Management Reporting: Best Practices & Examples – Brixx

Running a business and creating effective reports can often overwhelm you as an owner. Although it is key to understand your data and digest your business metrics, creating a robust management report may be out of your comfort zone, which is why we are here to help.

Our comprehensive guide highlights the essentials of management reporting. Learn more about the types of management reports, the benefits, and how to get started. Begin to understand and create management reports and make more informed decisions for your business. Read on!

What is management reporting?

Management reporting is a type of report given to management-level employees within a business. A management report typically involves employees collecting, analyzing, and presenting key information to help with decision making, providing an overview of all business performance. A management report will be completely confidential, specifically for usage internally in a company. The individual elements of the report can be custom to each business, and employees can decide upon the aspects and format presented to management.

It is incredibly important to businesses as it helps summarize key performance indicators (KPIs), and other critical data points, helping management teams to monitor performance, identify trends, assess risks, and make improved strategic decisions.

What are the key types of management reports?

When trying to drive success for your business, different types of reports can serve different purposes, and the type of report can depend entirely on which management employees are being presented to.

The following are just a few examples of different types of management reports:

Analytical reports

As the name implies, analytical reports provide an in-depth analysis of a specific area of concern within a business. It will typically involve an examination of current business strategies to understand their effectiveness.

Businesses will use various analytical techniques such as trend analysis, regression analysis, and scenario planning to explore different scenarios and potential outcomes of new strategies.

Analytical reports example

The below are all examples of analytical reports:

• Market research reports
• Customer segmentation analysis
• Financial trend analysis
• Competitor analysis
• Risk assessment reports

Internal reports

Internal reports are intended for use within a business, primarily to be presented to management employees. They help to improve communication, coordination, and decision-making.

Internal reports may cover a wide range of topics, tailored to the needs of management. These might include a review of operational performance, existing projects, and resource allocation.

Internal reports example

The below are all examples of analytical reports:

• Weekly/monthly sales reports
• Project status reports
• Department performance reports

Operational reports

Operational reports primarily focus on the operations of a business, the day-to-day activities and processes. They will show current operational performance, efficiency, and effectiveness.

Typically, these reports contain data and metrics related to production, inventory, sales, and other operational areas. They may also include performance targets, benchmarks, and market analysis.

Operational reports example

There are multiple reports that help to track and manage the operational aspects of a business:

• Production reports
• Inventory turnover reports
• Sales performance reports
• Quality control reports

How to create a management report

Creating a management report is dependent on the business and its requirements. There is no report template that fits the purpose for all companies. However, there are several key steps to follow to get the best out of your management report:

1. Identify the purpose of your report

Begin with determining the specific purpose of the report and the questions that it needs to answer. This is the stage to consider who will be the recipient of the report and what information they might need to make informed decisions.

Alongside the above, make sure to identify the key metrics and performance indicators (KPIs) that will be included in the report.

2. Gather and analyse your required data

Your next step is to collect the data needed to populate the report. This data will be acquired from a variety of sources depending on internal management – though we do recommend utilising a financial forecasting tool to assist. The data will need to be accurate and up to date to ensure you can progress towards your next objectives.

3. Design the layout of the report

Take the time to think about who this report will be presented to, and determine the layout and structure of the report. It will need to be tailored towards your own management team.

Make sure to include relevant sections, headings, and visuals. Consider using charts and graphs to present data in a clear and visually appealing format. Ensure that this report is easy to read and understand for all management teams.

We recommend ensuring you discuss reporting objectives, KPIs, existing metrics, and more. You can then make all recommendations based on your presentation.

4. Write the report

Once your structure and content is determined, begin to write the narrative sections of the report. This may include your executive summary, analysis, all findings, and ultimately, your recommendations going forwards. The insights from this will suggest your next steps.

The report can always be reviewed and amended to ensure accuracy and clarity. Ensuring high quality will improve the effectiveness. Your team members can help with providing feedback.

5. Finalize and present

Finalize the report and prepare it for distribution to all management team members. Consider whether or not you’d like to print this report, digitize it, or present it through a presentation.

From here, you can discuss your findings and recommendations. Drive the next step and create actions that will improve overall business performance!

Why are management reports important?

It’s very important to consider the importance of management reporting. Understanding how various factors might be impacting your business is essential in moving forwards and progressing your business.

Management reporting allows businesses to track and monitor key performance indicators (KPIs). It allows businesses to properly understand data and set objectives around overall performance, enabling them to take corrective action and stay on the right track.

In line with the above, it also allows decision makers within a business to make better informed decisions. Management can assess this report and identify areas for improvement with ease.

Alongside this, management reports allow improved transparency and accountability. They help with strategic planning, resource allocation, and monitoring risk. It is for these reasons that management reports are considered so essential in guiding your business and team along the right track to achieve sustainable growth and success.

What are the benefits of management reporting?

As an analytical tool, management reports are brilliant in assessing business performance, and there are many benefits to consider when creating such a report:

• By presenting key relevant information in your management report, you enable management teams to address challenges effectively and make informed decisions.
• Highlighting and understanding KPIs allows for management to assess, monitor, and alter performance goals.
• By monitoring key risk indicators (KRIs), management can better identify and mitigate risks to protect the business’ long-term viability.
• By analyzing trends in business data and performance, businesses can identify new opportunities and develop strategies for additional long-term goals.
• By analyzing the root causes of issues in your report and implementing corrective actions, businesses can drive process improvements and achieve higher levels of performance over time.

What makes a management report effective?

An effective management report can drive further success and improvement for your business, and it’s important to consider what is considered effective:

• Clear objectives: An effective management report should outline the purpose of the report, the questions it aims to answer, and the specific audience it targets.
• Relevant data and content: The report should include relevant information related to decision making, including key figures, metrics, trends, and insights. This data must be accurate.
• Clear presentation: The report should be well-organized and presented in a clear and concise manner.
• Clear visuals: Incorporating digestible visual elements such as charts, graphs, and tables can enhance the readability of the report.
• Actionable recommendations: The report should include actionable recommendations that address identified issues or opportunities.
• Positive feedback loop: An effective management report encourages ongoing communication and collaboration. It should provide opportunities for discussion, clarification, and follow-up actions.

Can Brixx help with management reporting?

Brixx is a financial forecasting and planning tool designed to help businesses with budgeting, forecasting, and financial analysis. While its primary focus is on financial planning, Brixx can also work well as a financial reporting software.

• Integrate your data from your primary sources to consolidate and generate comprehensive management reports.
  • Customize these reports to tailor them to your management report requirements. Define your own metrics.
  • Automate these to schedule regular reports.
• Visualize your data with an easy-to-read dashboard. Understand and identify trends and insights.
• Collaborate and share your Brixx plan with other team members, enabling easy communication in the reporting process.
• Plan for a multitude of scenarios and what-if analyses and see their impact on financial performance

Overall, by leveraging Brixx, businesses can streamline their management reporting processes, improve data analysis, and make more informed decisions to drive performance and achieve their strategic objectives. Get started with a free 7-day trial.