Management reporting and what it includes. Management reporting: types of reports and the procedure for their preparation Basic reports of management financial accounting

The article will touch upon the main issues related to management reporting. What the document is, why it is needed, and how to fill it out correctly - below.

Dear readers! The article talks about typical ways to resolve legal issues, but each case is individual. If you want to know how solve exactly your problem- contact a consultant:

APPLICATIONS AND CALLS ARE ACCEPTED 24/7 and 7 days a week.

It's fast and FOR FREE!

Legislation requires organizations to submit reports to regulatory authorities. This concerns financial statements; some enterprises also conduct management ones.

It is not necessary to compile them, but they must be attached to the accounting documentation. What is management reporting?

General points

Management reporting is necessary for making the right decisions, as it contains information about the state of affairs at the enterprise.

Problems that reporting solves:

• providing the necessary information;
• preparation of documentation necessary for regular reporting;
• forecast and analysis of the activities of the organization and its branches;
• approval of correct decisions based on truthful data;
• increasing financial discipline.

The management accounting and reporting system allows you to solve the following problems:

• to form a management that will be aimed at increasing the effectiveness of decisions made;
• evaluate the management of all aspects of financial activity and its results;
• make the costs of preparing and filing reports minimal;
• link analytics and accounting rules;
• create a basis for motivating employees.

If an organization is being restructured, reporting forms cannot be developed. Has the following characteristics:

Concepts

Management reporting	Documentation that includes information necessary to exercise control over the activities of the organization. Indicates the financial position of the enterprise
Consolidated reporting	Financial reporting of several interrelated organizations that are treated as one. The document characterizes the property and financial position of the group as of a certain date, which is the reporting date
Management reporting	A set of documentation within an organization containing figures showing aspects of activity. Is voluntary. The main goal is to provide the governing bodies of the enterprise with truthful information about the results of activities
Subsidiary	A society formed on the basis of another, which exercises control over it and makes decisions
Parent company	A company that has a large amount of capital from another company. Controls the activities of companies dependent on it through their shares
Consolidation	A type of legal formation, the purpose of which is to create a document (normative legal act) that would not have an impact on existing acts and would not change their essence
Limited liability company	A company that was created by one or more persons (both individuals and legal entities) and whose capital is divided into parts

Main types

Management reporting is divided into several types:

• complex;
• according to the final results;
• analytical.

A comprehensive report covers the activities of the enterprise, its branches and affiliates in full.

It is provided at a certain time - a report for the day, for the month, etc. Such a report displays the results of the organization’s activities as a whole and for each segment, as well as costs, debts, etc.

Reporting on final ratios can be provided at any time. Contains the most important data for the enterprise on the number of orders received for certain products.

Characterizes the degree of their implementation, whether there was a defect and in what quantity, what were the sales volumes and resources used.

The analytical type of reporting is prepared at the request of governing bodies. The report may contain information about the reasons for the increase in inventories, the number of irregular work, a drop or increase in sales.

Normative base

Regulatory acts that must be used when preparing management reporting:

Formation of management reporting for the organization

The reporting generation algorithm is as follows:

1. Find out from or him what information he needs to submit and with what frequency.
2. Conversation with an accountant to clarify details.
3. Creation of documentation that will highlight the indicators and their interpretation. The person responsible for reporting may prepare the reporting forms separately for each governing body.
4. Generating a report.

What does it include (forms)

Forms include, income and expense report,. The balance displays the numbers and their interpretation.

It is the basis for the formation of financial statements. It records the results of activities for a specific period of time.

Forms are developed based on the following principles:

Basic principles of formation

The main principles when compiling are:

• efficiency;
• reliability;
• consistency of coefficients;
• content;
• truthfulness.

The reporting procedure requires the following principles:

• rapidity;
• direction;
• concreteness;
• non-disclosure;
• neutrality.

Internal

Internal management reporting is the main part on which the management structure rests. It contains the main coefficients and basic information.

Compilation requirements:

• the information provided in the report must correspond to the purpose for which it is created;
• internal reports should not contain subjective opinions or biased assessments;
• documentation must be submitted within the time frame when a decision needs to be made;
• There should not be any unnecessary information. The smaller the report, the more quickly a decision is made and the content of the document is comprehended;
• the report must be compared with the plans;
• the document must reach a responsible management person who will not disclose the information.

