Keys to Effective Management Reporting

Management reporting by definition is data organized to run an organization. It can be developed and used in a variety of ways including strategic business decisions, operational management, and monitoring performance.

The accounting function will provide periodic reports typically for statutory purposes such as public filings and tax returns. They are important but they unfortunately do not always provide insights leaders need to run their organization.

Effective management reports need to have the following elements:

• Context – Financial numbers by themselves do not always tell the full story. Operational metrics or industry benchmarks provide insights to how you are performing.
• Insightful – It needs to have the right details for the audience. This show what is happening in the organization. Executives need different reports from operational managers who are running one segment of an organization.
• Directional – Time series reporting such as the last five quarters can show where you are heading. A single point in time cannot show that.
• Timely – The reports must be delivered for the recipients to make timely decisions. Ideally the reports are automated (as much as possible) to get them out quickly.

Management reporting should provide value to leaders in their decision making process. Otherwise they risk making decisions without enough meaningful information.

Our firm can help your organization make sense of your data. Please contact us to hear how we can help you understand your financial data and help you develop effective management reporting.