Management Reporting Is Not Just About The Financials

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Caroline Billington
07954 440241

Managing a business involves a range of disciplines and not all of those involved in decision making will have financial expertise. Financial accounts comprising a set of numbers squeezed on to an illegible single page or as part of a complex 8 page pack is unlikely to be read or helpful.

Whilst the finance department is likely to have responsibility for producing management information it cannot be done in isolation if it is to be meaningful and, rather than just providing numbers, guide the user through them.

Management Reporting that properly explains past performance and informs decision making will consider:

–  capturing, processing and analysing data (financial and non financial) in a way that is appropriate to the business.

–  comparing results to plan/forecast with appropriate management discussion to confirm validity. Variances will also help to update future forecasts when appropriate.

–  identifying KEY numerical information clearly from within the overall information presented.

–  including key data that explains/drives the financial performance. This may be financial ratios, staff related, productivity information or whatever is relevant to an individual business.

–  WORDS. All management reporting should include words, based on the evidence, which can be understood by all those involved in decision making.

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