Internal management reporting is used to provide personnel at any level with the necessary information.

Developing reports of this type is not easy; they must contain a flexible structure, understandability of data, and optimal frequency of presentation.

Each reporting form should contain the information that will be useful. Do not abuse or overload the document with numbers.

The most common examples of errors:

Internal reporting can be annual, quarterly, monthly, etc. It is necessary to provide the document when the decision is made. Frequency will not affect the adoption rate.

Comprehensive reporting	Includes information about the results of actions for a certain period of activity. It must be provided regularly and in a timely manner, since the report displays costs and profits, financial movements and other important indicators
Thematic	Which is provided as deviations of important coefficients occur. These include losses due to defects, planned indicators, sales volumes
Analytical reporting	It is issued when requested by the governing bodies of the organization. Contains data about the reasons why a particular result occurred

According to the level of management, reporting can be operational, current and consolidated. An operational report is prepared every month or every week.

Contains the data necessary to make a decision. The current report is issued every month or quarter. Includes profit information.

The summary can be compiled either once a month or once a year. Contains information about the most significant data that influences strategic decision making.

Based on the volume of data, internal reporting is divided into summaries, final reports and general reports. Summaries – brief information about individual odds over a short period of time, such as a day.

The final report is compiled every month and contains summarized information. General reporting is compiled for the enterprise as a whole.

Internal reporting can be presented in the form of tables, graphs or plain text. The most convenient form is a tabular one, since the report contains many digital indicators.

What does the bank’s management documentation allow?

Bank management documents include:

• non-cash payments;
• operational activities of the bank;
• documentation related to loans;
• control documents on labor costs;
• output documents;
• deposit documents;
• forms of documents used within the bank and others.

The listed documents make it possible to analyze activities and draw conclusions.

If consolidated

Consolidated financial statements include:

• balance;
• financial results report;
• financial flow reporting;

Such documentation includes reporting indicators of members of the consolidated group for the year. The bank prepares consolidated statements based on data received from group members.

In this case, one of the methods is used - full consolidation or participation in capital. Groups have different structures:

Consolidated financial statements are prepared by the bank for presentation to its shareholders.

The document must contain the following information:

• the nature of the relationship between subsidiaries and parent organizations;
• for what reasons does the investor who owns the majority of shares not exercise control over reporting;
• the date when the reporting period ends. The one for which reporting is prepared;
• restrictions that apply to the subsidiary (if any);
• situations where control over subsidiaries was lost.

The consolidated method involves collecting and processing a huge amount of data. Has the following stages:

• Preparation of reporting by all organizations that are members of the group.
• Making adjustments during consolidation (if necessary).
• Preparation of reports and provision.

Group characteristics:

• possession of the number of shares of a subsidiary created in the form of an LLC;
• exerting influence on the activities of the organization on the basis of a concluded agreement;
• the ability to appoint or recall a verification commission;
• participation in management bodies.

If at least one of the listed signs is present, then a group can form. Requirements for the preparation of consolidated financial statements:

The first reporting must be generated when a subsidiary is formed. Such reports must be published.

Filling example

For what purposes are internal management reporting used? What is the reporting procedure and what does it include? Where can I find a sample for filling out a management reporting form?

Let's imagine the situation. At one enterprise, the financial service prepares weekly management reports for management, which contain everything: basic financial indicators, company expenses, information on shipments and remaining goods in the warehouse, information on loan repayments, etc.

In another company, a young accountant deals with financial documents; no one prepares management reporting as such. So the director doesn't even know where the money goes and how things are going with loan payments.

In which company do you think management makes smarter and more effective decisions? Of course, in the one, you answer, where there is clear interaction between performers and management. Management reporting serves as just that. link.

About, how management reporting is prepared, and what problems it solves, I, Denis Kuderin, an expert on economic issues, will tell you in a new article.

Make yourself comfortable and read to the end - at the end you will find a review of companies that help organize management accounting at your enterprise, plus tips on how to distinguish professional performers from amateurs.

