Management Reporting Guide: Definition and Tips

Management reporting helps you see what’s really happening in your business. By picking a few key measures, presenting them clearly in simple charts or tables and keeping the data up to date, you’ll spot issues sooner and keep everyone on the same page. In this guide, we’ll explain what managerial reporting looks like, why it matters for your team and share practical tips to get your own reports up and running without fuss. 

Management reporting refers to the process of creating, analysing and presenting information about various aspects of an organisation's performance in order to enable decision-makers to make well-informed decisions about the future direction of the organization. It’s a fundamental component of corporate performance management, bringing together data, processes and governance to drive strategic alignment.

The main objective is to provide accurate and relevant data to managers, leaders and other decision-makers so that they can make the right decisions that propel the organisation forward towards its set goals.

Management reporting involves gathering data from various sources within the organisation, such as financial systems, operational databases, sales statistics and more. Once the data is collected, it is analysed to identify trends and patterns. Various analytical tools and techniques can be used to transform raw data into meaningful information.

Reports

What are management reports? They are tools used to present business performance, progress, and key insights in a clear and actionable format. Based on the analysis, management reports are generated to communicate results to stakeholders across the organisation. 

These reports often include dashboards, spreadsheets, graphs, charts, and written summaries. They highlight trends, track KPIs, compare actuals vs. forecasts, and help teams make informed decisions. 

Key Performance Indicators (KPIs)

Management reporting often focuses on specific key performance indicators (KPIs) that are relevant to the organisation's goals. These KPIs are metrics that reflect performance in critical areas such as financial performance, operational efficiency, customer satisfaction and employee productivity.

Timely Information

It is essential to receive the right information in a timely manner, enabling decision-makers to respond quickly to new challenges and opportunities.

Clear Communications

Effective managerial reporting involves clearly communicating data and insights. Reports should be easily understandable for non-technical audiences, enabling decision-makers to grasp the implications and take appropriate actions. 

Reports can be tailored to the needs of different stakeholders. Senior management may require high-level summaries, while department heads may need more detailed operational insights.

Continuous Improvement

Management reporting is not a one-time activity; it is an ongoing process that requires continuous refinement. As business conditions change, you’ll want to evolve not only your KPIs but also your plans, leveraging scenario planning to stress-test forecasts and stay ahead of whatever comes next.

Strategic Decision-Making

Management reporting for businesses forms the foundation for strategic decision-making. By understanding trends and areas for improvement, organisations can make the right decisions to optimise their operations and achieve their goals.

Technology and Tools

Since spreadsheets pose security risks, many organisations use specialised software and tools for data collection, analysis and reporting. These tools can help streamline the reporting process and provide more accurate and up-to-date information.

Here is how to create management reports that are actionable:

1. Include Insights That Drive Performance 

According to a Deliotte management reporting survey only 24% of time is spent on analysis of reports and the reason is that companies are spending more time on low value-added activities.

By finding valuable insights in your reports, it’s much easier to make the right decisions. Take your time and analyse and prepare your reports with both internal and external insights that provide value for your organisation.

2. Create Reports That Are Easy to Read

Use dashboards and charts that visualize your data in a clear way. Only present the essentials in your reports and if the management team asks for more information make sure to create a report that’s drillable to source transactional data. Keep it simple by only showing the most important KPI:s.

Below you’ll find an example of a report from Mercur Business Control:

3. Collaborative Reports

With all your information in one single solution, it’s much easier to collaborate. Create reports that you can share with other departments within the organisation. This way, it will be easier for you and your colleagues to find valuable insights from your monthly management reports. Create reports that are accessible at any time and keep them up to date with real-time data.

Mercur Business Control is one of the leading solutions for management reporting. In our cloud-based application you can connect multiple data sources, collaborate in your reports, 'capture forecasts and narrative' and deliver your insights. By encouraging a data-driven organization it's easier to make improved informed decisions and at the same time focus on your business growth. We’ve helped 1000 of Mercur Business Control users  manage cost and grow profits for over 40 years. Read about Hellman and how they manage performance in 56 countries in real time. 

What is management vs. financial reporting?

Management reporting is internal, forward-looking analyses, such as dashboards, KPIs, budgets, variance and project updates, to drive decisions and performance. Financial reporting is external, backward-looking, standardised statements, such as balance sheet, income statement and cash flow.

What are the different types of management reports?

Common management reports include KPI dashboards (sales, operations, customer metrics), budget vs. actual analyses, variance reports, project status and risk logs, resource and HR utilisation, cash-flow forecasts, sales pipeline reviews, marketing performance and ad-hoc analytical studies.

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