Management reporting - a document reflecting the main processes that are now carried out in the reporting period.Moreover, each institution shall have the right to determine the specific constituent elements of such a document.Mainly, reporting focuses on its users, and the content depends on their requirements and the type of information that interests them.
However, as in the preparation of any document in the enterprise, there are basic principles on which management reporting is based.First, it must comply with the principle of simplicity.Do not overload the paper is superfluous and unnecessary specific user information is to include only the important parameters.Furthermore, it should be clearly defined size, for example, one sheet of A3 size.It will also help to choose the most interesting and informative facts.But most importantly: management accounts should be subject to the principle of efficiency, ie, its content should allow the user to take effective measures to improve the organization.Simply put, the information provided should be timely.
Regular drafting of such a document will allow the supervisor to be confident in the effectiveness of the further operation of the company, as staff will act in accordance with the developed instructions.In addition, the expert is required to do all the work for completing the report within the prescribed period.At the same time all information must be understandable to the manager of a particular level for which it is intended.The regular and well-written management reporting fully reflects the company's activity and does not cause any additional questions.
As the senior staff of the enterprise may itself determine the content of this document, and the form of it is also selected in its sole discretion.Conventionally, there are three ways to display the information: graphic, text and a table.As a rule, the expert relies on the user.For example, an accountant for the most convenient and intuitive will table the report and all the amendments and clarifications can be provided in the form of a text note.While investor or employee of the analytical unit is easier to assess the situation with the help of graphs.
Separately want to talk about the timing of reporting, since this factor determines its relevance and, therefore, timely decisions.Thus, the separation is typically used for short- and medium-term reporting, there is also periodic.The latter involves the mapping of indicators to develop specific activities for the long term, that is, to determine the strategic objectives of the company.
document, most fully reflects the dynamic functioning of the enterprise is considered a short-term management reporting.An example of it is in the form of daily and weekly collections of indicators from which develop specific activities for the next period.The main users at this level are considered mid-level managers.
Medium-term management reporting is compiled monthly.It contains not only the figures for the previous period, and forecast values further action.Available mainly managers, since they can make a decision on the need to introduce some adjustments to the production process.This document can be of great assistance to the company and unambiguously positive effect on the financial result.After all, managers and supervisors can see what to expect from the future period and same position.