1. What is management reporting and what is it used for?

Enterprise management– a continuous process, the essence of which is influencing an object in order to stabilize, control or change it in accordance with business objectives. Another management function is the rational use of the company’s workforce and resources to increase profitability.

To maintain a business in an efficient and competitive state, managers must constantly make certain decisions. These decisions are based on current information about the affairs of the enterprise. This is exactly the information that management reporting (MA) provides to management.

– a company’s internal control tool and a way to assess its economic prospects.

Unlike financial statements, no one obliges you to prepare management reports . But managers need it to effectively manage their business. The MA contains information about all structural divisions of the enterprise.

It can be argued that a competent manager is able to evaluate economic indicators based on accounting records. This is partly true, but accounting does not reveal all the nuances of the enterprise.

From accounting reports It’s difficult to know which products are in high demand, and which one is the other way around. shows a more clear picture.

Example

Company "Siberian semi-finished products" expanded its product range last year. With the help of management reporting, which the executive director proposed to introduce at the enterprise, management found out that the products that are in greatest demand are “ Family dumplings" And " Country sausage" We decided to increase the production of these items.

The MA also showed that purchasing packaging materials from suppliers is less profitable than making them yourself. Director decided to open a new workshop for the production of our own packaging.

Reporting is needed by economical, far-sighted and prudent owners who want to make a profit not only by increasing production volumes, but also by increasing labor productivity, as well as reducing unnecessary expenses. This is an integral part of being literate.

Who is customer management reporting? TOP managers And line managers– production directors, financial directors, sales managers, etc.

To compile a document, various forms are used, most often tables, graphs, and diagrams.

The information should be:

• reliable– reflect real processes without any additions or manipulations;
• address– addressed to specific users, for example, the general director;
• confidential– there is no need for outsiders to know about the internal affairs of the company;
• operational– ready for use at the right time and containing up-to-date data;
• useful for making management decisions.

Where can I get data for reporting? From accounting programs, financial documents, accounting reports. To begin with, of course, you need to establish a functional system for transmitting information at the enterprise.

For example, consumables have gone into production from a warehouse - the responsible persons (storekeeper and workshop manager) must document this matter.

In a large enterprise, it will be difficult to cover all aspects of production, so those responsible for drawing up the MA must act according to a pre-developed plan.

- « Comrade Novoseltsev, is this your report? You need to deal with the matter seriously or not at all. Statistics is a science; it does not tolerate approximation. How can you use unverified data? Take it and remake it!”

From the film “Office Romance”

Novoseltsev with a report - a still from the film Office Romance

Now I will list the main tasks of the MA:

• providing management with reliable and up-to-date data regarding the financial and production activities of the company;
• forecast and analysis of the operation of the enterprise and its branches;
• increasing financial discipline;
• reduction of production costs;
• increased profits as a result of making economically feasible decisions.

The MA does not need to be sent to the Federal Tax Service or anywhere else. This is a document for internal needs. It allows managers or owners to be aware of the objective situation at the enterprise. The document reflects the main processes that occur or occurred within the company during the reporting period.

2. What does management reporting include - overview of the main points

Now about what is included in the UO. Unlike financial and tax accounting, which are strictly regulated by law, management reporting is prepared in free form and meets the needs of the management of a particular company and meets the objectives.

For this reason, there are many options for such documents. However, there are points that should be included in the report without fail, so that management can analyze the current economic situation in the company and objectively assess the prospects.

Point 1. Operating reports

Operating activities- This is the main work of the company aimed at making a profit. This includes the production of products, the provision of services and any other core activity through which the enterprise earns money.

This report includes the following data:

• on the production of goods;
• on the acquisition of inventory items;
• on the purchase of raw materials, consumables and components;
• on stocks of finished products in warehouses;
• about cash flow;
• about accounts receivable.

The operating instructions are a document that reflects the current state of affairs.

Point 2. Reports on investment activities

Investment- part of the company's financial activities. Even a small enterprise invests in the development and expansion of production.

The MA on investments reflects the following parameters:

• movement of fixed assets;
• movement of the company's intangible assets;
• long-term cash deposits;
• planned capital investments;
• data on the implementation of investment projects.

