When it comes to understanding your business finances, the terms statutory accounts and management accounts are often used interchangeably—but they serve very different purposes.
Both are essential, but for different reasons. One keeps you compliant. The other helps you make smart decisions. And if you’re only relying on one, you’re probably missing out on insights that could shape the future of your business.
Here’s what you need to know.
Statutory Accounts: Meeting Legal Obligations
Statutory accounts—also known as annual accounts—are the financial reports legally required for all limited companies in the UK. They provide a formal summary of your financial position and must be submitted to Companies House, HMRC, and sometimes stakeholders like shareholders or lenders.
These accounts include:
- Profit and Loss Statement
- Balance Sheet
- Notes to the Accounts
- Director’s Report
- Accountant’s Report (if applicable)
They are prepared in a specific format and based on the accounting standards set out by the Financial Reporting Council (FRC), ensuring consistency across companies.
The main purpose of statutory accounts is compliance—demonstrating that your business is accurately reporting its financial performance and fulfilling its legal responsibilities.
Management Accounts: Helping You Make Better Decisions
Management accounts are not a legal requirement—but they are one of the most powerful tools a business can use.
Typically prepared monthly or quarterly, management accounts provide a real-time, detailed picture of your business performance, helping you stay in control of your finances and make informed decisions.
They can include:
- Customised Profit and Loss reports
- Cash flow forecasts
- Budget variance analysis
- KPI tracking
- Department or product-level performance
Unlike statutory accounts, which look backward over the past year, management accounts are forward-looking. They help you understand where the business is today and where it’s heading.
A study by CIMA (Chartered Institute of Management Accountants) found that businesses using regular management reporting are more agile, more resilient, and better prepared for growth [CIMA, 2021].
Why You Need Both
It’s not a case of either/or—statutory and management accounts complement each other.
- Statutory accounts keep you compliant, build trust with lenders and investors, and offer a snapshot of your financial position once a year.
- Management accounts keep you agile, allowing you to respond to opportunities and challenges with confidence, backed by up-to-date insights.
Together, they provide a complete picture of your financial health—from meeting your legal duties to supporting strategic decision-making.
For example:
- Want to secure funding? Statutory accounts demonstrate your history, while management accounts show your current momentum.
- Planning for expansion? Statutory accounts validate your track record, but management reports help you forecast what’s next.
In short, statutory accounts are the foundation; management accounts are the roadmap.
How Kingston Burrowes Can Support You
At Kingston Burrowes, we help business owners understand not just the numbers—but the meaning behind them.
Our team delivers both accurate, timely statutory accounts and insightful, tailored management reporting. Whether you’re looking to stay compliant or build a strategy for growth, we’ll make sure you have the right information at the right time to support your goals.
We don’t just tick boxes—we help you move forward.
Need Clarity on Your Numbers? Let’s Talk.
If you’d like to explore how regular management reporting could give you a clearer view of your business—and how we can take care of your statutory accounts while we’re at it—we’re here to help.
Get in touch with Kingston Burrowes today to discuss how our accounting services can support your business success.
📞 Call us on 020 3627 4321 or
📩 Send us a message to arrange your free consultation.
