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Management reports: what are they and how to do them?

Management reports: what are they and how to do them?

In order for companies to remain competitive, they need to adapt even faster to market trends, which is a difficult task without the help of reliable information. Fortunately, it is possible to get a relevant source of data when using management reports.

Would you like to know more about it? Keep reading and find out what a management report is and learn how to prepare it!

Understanding what management reports are

To run a business, it is necessary to have reliable information on the situation it is in. A management report is nothing more than a document that compiles the data set containing this information.

With these reports the manager has a broader view of the problems his company is facing and the methods for solving them.

Learn some types of management reports

Management reports are used in various institutions. Although its name usually varies according to the company where it is made, its main functions remain the same.

Among the categories of management reports that are most used, we can mention:

Financial reports

This report is intended to present information on the company’s capital. It covers topics such as accounts receivable, defaults, cash flow, and other information related to financial operations.

Based on the financial report, it is possible to have a view of the institution’s finances, which makes it possible to allocate its resources more efficiently.

Satisfaction reports

Satisfaction reports can be used to measure both the customer satisfaction of a company, and that of its employees.

When this report is customer-oriented, it shows how much the customer liked a product and if it is likely that he will do business with the company again.

Based on these data, it is possible to improve products and services.

In turn, when it is prepared thinking about employees, it reports on their engagement and opinion about the work environment. From this information it is possible to work on policies for retention of good employees.

Analysis reports

The purpose of this report is to present solutions to a problem. When a failure is found in company procedures, a document collects and analyzes data about it, then presents possible ways to remedy it. This is how an analysis management report is made.

Learn the method of preparing a management report

Although the management report shows information that is vital to the company, its preparation should be as simple as possible. Focus should be on the information!

Learn about four steps to prepare a management report:

Set the goal

Firstly, it is necessary to understand why the report will be prepared. Once the goal is clear, it is time to start collecting the information that will be used.

Select information

Unnecessary data makes the report confusing and the lack of relevant information may lead to the wrong conclusion, therefore, care must be taken in the choice of data that will be used.

Organize data appropriately

The report should be prepared according to its purpose. If the goal is to compare current company results with past results, for example, the data presentation must follow the same pattern. That is, the report should be made in a way that is easy to understand the information it presents.

Prepare an appropriate presentation

Finally, it is important to think about the person who will receive the report.

If it is intended for a CEO who needs a lot of information to make his decision, it is important that the report be better structured; indexes and summaries become necessary.

But if the goal is to bring the sales team together and compare results from past periods, a simple spreadsheet should be enough.

The presentation of the report is directly related to the amount of information it must provide and to the audience that will receive it.

As we have seen, management reports are an efficient way to stay informed about company departments. If well-crafted, they become useful and accurate tools for the management of a business.

Would you like more information on this subject? Contact us! Our consultants are prepared to answer your questions.