Point 3: Financial statements

Financial activities– these are short-term investments, attracting borrowed And joint stock capital, lending and cash management (enterprise cash desk). All these aspects are reflected in the financial LO.

Point 4. Reports on sales or services provided

Sales report compiled by the enterprise sales service for the head of the sales department, commercial and general directors. It shows the quantity of products sold and at what prices.

Sometimes additional items are included - shipment dynamics, information about inventories in warehouses, sales costs, information about accounts receivable.

Point 5. Procurement reports

IN procurement report includes information on the purchase of raw materials, consumables, equipment, tools and other production assets. A separate document of this kind is needed at large production facilities where a variety of material assets are used for work.

For clarity, let’s put the basic types of educational institutions in a table:

3. The procedure for preparing management reporting - 6 main stages

Management reports are prepared different ways. Several years ago I worked in a company where I participated in the preparation of reporting documents a whole staff of accountants and financial specialists.

The report was detailed and detailed, which allowed management to carry out comprehensive analytics and adjust the operation of the enterprise in a timely manner, if necessary.

In another company where I also worked, the report was handled by one accountant using 1C, and he entered all the data into the program manually. There was little sense in such a report.

To create a competent and useful report, use a ready-made algorithm. The scheme does not pretend to be the ultimate truth - when creating your own report, take into account the specifics of the enterprise and its scale.

Stage 1. Setting goals and objectives

First we need a clear understanding of the problems that need to be solved using management reporting. It is useful for the CEO of the company to have the necessary information at least every week . And if the enterprise is a time of change and the introduction of new technologies and methods, then more often.

The goals in each case are individual: control of income and expenses, analysis of product costs, assessment of the efficiency of departments, tracking the dynamics of receivables and payables.

The form in which the MA is provided to management is also important. It is more convenient to use tables and graphs than text files. The more detailed the documents, the better..

But remember - you cannot embrace the immensity. You need to be able to structure information by income and expense groups, by types of clients, by departments, sum up interim results.

The frequency of reporting is regulated by management itself. If the director requires a report to be prepared weekly, it will be produced weekly. The situation is similar with detailing.

Stage 2. Determining the circle of officials who need management reporting

This is a necessary stage for the effective organization of the process of preparing the MA. Determined to whom exactly and what kind of reporting provided.

It is also important not to forget about responsible for reporting. Often managers or leading specialists of the relevant departments are appointed responsible. They are responsible for both the content of reports and the timing of their preparation and submission.

Large companies also organize special units on the preparation of management reporting.

Stage 3. Determining the information that should be presented in management reporting

What information will be contained in the report depends on the purpose of compiling this document. As a rule, it includes the most significant data that reflects the real economic and financial situation at the enterprise.

It will be good if it is taken into account logical relationship of indicators for the convenience of the process of analyzing the UO and conclusions. Sometimes managers ask those who generate reports immediately formulate key conclusions .

Stage 4. Determining the possibility of using information generated in accounting systems

Assess what information we need for management purposes already contained in accounting information systems companies. This is about accounting, financial, tax and other accounting systems that have already been established and are successfully operating at the enterprise.

If this is so, then you can and should try to use it, which can significantly simplify the task and save you from "double work".

Reporting should be regular, clear and structured

Stage 5. Development of regulations for management reporting

Definitely needed reporting regulations – who will provide them, in what form and within what time frame. Document these agreements.

Let each head of the FRC (financial responsibility center) monitor the execution of the process.

Stage 6. Development of tools for collecting, generating and processing management reporting information

Instruct IT specialists to develop programs (or file templates) in which responsible persons will generate reports.

But don't forget about the main principles:

• the costs of automation must be recouped by the benefits of its use;
• a bad program - worse than a thoughtfully designed Excel spreadsheet system.

If the company does not have its own IT specialists, use the help of third-party companies. There is information about them in the next section.

- Lyudmila Prokofievna, you turned out to be amazingly insightful. You are just looking into the distance! I'm currently working on my report, and it's getting better and better right before my eyes!

I’m glad for you, Comrade Novoseltsev...

