Management reports are official documents that measure the results of a micro or small company, with the objective of assisting decision making. Its analysis allows managers to have a broader view of the business and can strategically plan their operations and avoid the formation of debts, optimize operational activities and increase the chances of profitability.
This document has always played a fundamental role in the development of organizations, however, with the constant fluctuations in the market and now, the economic crisis generated by the pandemic of the new coronavirus (COVID-19), management reports have become even more important.
In this post we will explore in more depth the function, importance and the 9 main types of management reports used in the market. Keep following the post and get to know in detail the document that can transform the future of your company. Good reading!
What are management reports?
As we said, management reports are strategic documents that guide the development of micro and small businesses. Through careful analysis of its periodic results, decision making is facilitated making business operations more assertive.
Those management reports must be objective and have up-to-date, relevant and highly reliable data. Considering that they are capable of devising strategies, which can guide the future of a business, both for success and for failure, there is no room for mistakes.
The document also points out the necessary measures so that the business does not miss out on growth opportunities, does not accumulate debt, optimize its operational activities and enhance its profitability.
To guarantee its quality, managers must, first of all, structure a model to be followed. This way, it is easier and faster to identify essential information, goals, periods, sectors, suppliers, values, among other data that must be present in the report.
In addition, each time a new report is created, the same model can be used to standardize this analytical operation and facilitate the strategic reading of the next studies.
If you want some tips on how to maintain data consistency in strategic reports, we recommend reading this article here.
What is the purpose of management reports?
Management reports can be developed to meet the diverse strategic demands of the business, such as the financial situation, budget planning conditions, general or segmented performance, semiannual or annual productivity, and so on.
The objective of the document must be defined by the organizational leaders, according to the needs and demands of the business.
Regardless of the purpose, when well structured and analyzed, the management report extends conclusive data that facilitates general decision-making, such as the need to hiring or resignation of employees, the satisfaction and profitability of employees, project performance, quality of financial transactions, balance between revenue and expense, and so on.
Much more than indicating essential corrections, management reports indicate the state of health of the organization. Thus, allowing strategic planning to gain precision and the company to optimize its commercial performance.
What types of management reports are most important to organizations?
Now that you know what management reports are and what they are for, let’s get to know the 9 main types used in the market to enhance the analysis and planning of an organization.
1. Cash Flow Report
The first of the 9 types of management reports that we will explore in this post is the Cash flow. This document allows reflections from the financial launches of the business.
Clearly displayed, data such as the difference between the forecast and the monthly results achieved, the possibility of having some positive value stopped, conditions for anticipating costs, preparing the cash for significant transactions, and so on, can be analyzed to optimize results .
Essential for showing the real financial situation of the company, this report also allows managers to carry out investments more safely and confidently.
2. Sales report
Another of the 9 types of management reports fundamental to a company is the Sales Report. After all, the survival of any organization is directly linked to its commercial capacity, be it products or services.
Although each company has its own structuring model, some information must be present in any such report, such as the number of pieces or activities sold, the value of the average ticket, the time of a purchase journey (period between the first contact with the company until the consummation), and so on.
The analysis of this document allows managers to monitor the performance of their workforce, identify a pattern of behavior for customers, know the volume of “round” sales (sales completed without return), among others, with more agility.
3. Accounts Payable Report
Any and all activities carried out by a company inevitably generate an account, which must be paid to avoid harmful situations. Precisely for this reason, a strict control must be made to ensure the financial health of the organization.
The Accounts Payable Report is the document that makes this administration feasible, pointing out data such as the destination and the value of fixed expenses (rent, wages, labor charges, etc.) and variable expenses (commissions, inputs, benefits, etc.), number of accounts pending and paid, amount spent on fines and fees, number of installments linked, dates of movement, and so on.
And with that, it allows the leaders to make comparisons of managerial efficiency and shape the effectiveness of the next payments.
