Management Reports: Guidelines for Management Reporting

Management Reports

Monthly management reports that are well-organized and also consistent, aid in keeping your organization’s strategy on track. And, while it may take time and patience to overcome common management report challenges and perfect the process, it is well worth the effort.

What are Management Reports?

These reports give the type of data required for the company’s managers to run the business successfully. They present management’s communication of business results, risks, and also challenges to executive management, managers, or governance bodies.

Management reports are critical for one organizational plan, and generally, every effective leader understands this. They assist them in gaining control and direction over their businesses, as well as making more educated judgments.

Data on significant key performance indicators are collected from many divisions within the organization and presented in a concise, easy-to-understand format.

Management reports also reveal operational and financial information, allowing managers to assess the value of their company over time. They provide the crucial information for decision-makers to proceed on the right path and boost operating efficiency by telling how the organization is performing.

As a result, the purpose of this form of reporting is to:

  • Ensure that certain key performance indicators (KPIs) and performance metrics are monitored and measured.
  • Understand one company’s status and health and make recommendations for the future stages;
  • Establish benchmarks;
  • Direct the future moves of the company’s manager;
  • Improve communication among executives, colleagues, and stakeholders.
  • Assist in the development of action plans;
  • Monitor performance on a regular basis;
  • Encourage ongoing business expansion.

In the past, legacy systems were used to prepare reports for management — and in many situations, they still are. These systems are far more valuable than financial reports, but they are not without limitations. Legacy systems are frequently extremely technical in their operation and interface, making them difficult for most non-IT workers to properly operate. This generates a “lag time” between a member of management requesting a report and receiving it.

These issues have only gotten worse in modern times, as the breadth and also the depth of data available have grown at an astounding rate. “Many [CFOs] are constrained by legacy technologies that do not allow reporting teams to derive forward-looking information from vast, fast-changing data sets,” said Peter Wollmert, an EY global leader, in a comment for a Financial Director article.

Furthermore, according to the article, a survey done by EY financial accounting and advisory services (FAAS) found that 23% of CFOs worldwide believe that “the increasing volume and pace of data is impacting their capacity to give relevant insights to boards.” Modern company dashboards clearly have a lot to offer in terms of this type of reporting. Let’s take a look at the best practices for preparing and delivering them.

Why Is It Necessary to Create a Management Report?

Reports are more than useful for any function and in any business; they are critical to the company’s well-being.

Reporting is especially crucial in management since the stakes are higher and the decisions are more complex and cross-disciplinary. Reports are important to management for a variety of reasons, including the following: they measure strategic metrics to assess and monitor performance, they set benchmarks for said performance, they allow the business to learn from its activity by leaving a track record, and they improve communication. Here is a list of some of the advantages of management reporting:

#1. Measuring strategic metrics to analyze and monitor performance

By now, we’ve realized that if organizations want to expand, they’ll need to implement a system for measuring their performance not only against competitors but also against themselves.

Options like a balanced scorecard system are a great option for tracking and improving performance within a company, as they allow you to monitor objectives and perspectives so you can see how well you’re executing your overall strategy.

#2. Help you understand your position

A management-style report can help you comprehend your position by providing you with the necessary data to gain a glimpse of the health and evolution of your organization. Furthermore, you can use it to focus or realign your approach by comparing it to your competitors.

#3. Setting clear performance benchmarks

Because of your track record, you have a consistent benchmark for how you perform both operationally and financially.

#4. Learning and Replicating

Benchmarks are a guide that tells you what works and what doesn’t when it comes to learning and replicating – or not. It teaches you the best and worst practices to establish or avoid.

#5. Communication Improvement

They enhance communication with partners, investors, consumers, and also coworkers. Management-type reports raise the visibility of various actions across departments and promote internal collaboration.

#6. Improving collaboration

Senior-level reports improve interdepartmental collaboration as a direct outcome of improved internal communication. Departments can leverage management reporting data discoveries to collaborate on specific projects or initiatives, sparking achievement in a number of critical areas, when individuals work together towards a common goal.

#7. Increasing engagement and motivation

A well-crafted manager-level report makes vital company data available to all, improving individual performance. People become more engaged, inspired, and motivated when they are functioning at their peak and are acknowledged for their efforts. This, in turn, will boost productivity throughout the organization.

#8. Fostering continuous business growth

Good management reporting enhances efficiency and also enhances decision-making, which promotes consistency and continuous business growth. If you continuously expand over time, you will secure long-term success – the most potent benefit of management reporting.

What Information Should Management Reports contain?

Here are some things to think about while developing a strong management report:

  • Strategic aims and objectives

Begin writing the report with the end goal in mind. So, consider why you need it, your company’s core drivers, your definition of success, and other data analysis questions.

Once you get the answers, you will understand how to set performance indicators to monitor various elements of the performance.

  • The proper KPIs

The KPIs that should be included in your reports are based on your audience. So consider the data-driven questions that the report’s readers would like to have answered.

  • Customer feedback

Consider this while preparing your report, as it will assist you to see what you are doing correctly or incorrectly.

