Management Reporting

Unlike published financial statements, which follow strict accounting standards and are aimed at outside investors, management reports are internal. They can be shaped to suit whatever managers need to know.

Typical management reports compare actual results with budget and with the previous year, highlight key performance indicators, break results down by product, region or team and explain significant changes. They are usually produced monthly, with some key figures tracked weekly or even daily.

For example, a retail chain's monthly management report might show sales by store, gross margin by product category, staff costs as a percentage of sales and stock levels, along with commentary on why some stores performed better than others.

Good management reporting is timely, accurate, focused on what matters and easy to understand. Too many figures can hide important messages, so the best reports concentrate on the few measures that most affect the business's success.