Helping you approach business smarter
Management reporting isn’t required by law, but you can bet the most ambitious and successful decision-makers in business capitalise on itto achieve their strategic goals. Would you not want to be one of them?
Management reports are difficult to put together, however, and you’re already busy running a business with people relying on you to focus on them.
But if you want to take a step back and analyse your business, understand what makes it tick and make better long-term business decisions, you need quarterly or monthly reports that tell the truth of the situation. With them, you’ll never have to do business based on assumptions ever again.
What are management reports?
As the name suggests, management reports are ultimately designed to help key decision-makers in a business manage the business by providing them with financial data that gives an overview of the previous month or quarter.
With all this data in one report, you can easily track how your business is performing in the short term so you can make better decisions in the long term. Put it this way: you’ve heard of military intelligence, which is essential for the armed forces to do their job. Well, management reporting is a form of business intelligence, tracking things like cashflow, budget, profit, wage/revenue ratio and employee productivity.
Why is management reporting so important?
We can probably agree that a data-driven approach is essential to achieving our strategic goals as businesses, but why, specifically?
- Understand your organisation’s position. Management reporting helps you understand the current state of your business, and which strategies are or aren’t working.
- Enhance internal communication. Your reports will ensure everyone — employees, investors, clients — is on the same page.
- Boost interdepartmental collaboration. Management reporting can enhance interdepartmental collaboration, encouraging your team to work towards a common goal.
- Better-decision making. Regular reports will help you make your business run smoother, which is the best recipe for achieving long-term success.
- Peace of mind. Remove uncertainty from your finances with management reports. You can also share them with lenders and investors to reassure them that you’re the real-deal.
What are in management reports?
Management reporting involves pulling together a lot of financial data. It’s quite the undertaking, but one that we, as, let’s be frank, data nerds, live and breathe for.
- Profit and loss account. Displays the net income of your business over the previous month or reporting period to give a snapshot of its financial health.
- Cashflow. A cashflow analysis lets you track the money flowing in and out of your business to determine where it makes money and how it’s using it.
- Accounts payable. An accounts payable report measures your business’s outstanding operating debt. Your report will allow you to track where you need to direct funds first and plan your future payments.
- Accounts receivable. This report is crucial to keeping track of all money customers owe you so you can determine your projected income and whether you need to get in touch with late payers.
- Balance sheet. An end-of-period report that tabulates your business’s assets, liabilities and stockholder equity. It’s your best tool to understand the financial health of your business.
Why you should choose EV Accountants for your management reporting
Instead of struggling with management reporting on your own, you can get the help of EV Accountants.
We’re well-versed in collecting data and compiling monthly reports, so we’re confident that we can accommodate you, no matter the exact type of management report you need. With us, you’ll always have access to the accurate financial information that reflects the reality of your situation.
Don’t worry — we won’t hand you a set of papers sprawling with unintelligible numbers and tables. Instead, we’ll create a set of reports that anyone reading them can understand at a glance. No jargon, no long-winded paragraphs. Meanwhile, visual data and graphs will help you easily identify trends.
Are you ready to take the next step? Talk to us about management reporting and how we can help.