What is management reporting?
Management reports keep internal stakeholders "in the know" of company activities. They're among the internal reports managers and senior executives use to run the organization, make business decisions, and monitor progress.
Management reports help leadership monitor their department. Employees submit reports to their managers, who then use those reports to inform executive management of progress and make strategic decisions.
Management reports can range in content and breadth. Often, management reports contain financial and operational information on a small segment of the business and can serve as a form of business intelligence. Because they contain proprietary information, management reports are confidential and for internal use only. They do not follow GAAP, IFRS, or any fixed format or template. Unlike regulatory reports, there are no external data specifications, deadlines or imposed timeframes other than those management has decided on internally.
Who creates management reports?
Management reports come from every department: marketing, customer service, IT, finance, sales, and operations.
The goal of management reporting is to:
- Measure and monitor specific performance metrics and KPIs
- Understand the status and health of an objective and determine next steps
- Establish benchmarks and goals
- Ensure better communication between stakeholders, colleagues, and executives
- Guide your next steps
- Force you to have an action plan
- Monitor performance frequently