, consistent, and clear
- Explain what it all means – without the jargon
Ready to focus on what really matters?
📩 Contact me: [email protected]
About the Author
Tim Baum-Dixon – Director, Botham Accounting (South Yorkshire)
Tim Baum-Dixon is a Chartered Accountant and Director at Botham Accounting, leading the firm’s South Yorkshire office based in Sheffield. He has nearly 20 years of experience advising SMEs and owner-managed businesses, helping business leaders make confident, informed decisions based on clear financial information.
Tim has worked in both practice and industry, running finance teams, departments, and entire businesses. He has led organisations through strategic change to increase profitability, improve productivity, and boost overall performance. His approach is practical, commercial, and rooted in real-world leadership experience.
Working with clients across Sheffield, Rotherham, Barnsley, Doncaster and the wider South Yorkshire and Midlands area, Tim focuses on helping businesses strengthen financial control, understand key drivers of performance, and plan for sustainable growth.
As an elected borough councillor, Tim also sits on panels that scrutinise public sector departments and budgets—bringing a strong understanding of governance, accountability, and strategic oversight into his work.
