A management report is a collection of operational information and data from various sections of a business understandably presented to managers to allow them to make informed decisions. Managers use the data provided to run an entity successfully since it contains risks, issues, and results created for the execution and governance of their duties (Imhof et al., 2022). Moreover, the report provides an insight into the organization’s status that empowers decision-makers to decide wisely, thus increasing efficiency in operations and helping the entity remain competitive.
The information in the management report includes an organization’s strategic goals and objectives, the right Key Performance Indicators (KPIs), customer feedback, and storytelling. In the report, hard data and figures are easily understandable due to the contextualization of the presentation. Additionally, it has a visually pleasing format that helps the users to process the information easily without being overwhelmed. Its clarity, scannable, and drillable nature help everyone to understand it. Moreover, it contains real-time insights that align with the company’s main ideas (Imhof et al., 2022). However, the reports should be tested regularly to ensure all data is present.
The importance of a management report is that it provides a proper means to maintain public relations since it acts as a communication tool. In addition, it helps in achieving goals and overall objectives through continuous and timely evaluation. It involves the comparison of planned and actual targets that state the position and health of the organization (Imhof et al., 2022). The report enables individuals to identify the company trends that can be used in forecasting. Moreover, it is used to satisfy external and internal parties related to the business. The report is a mechanism applied to perform the control function in management; thus, it easy for bosses to direct businesses and make informed decisions. Therefore, managers can utilize it to lead an entity effectively and efficiently.
Reference
Imhof, M. J., Seavey, S. E., & Watanabe, O. V. (2022). Competition, proprietary costs of financial reporting, and financial statement comparability. Journal of Accounting, Auditing & Finance, 37(1), 114-142. Web.