From the film “Office Romance”

4. Assistance in preparing management reporting – review of the TOP 3 service companies

Do you want to implement a management reporting system in your company, but have no idea where to start? Do you want to entrust this task to professional performers?

Expert review will help you choose reliable partners who will develop, implement and launch an effective management system in your company.

A multidisciplinary company that has been operating in the consulting services market for more than 20 years. The company's areas of interest include: management and tax consulting, setting up and automating accounting, developing budgeting systems and many other relevant services for business.

Specialists will develop effective management accounting for the customer’s company based on 1C software products. The client receives: debugging of business processes, consulting support at all stages of implementation of management reporting, a modern automated enterprise management system.

An experienced team of practitioners with extensive experience in building and debugging management accounting and budgeting systems. Professionals will set up accounting from scratch for small and medium-sized businesses, they will improve the system of financial and management control at large enterprises.

If necessary, specialists from the Uchet Chetko company train your employees the basics of working with automated systems, organize work with documents, optimize enterprise costs, and develop unique programs for individual use.

3) GBCS

The GBCS consulting company has 28 qualified experts in the field of management accounting automation. Specialists will create an effective accounting system, establish budgeting at the client’s site, improve the financial situation in production, and reduce costs.

Don’t waste time developing management accounting on your own - trust those who know how to do it quickly and professionally. On the company's account - more than 50 ready-made projects. Developments from GBCS have already helped clients earn more than 60,000,000 rubles in net profit.

5. How to choose a management reporting company – 3 signs that you are working with professionals

Selecting truly competent performers is always difficult.

Management reports, their purpose

Distinctive features of management reporting from conventional accounting

Financial analysis and planning based on management reports

It was always necessary to generate management reports; the term “managerial” was simply not applied to such internal reports.

Management reporting is a set of internal reports of an enterprise that are generated on a voluntary basis. The main purpose of their compilation is to obtain reliable information about the state of affairs of the enterprise on a specific date, for example, to provide management or owners of the enterprise.

The legislation of the Russian Federation does not provide for unified forms of management reporting due to the voluntariness of its formation, therefore each enterprise has the right to independently develop reporting forms. As a rule, the usual forms of financial statements are taken as a basis.

The main difference between accounting reporting and management reporting is the recipient, the end user. Mandatory accounting reporting is necessary for managers - to analyze the activities of the enterprise for the past reporting period, for auditors and the tax service - to verify the correctness of the reflection of the facts of activity.

Voluntary management reporting is necessary exclusively for the head of the enterprise, his deputies or other authorized persons (management personnel and managers, for example), as well as for the owners of the enterprise to analyze the operation of the enterprise and plan further activities in the short or long term.

In addition, accounting reports are compiled for the enterprise as a whole, and management reporting, if necessary, is presented in the context of structural divisions, separate divisions, subsidiaries, etc. Such detail allows us to identify problem areas.

Note!

Experts in the preparation of management reporting note that you should not overload reports with information, otherwise the document will be difficult to perceive.

The frequency and composition of management reporting depends solely on the requirements of end users (for example, management). Reports can be generated daily, weekly, monthly, quarterly and annually.

As a rule, management reports include planned and actual indicators. This allows for plan-fact analysis and calculation of relative coefficients characterizing the efficiency of financial and economic activities.

This is not a complete list of reports that can be included in management reporting. Let us repeat that the purpose and content of reports directly depend on the requirements of the recipients. Therefore, the following secondary management reports can be generated:

• on the actual cost of production in comparison with planned indicators;
• on the execution of the production plan;
• execution of the marketing plan;
• for work in progress;
• on stocks of raw materials and finished products;
• about accounts receivable;
• about accounts payable, etc.

Income statement

This is perhaps the most important management report. It reflects information about the actual profit/loss of the enterprise.

The form of the financial results report (form No. 2) of the financial statements was approved by Order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n (as amended on April 6, 2015) “On the forms of financial statements of organizations” and has a fairly detailed form.

In a management report, it is permissible to both group some lines of the report and, conversely, provide a more detailed breakdown (primarily this concerns the company’s expenses).

