Companies rely increasingly on management reporting to improve their business operations and to stay one step ahead of their competitors. What is management reporting? And is it a must for your company?
What is management reporting?
Management reporting is a form of business intelligence. The software collects data on various business aspects and organises them into a clear overview. This overview provides answers to questions such as:
- Is it a good idea to hire more employees?
- Which customers generate most profit?
- Should we increase our marketing efforts?
Because data are easier to interpret, it becomes easier for decision-makers to make decisions with more impact.
How does management reporting work?
Management reporting collects data on the various departments of your company. Reporting is based on financial and operational data, which are organised into a digital dashboard. It gives you a clear picture of your company’s health over a given period.
Management reporting works with KPIs (key performance indicators). If they are not achieved, you immediately know where to adjust.
What’s the point of management reporting?
Professional management reporting software provides a detailed overview of how your company is performing. It ensures you are making the right decisions and you are not having to chase after the facts. This means:
- More efficient operational processes in your company.
- You can monitor the progress
- Your company remains a formidable competitor.
- More efficient business management.
- You are steadily working on improving your business.
What’s the difference between a financial and a management report?
Management reports and financial reports are sometimes mixed up. But there is a big difference:
- Your company keeps financial reports for accounting purposes. They provide an overview of your company’s performance, but are not detailed enough to make effective adjustments.
- Management reporting is up to date and combines not only financial, but also operational data. This means it’s easier to make adjustments on time and to monitor your company’s progress.
How do I start with management reporting?
Drawing up a management report is a lengthy process. This is also necessary if you want to use the software to inform all decision-makers in your company quickly and clearly.
The choice of KPIs, for example, is a real headache: too many causes confusion and stands in the way of a quick overview.
Another issue is the structure of the data: if this is not clear, you will never get the most out of your reports.
Do you need help with your management reporting?
Management reporting provides a quick, in-depth health check of your company and helps you to be more efficient. Do you need an expert who aligns your management report seamlessly with your business and all users? Contact us: We are happy to help you.