Reporting on findings from consumer feedback surveys aids in the development of a more precise, data-driven strategy.

  • Story Telling

One of the best management strategies is storytelling, which is presenting raw content as a story in your report. It also facilitates people’s understanding of hard data and numbers by using context, substance, and meaning.

  • Report that is visually appealing

Offer the most crucial spaces on your report to critical KPIs and also secondary or tertiary positions to other indicators. This will make it easier for individuals to process your report without being overwhelmed.

  • Make it clear, scannable, and drillable

Include plenty of white space, contrasting colors, a data range presented next to the data, common metrics that everyone understands, and so on.

  • Visually balanced report format

Show the most essential KPIs succinctly so that decision-makers can absorb the information without being confused.

  • Real-time insights

Real-time insights should be aligned with your goals.

  • Continue to improve

Evaluate your reports on a regular basis and make any necessary modifications to ensure there is no wasteful or superfluous data.

Monthly Management Reports

Generally, monthly management reports that are organized and consistent can ensure that your company’s strategy stays on track. Here is a list of things that the monthly management reports should include:

  • A branded cover page – to make your report look more professional, including your organization’s logo or seal.
  • Mission, vision, and values — these statements explain and reinforce your company’s approach.
  • Table of Contents: Include a table of contents at the beginning to make it easier for everyone to find what they are looking for.
  • Organizational scorecards– feature a detailed overview of your department or organization’s scorecard, sorted in the order it will be read.
  • Detailed Pages — Each of your strategic goals or objectives should have at least one detailed page in your monthly management report.
  • Charts — utilize them to present data on KPIs and discuss your metrics. Check that they are easy to understand, have clear objectives, and are consistent throughout the report.
  • Project Overviews — Instead of reviewing all projects, your monthly report should simply include the projects that drive your strategy.
  • An online version — for your monthly management reports, employ a cloud-based software solution.
  • A customized time-stamped footer — you can put the name of the report, confidentiality statements, and copyright information in the footer.
  • The section for adding action items — is where you record key decisions from meetings.

Financial Reporting vs Management Reporting

Right before we compare these two crucial reports that every business requires, let’s understand what each of them is. Generally, financial reporting is made up of all the financial reports that a business receives about its financial activities. This includes the profit & loss statement, cash flow, account receivable, balance sheet, and account payable. Depending on the size of the business, financial reporting can be presented weekly, monthly, quarterly, or even yearly. It also reveals the financial health of the business. While financial reporting is the type of data required for the company’s managers to run the business successfully. They present management’s communication of business results, risks, and also challenges to executive management, managers, or governance bodies.

Financial Reporting vs Management Reporting: Key Difference

The following are the key difference between financial and management reporting.

Who Uses It?Financial reporting is useful to external stakeholders such as investors, banks, and so on.Management reporting is useful to a business’s internal stakeholders. This includes the manager, departmental heads, Business CEO, and so on.
RegulationIn preparing a business financial report, there are certain rules that must be followed duly. These include IRS, banks, and other financial regulations.There are no specific rules that govern a business management report. However, they are useful tools in making decisions.
FocusThis reveals the overall performance of your financesAllows you to segment every aspect of your business
RecordReveals the business’s financial health over the years.Basically, use in predicting the outcome of a business’s future.


Throughout our trip, we have pondered the question, “what is management reporting?” Outlined the management reporting definition, looked at management report samples, discussed best practices, and also dived down into the business-enhancing benefits of dynamic digital dashboards.

Furthermore, it is evident that by adopting and successfully leveraging the abundance of digital data available to your business, you stand to make the kind of management decisions that will propel your organization forward with force, accelerating your success.

“When utilized as a substitute for insight and knowledge, a point of view can become a dangerous luxury.” –

Marshall McLuhan, a renowned Canadian communications professor

In a summary, you should follow the management reporting examples by hand-picking a small number of relevant KPIs to present and also use your data to convey a clear story. It is also critical to collaborate in order to build a healthy ecosystem of data-driven innovation that will enable everyone in the organization to benefit from the unequaled potential of managerial-style reporting. Knowledge is certainly power, and if you build your business, you will gain enormous benefits both now and in the future.

Management Reports FAQs

How do you write a management report?

Complete steps on how to prepare a management report

  1. Plan before you start. …
  2. Invest in automated tools. …
  3. Use clear and objective language. …
  4. Tell a story to engage readers. …
  5. Define the metrics and KPIs to be used. …
  6. Establish a point of comparison.

What are the objectives of management reporting?

The primary object of management reporting is to obtain the required information about the operating results of the organization regularly in order to use them for further planning and control.

What is included in management reports?

Generally, management reports contain financial and operational reports on a small segment of the business. Management reports can also contain complex and involved reports like the P&L document, accounts receivable aging, or the operating budget. Management reports are a form of business intelligence.

What is a management report in accounting?

Basically, management accounts form a financial report used by business owners and management for day-to-day and strategic decision-making. They are produced, usually, on a monthly or quarterly basis, and provide insight into the current financial health of a business by tracking various key performance indicators.28 Oct 2019

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