4. Accounts Receivable Report
Like the Accounts Payable Report, the Accounts Receivable Report is also a fundamental document that guides the financial health of a company. However, unlike the previous one, the purpose of this document is to evaluate the financial resources that will still be added to the business, according to its planning.
Therefore, it considers information such as dates and amounts to be received, possible discounts offered, collection of fees and tariffs, number of occasional customers, the number of contacts required for payment to be made, among others.
The analysis of an Accounts Receivable Report allows you to plan investments, control cash flow, effect hiring, structure improvements in processes, optimize forms of payment and general financial transactions, control incidence of default, and so on.
5. Balance Sheet – BP
In addition to being fundamental, the Balance Sheet it is mandatory in every country; only microenterprises and rural entrepreneurs are exempt from this financial statement.
One of the 9 most well-known management reports, this document allows you to view the real condition of an organization’s assets. A detailed balance sheet survey is orchestrated to validate the balances of the business accounts and present its accounting, financial and economic position.
In addition, in BP, the linked accounts must be identified according to their nature. Are they:
- Assets – assets and rights;
- Liabilities – liabilities and obligations;
- Equity – the difference between assets and liabilities.
6. Business Budget
Another of the 9 types of management reports that are fundamental for a company is the Business Budget. This document aims to outline strategies to optimize the profitability of a business.
For this, managers must consider information such as the company’s revenue and expenses forecast, possible sources of income (sales, income and loans), costs (fixed and variable), demands (renovations, equipment, etc.), financial goals , and so on.
Their analysis is based on the company’s previous figures. That is, it is considered the last 3 months and / or the same period of previous years.
7. Statement of Income for the Year – Income Statement
This is a management report that also includes accounting analytical values. Its objective is to detail the net results for the year in a given period, that is, the company’s profitability.
This detailing can be done by checking specific data such as revenue, costs and overheads. To do so, analyze the financial health business, identifying whether profits or losses are more frequent, and structuring corrective plans if necessary.
In addition, the DRE is a powerful tool for managers to define the future of the company through investments and partnerships.
8. Customer Satisfaction Report
Another of the 9 types of management reports fundamental to a company is the Customer Satisfaction Report. This document measures not only the contemplation, but the loyalty of an organization’s consumers.
With it, the manager can detect possible flaws in his operational processes and production chain, guided by the opinion of an essential element for business success: the customer.
In addition, this type of management report is one of the most used methodologies for this report model is the NPS (Net Promoter Score).
9. Employee Satisfaction Report
Finally, the last type of management report that we will explore in the article is the Employee Satisfaction Report. As the labor market is more and more competitive, maintaining the contemplation of the main instrument of value of any company, employees, is essential to attract and retain talent differentiated.
The Employee Satisfaction Report should assess data such as interpersonal relationships between colleagues, supervisors, sectors; benefits; wage; work conditions; organizational climate; among others.
Of course, it is not always possible to meet all the expectations of employees, but this document allows to identify significant flaws and correct them in a precise and agile way to favor this relationship. In this way, the organization maintains a more motivated team and the productivity is assured.
How to produce efficient management reports?
To help your company structure management reports efficiently and promptly, we have separated some special tips. Check it out below!
- management reports must be objective to facilitate analysis and streamline the decision-making process;
- the purpose of the report is the first issue to be addressed in the drafting process. The objective must be very well defined to avoid confusion;
- the choice of data used in the report must be made carefully. Only relevant and highly reliable information should be used;
- structuring a model for management reports is essential to add a functional and efficient standard to future analyzes;
- selecting those responsible for each stage of the reporting process is important to maintain operational control and ensure that all quality factors are met;
- it is necessary to have criteria for the choice of performance indicators. Use of KPIs (Key Performance Indicator) more appropriate to the real analytical needs makes the report more consistent and objective;
- the presentation of the report must be done in an intelligent and strategic manner, considering the target audience, the volume of data, the sequence of information, the importance of the results, format, language, time, etc.
Therefore, management reports are essential for the maintenance and growth of the organization. In addition to adding precision and agility to decision making, these documents also ensure organizational safety and health.
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