Management Reporting – Your story through your data !!
It’s a constant reconnaissance for decision makers as to understand:
- Where do my sales come from?
- How is my Product Performance? (Increasing/Decreasing)
- What is influencing my Working Capital?
- How can I manage and control my cost? (Expenses/Receivables)
- Who are my profitable customers?
Most people in business are familiar with financial reporting to maintain their accounts. They follow an established set of guidelines specified as per Generally Accepted Accounting Principles (GAAP). The traditional method of reporting financial information is to enter transactions into an accounting tool with the objective of ensuring compliance to regulation. While these reports give you information of your business operations to aid legal purposes, they’re not absolute for making strategic choices. This is Management Reporting. In order to meet these requirements of the management, analysis were put into a PowerPoint presentation for a chart-based and interactive discussions.
Management reports aims at conveying different aspects of the business to the management, in order to help them look deeper into the company data from different perspectives. In short, the objective of management reporting is to trail, analyze and communique business income. . It starts with collecting data of the company tracking key performance indicators (KPIs) from different departments and present them in an understandable way – Using pie charts, bar graph, informative KPI charts, trend lines, etc!
The premeditation of these reports is to canvass cash flow, business performance, utilization of resources and the financial health of the business. This helps make informed decisions about how to manage the business, set a benchmark about performance and get a snapshot of business evolution.
As the quote says, “You can have data without information, but you cannot have information without data”.
Analytics help Business reporting to use qualitative and quantitative company data to analyze and evaluate business processes and foster data-driven decisions based on analytics. It is the process of extracting and transforming raw data, often from distinct applications, into meaningful and useful information. Data could range from financial data, inventory, sales, employee data, client accounts, product information, investment, etc. Hence, the scope of an analytical management reporting system is extensive.
Management Analytics supports decision making by identifying the problems, monitoring the performance, understanding the position, improving management effectiveness and responsiveness to issues.
The major reason why an organization needs an effective management reporting system zeroes down to the constant need of generating reports to analyze, study trends and manage data duplication which leads to error prone reports. It also equips the key decision-makers with proper tools to gain strategic and operational insight into the organization, accelerate business improvement and have an edge over the competitors.
Modern day analytics will assist multi-dimensional data through interactive visualization dashboards that help you drill-down and get a bird’s eye view of your business health and evolution in 2 minutes. This will definitely help in take right decisions with regard to customer behavior, trends and patterns in the business environment. Further, it can enhance your predictive and forecasting elements to make sure you are able to evaluate alternative solutions and decide on the best course of action.
We are a decision science company that assist clients in decision making with the help of Analytics. Talk to us to understand how we can transform your management reporting.