Management reporting is a document reflecting the main processes that were carried out by the enterprise in the reporting period. Moreover, each organization has the right to independently determine the specific constituent elements of such a document. Mainly, reporting is oriented towards 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 at the enterprise, there are basic principles on which management reporting is based. First of all, it must meet the principle of simplicity. You should not overload the document with unnecessary and unnecessary information for a specific user, it is worth including only important indicators. In addition, its size should be clearly defined, for example, one sheet of A3 format . It will also help you choose the most interesting and informative facts. But the main thing: management reporting should be subject to the principle of efficiency, that is, 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 manager to be confident in the effectiveness of the further functioning of the company, as the personnel will act in accordance with the developed guidelines. In addition, the specialist is obliged to perform all the work of filling out the report within the prescribed period. In this case, all information should be clear to the manager of the specific link for which it is intended. Correctly drawn up and competently drawn up management reports fully reflect the activities of the enterprise and do not provoke additional questions.
Since the management staff of the enterprise can determine the content of this document, the form of its submission is also chosen at its own discretion. Conditionally, there are three ways to display information: graphic, text, and in the form of a table. Typically, the specialist relies on the user. For example, a table report will be most convenient and understandable for an accountant, and all corrections and explanations can be provided in the form of a text note. While it is easier for an investor or an employee of the analytical unit to assess the situation using graphs.
Separately, I want to talk about the timing of reporting, as this factor determines its relevance, and, consequently, the timeliness of decisions. So, the division into short- and medium-term reporting is usually used, and there is also periodic. The latter involves the display of indicators that allow you to develop specific measures for the long term, that is, to determine the strategic goals of the company.
The document that most fully reflects the dynamic functioning of the enterprise is considered to be short-term management reporting. An example of it is in the form of daily and weekly collections of indicators, on the basis of which specific activities are developed for the next period. The main users at this level are middle managers.
Mid-term management reporting is compiled monthly. It contains not only indicators for the past period, but also the forecast values of further activities. It is provided mainly to the management team, as it is they who can decide on the need to introduce some adjustments into the production process. Such a document can provide significant assistance to the company and clearly has a positive effect on the financial result. After all, managers and executives see what to expect from the future period while maintaining their previous positions.