The final recipients of the document can also request detailed information on revenue (for example, broken down by type of product).

A fragment of the management report on financial results is in table. 1.

Table 1

Fragment of the management report on financial results, thousand rubles.

Name	Meaning
Cost of sales
Gross profit (loss)
Profit (loss) from sales
Percentage to be paid
other expenses
Current income tax
Net income (loss)

The main thing we see from this report is the positive financial result of the enterprise’s activities: revenue exceeds the enterprise’s costs that it incurred to produce and sell products.

However, every company constantly strives to increase profits. To do this, as a rule:

• increase the selling price per unit of production (which, as a consequence, increases the amount of revenue);
• reduce the cost of sales (with a constant amount of revenue, this increases profit, including profit per unit of production).

When planning financial results based on management reporting, actual and planned sales volumes are taken into account. Such planning is quite conditional, since the cost of sales includes both fixed and variable costs, and the former practically do not change with an increase or decrease in sales volume.

We will carry out preliminary calculations to draw up a planned report on financial results.

We know that revenue in the amount of 68,074 thousand rubles. received from sales of 257 units. products at a price of RUB 264,880.00. per unit (the analyzed enterprise produces one type of product).

In the next reporting period, it is planned to sell 294 units.

Thus, the planned revenue will be 77,875 thousand rubles. (RUB 264,880.00 × 294 pcs.) at a cost of RUB 64,767 thousand. (RUB 220,295.70 × 294 pcs.).

Forecast report on financial results - in table. 2.

table 2

Forecast report on financial results, thousand rubles.

Name	Meaning
Cost of sales
Gross profit (loss)
Profit (loss) from sales
Percentage to be paid
other expenses
Profit (loss) before tax
Current income tax
Net income (loss)

With such planning, profitability indicators (products, enterprise, sales, etc.) remain unchanged, because forecasting takes into account only fluctuations in sales volume.

Let's calculate the main profitability indicators that characterize the profitability of the enterprise and the economic feasibility of its activities.

Profitability of core activities (R 1) is the ratio of profit before tax to revenue from sales of products. This ratio shows what part profit is in revenue.

In our case R 1 = 10,078 / 68,074 × 100% = 11,728 / 77,875 × 100% = 15%.

The higher the profit margin in relation to revenue, the more profitable the enterprise is considered.

Product profitability (R 2) is the ratio of net profit to total cost. This indicator is very important for analyzing the efficiency of activities: it shows how profitable the products produced are, how much profit the enterprise received from the total costs of its production.

In our case, R2 = 8062 / 56,616 × 100% = 9382 / 64,767 × 100% = 15%.

For your information

At the stage of analyzing management reporting and planning activities in the short or long term, it is possible to identify problem areas, such as high enterprise costs for production, low revenue, etc.

Based on the results of the analysis, they formulate a policy for the further development of the enterprise, make decisions, for example, on abandoning the production of any type of product, on expanding the sales market, optimizing costs, increasing/lowering the retail price, etc.

Managerial balance

The form of the management balance sheet is not approved at the legislative level, so we recommend using the form of the usual balance sheet.

For your information

Depending on the wishes of the end user, you can remove unnecessary balance sheet lines, group individual items or, conversely, describe them in detail (for example, borrowed funds, if their share in the balance sheet currency is significant).

An example of a managerial balance sheet is in table. 3.

Table 3

Management balance, thousand rubles.

Assets	Meaning
I. Non-current assets
Intangible assets
Fixed assets
Total for Section I
II. Current assets
Accounts receivable
Total for Section II
BALANCE
PASSIVE
III. Capital and reserves
Authorized capital
Reserve capital
Total for Section III
Total for Section IV
Borrowed funds
Accounts payable
Total for Section V
BALANCE

We made the usual form of the balance sheet simpler - we removed items with zero values, with the exception of section IV, in order to focus on the fact that the company has no long-term liabilities.

Based on the management balance sheet, the main indicators of the financial condition of the enterprise are calculated. At this stage, a comprehensive analysis of reporting is not needed - it is enough to focus on the problem areas of the enterprise:

Own funds ratio(To OSS) is calculated as the ratio of the difference between equity capital and non-current assets to current assets:

TO OSS = (Total for Section III - Total for Section I) / Total for Section II,

in our example, K OSS = (11,042 - 4,806) / 40,875 = 0.15.

