Explain performance
Separate changes in volume, price, mix and costs where the evidence supports it. Distinguish a trading movement from a timing difference, accounting adjustment or unusual item.
Management Reporting | Consult EFC
A useful board pack explains what changed, why it changed and what management should do next.
Consult EFC builds management accounts, KPI frameworks and board reporting for UK SMEs and technology businesses. Work directly with Kishen Patel to connect financial information, operational drivers and cash, with a reporting scope your team can sustain.
The brief
Management reporting brings financial results, operational measures and forward-looking information together for management decisions. The aim is a consistent account of performance, cash and risk, rather than a collection of unexplained charts.
From information to action
Separate changes in volume, price, mix and costs where the evidence supports it. Distinguish a trading movement from a timing difference, accounting adjustment or unusual item.
Show why a profitable period did or did not produce cash. Explain collections, stock, supplier terms, capital spending and financing alongside the operating result.
Close the pack with actions, owners and dates. Highlight decisions that require leadership input instead of burying them among routine tables.
The core pack
We agree the audience, entities, periods, accounting policies and sources before designing the output. Management reporting for a founder is not necessarily the same pack a lender or investor needs.
| Component | What it should explain | Example output |
|---|---|---|
| Executive commentary | The material movements, risks and decisions | A concise summary linked to supporting schedules |
| Financial performance | Actuals against budget, forecast and the relevant prior period | P&L, balance sheet and variance bridges |
| Cash and working capital | Liquidity, collections, commitments and near-term pressure | Cash bridge, ageing and forecast summary |
| Operating KPIs | The drivers behind the financial result | A defined metric library with owners and source systems |
| Forward view | What the latest evidence means for the plan | Reforecast, scenarios and a decision log |
Explore the detail
Compare actuals with budget and a relevant prior period, then investigate volume, price, mix and cost drivers. Document material accounting and timing differences.
Illustrative workflow. Actual procedures, inputs, responsibilities and exceptions are agreed for your business.
Reliable before impressive
Agree the accounting records, reconciliations, cut-off and review process. Unexplained opening balances and incomplete records are identified rather than hidden by presentation.
Document what each KPI includes, excludes and measures. Revenue, bookings, ARR, billings and cash receipts can describe different things and must not be used interchangeably.
Name who supplies, reviews and approves each input. Set version control, a reporting calendar and an escalation route for missing or uncertain data.
Fit the business model
A professional services pack may focus on utilisation, recovery, delivery capacity and work in progress. Commerce and manufacturing may need stock, purchasing commitments and working-capital analysis. Software and AI businesses may need recurring-revenue bridges, retention, implementation effort and compute costs.
We remain sector agnostic. The right measures follow the way your business earns revenue, delivers value and uses cash. A standard SaaS dashboard should not be imposed on an unrelated business model.
For a forward-looking planning engagement, see FP&A services. For ongoing senior ownership of the finance agenda, explore fractional CFO support.
Use the sample pack to decide whether a variance changes the latest forecast, requires action this month or can be monitored. Put the owner and next review date alongside each action, and tie actual results to signed-off management accounts.
Explore outsourced month-end close if the source figures arrive too late for the board.
A monthly board pack gives directors the figures, the reason for each material variance and the action required. This fictional example shows what that commentary can look like.
| Measure | Actual vs plan | Commentary and action |
|---|---|---|
| Revenue | £475k vs £500k | £25k below plan. Sales to confirm whether delayed renewals are timing differences or require a forecast reduction. |
| Gross profit | £285k vs £315k | £30k below plan. Gross margin fell from a planned 63% to 60%. Operations to review delivery costs before the next forecast. |
| Closing cash | £310k vs £380k | £70k below plan, driven by £45k in delayed collections and £25k in earlier supplier payments. Finance to update the weekly forecast and chase overdue receipts. |
Agree a reporting cut-off, a threshold for commentary and an owner for each action. Reconcile the figures to the management accounts and put the board’s decision on the first page.
Discuss your board packSee the worked board pack guide for a fuller example. If the numbers arrive late, see our month-end accounting service.
Your deliverables
01
A pack structure, source map, reporting calendar and division of responsibilities agreed for the engagement.
02
The agreed accounts, KPIs, cash analysis, variances and commentary, with checks and material limitations made clear.
03
Definitions, owners, calculations and data sources so the business can use consistent measures.
04
A walkthrough, update instructions and an agreed review routine. Ongoing production or leadership support is scoped separately.
How we work
Clarify your objective, audience, information, deadlines, deliverables, responsibilities, fee and VAT treatment.
Assess the records, definitions and assumptions. Identify gaps and any accounting, tax, legal or specialist input required.
Complete the agreed work, document important judgements and review outputs with the relevant people.
Explain checks, limitations, ownership and updates. Additional work and recurring support are agreed separately.
Your questions
The agreed scope can include management accounts, cash analysis, KPIs, budget comparisons, forecasts and board commentary. We define entities, periods, sources, frequency and responsibilities before starting.
Yes. We can use agreed accounting outputs and coordinate with your accountant or finance team. Bookkeeping, reconciliation, accounting judgement, reporting and review responsibilities need a clear owner.
No. A management reporting engagement does not itself provide an audit, review assurance or independent verification of every source record. The scope and limitations are agreed in writing.
Recurring production can be included where agreed. A design-and-handover project and an ongoing reporting service are different scopes, with different information and review responsibilities.
We start with the business model, strategy and decisions. Measures need a clear definition, reliable source, owner and explanation of how management can act on them.
Yes, where relevant and supported by the data. We distinguish recognised revenue, recurring-revenue measures, billings and cash, and consider retention, delivery effort and usage costs where useful.
The fee depends on the records, entities, complexity, pack, frequency and ongoing responsibilities. We agree a defined scope, fee and VAT treatment before work begins.
That depends on record quality, source access, reconciliations, decisions on definitions and the review timetable. We agree milestones after reviewing the information, rather than promise an unsupported standard turnaround.
Work directly with Kishen
Tell us the objective, where things stand and any important date. A short outline is enough to start.
Kishen Patel is an ICAEW Chartered Accountant with experience across Big Four audit, investment banking and corporate advisory. Consult EFC has advised 100+ businesses and remains sector agnostic.
We agree scope, information, responsibilities, fee, VAT treatment and timing before work begins. An introductory call does not commit you to an engagement.
Prefer to explore first? Use the relevant assessment tool for an immediate planning result and downloadable action plan. It is not professional advice.