Understanding What Exactly Is Management Reporting

calculation for management reporting

As business managers, it’s important to understand where their brand is positioned in terms of finances and operational performance. Having that knowledge of whether the company is in the red or not can often help you make better choices in the future and steer where the business should be focusing.

A flurry of data can say a lot, but it can be challenging for any regular person to decipher. Management reporting is a phrase that’s often thrown around when it comes to assessing where your business is at, but what does it actually mean? And who’s responsible for it?

Defining Management Report

A management report is a set of information that is given to a business owner and manager to showcase relevant metrics to their performance. The data being shown is often collected throughout different departments and teams in a small company, often taking sales into account.

Most management reporting is often presented via graphs and charts. The visual representation of the product can often make it much easier for managers to absorb and understand the insights it provides rather than construing the raw version. As implied above, management reports are used in order to understand how the business can be lead better.

Management reports are best assigned to an accounting firm that will be able to handle all your financial data. It can be taxing on time and energy to assign someone else within the company to handle this financial report, after all. Allowing a professional to focus on this responsibility will give you accurate data and let you allot resources to focus on business growth.

Interpreting a Management Report

The top three elements business managers will often observe in a management report is budget, cash flow and KPIs. Budget is one of the most important parts of a statement as it provides you with how much your business is working with. The amount of cash in a given period of time can help you manage your goals better.

Cash flow is also significant. Understanding how money is moving in the business in terms of investing, spending and earning will allow business managers to assess the activities going on. If it seems like a company’s cash flow is unbalanced, perhaps too much money is going out of the business with nothing in return. A manager should make a decision to rectify that.

Picking KPIs for a Management Report

KPIs or key performance indicators can differ from company to company, and even more so for the department creating a similar report. The KPIs in a management report is used to answer whether or not the actions of business managers are helping the company progress and meeting its objectives.

Businesses that are offering products are bound to have different signifiers in contrast with a service provider. Here are some examples of general KPIs that all companies use:

  • Productivity of different department staff
  • Employee satisfaction rating
  • Profitability of the business’ clients
  • Return on investment
  • Customer acquisition


Management reporting is something that businesses of any size should be able to utilise. It can be rather crucial in managing a business just right, so having that updated information provided in the report from month to month can be a lifesaver.

Looking for an accountant in Caloundra to handle your management report? SMB Accounting in Australia offers to do your reports, providing individual tax returns and audits to help your small business. Contact us today!