What Is Reporting In Management.Analyzing, and presenting information about business operations to stakeholders, both within and outside the organization. The purpose of reporting is to provide decision-makers with timely and relevant information to enable them to make informed decisions and take appropriate actions.
In management, reporting can take many forms, such as financial reports, operational reports, performance reports, and strategic reports. These reports can cover a variety of topics, including sales figures, revenue, expenses, profits, customer satisfaction, employee productivity, and market trends.
Effective reporting in management requires the use of clear and concise language, accurate data, and relevant metrics. It also involves ensuring that the reports are easily accessible and understandable by their intended audience. By providing actionable insights, reporting in management can help organizations to identify problems, assess performance, make informed decisions, and drive continuous improvement.
What Is Reporting In Management; Types of Reports Used In Business Management Accounting?
In the financial activity of companies, the “reports” are obtained as a final product. With these we can know the economic situation of the organizations and create the Ishikawa diagram if problems are detected.
In this sense, it is important to know what are the types of reports that are used in the management accounting of companies as we present it below.
Variation reports
Variation reports allow you to obtain information about the manager’s performance. These reports are submitted by management accountants each month who expose the variances incurred in the costs of materials, labor, and overhead.
Despite the fact that the management accountant works jointly with the department manager, the latter must explain the differences or variations by identifying the causes of them.
The budget report
The budget report allows staff to work on preparing an annual budget . This resource is useful for planning activities for the following year. In this sense, the management accountant presents the labor report and the manager reviews the actual expenses and adds the costs for the following year.
The budget report can combine budget data from all departments in a company. This includes some costs derived from promoting a product or marketing among others. The manager receives the final budget report and this is used as a basis for evaluating the company’s performance for the following year.
The analytical report
The analytical report allows you to communicate the financial impact after carrying out certain activities. Managers and other workers are in charge of analyzing the various actions while management accountants are responsible for presenting the report.
Actions that a company can take include deciding to hire temporary labor, include more employees, develop human resources, or purchase a component. According to the decision taken, the analytical report is developed.
Labor reports
Labor reports allow managers to obtain information on total hours of work, overtime, and the monetary resource available to each department. The work of the managers includes the development of the management of the benefits and the programming of the tasks.
Therefore, the labor report is used to determine if employees are abusing the number of overtime hours and to define if it is necessary to hire more personnel.