The value of the indicator indicates an unsatisfactory balance sheet structure and a high probability of insolvency of the enterprise as a whole.

An indicator value greater than 0.5 indicates the good financial condition of the enterprise and its ability to pursue an independent financial policy.

Debt ratio(Кз) is calculated as the ratio of the enterprise’s total debts to its own funds:

To s = (Total for Section IV + Total for Section V) / Total for Section III;

at the analyzed enterprise Kz = 34,639 / 11,042 = 3.14.

The standard value of the indicator is below 1. Otherwise, the amount of borrowed funds exceeds equity.

Based on the results obtained, it is possible to predict the balance sheet model for the next reporting period, for example, using the percentage of sales method.

To compile it, you need the following data:

• about actual sales for the reporting period (for our example - 257 units), for which the management balance sheet was compiled;
• about the planned sales volume in the next period (for our example - 294 units).

The coefficient of change in sales volume (K change) is calculated as follows:

To change = Q 2 / Q 1 ,

Where Q 1 - volume of product sales for the previous period, pcs.;

Q 2 - volume of product sales for the planned period, pcs.,

in our case, Kmeas = 294 / 257 = 1.144.

The amount of net profit according to the forecast (see Table 2) is 9382 thousand rubles. provided that the company will not distribute profits as dividends due to the high level of short-term liabilities that need to be repaid.

Net profit can be used, for example, to increase retained earnings (RUB 5,486 thousand) and to pay off liabilities (RUB 3,896 thousand).

Based on this methodology, we will draw up a forecast balance (Table 4).

Table 4

Forecast balance, thousand rubles.

Assets	Meaning
I. Non-current assets
Intangible assets
Fixed assets
Total for Section I
II. Current assets
Accounts receivable
Cash and cash equivalents
Total for Section II
BALANCE
PASSIVE
III. Capital and reserves
Authorized capital
Reserve capital
Retained earnings (uncovered loss)
Total for Section III
IV. long term duties
Total for Section IV
V. Current liabilities
Borrowed funds
Accounts payable
Total for Section V
BALANCE

Based on the proposed changes, we will calculate the coefficients:

K OSS = (16,528 - 5,498) / 46,761 = 0.24;

Kz = 35,731 / 16,528 = 2.16.

So, thanks to the measures formed on the basis of management reporting, it was possible to increase the enterprise’s independence from borrowed sources of financing and improve the ratio of equity and borrowed funds.

To consolidate the effect, it is worth analyzing the profitability of the enterprise and finding an opportunity to increase the level of profit to strengthen financial independence.

Income and Expense Report

The income and expense report allows you to analyze the volume of cash flows, revenue from sales of products and costs of their production and sale, and calculate coefficients characterizing the business activity and financial stability of the enterprise.

First, the enterprise prepares a planning document on future income and expenses, and based on it, an actual management report. On its basis, planned and actual indicators are analyzed.

An example of an income and expense report is presented in table. 5.

Table 5

Management report on income and expenses

No.	Name of income (expenses)	Plan	Fact
	Income	18 560,00	16 704,00
	Advance to Beta LLC
	Advance payment to Gamma LLC
	Advance to Omega LLC
	Final settlement of Beta LLC
	Final settlement of Gamma LLC
	Final settlement of Omega LLC
	Expenses
	Payment of wages + insurance premiums
	Advance payment to supplier Norman LLC
	Advance payment to supplier Dixit LLC
	Final settlement with the supplier Norman LLC
	Final settlement with the supplier Dixit LLC
	Rent
	Public utilities
	Telephone and Internet expenses
	Depreciation deductions

When presenting management reports to management, you must be prepared to answer questions. For example, if there is no income - “why?” In this case, it is necessary to find out why the funds were not received - there were no shipments, the customer delayed payment, etc.

If the expense portion of the report has changed significantly, you may have to prepare a more detailed report for certain items.

An analysis of the income and expense report will allow you to understand in advance that in a certain period there will not be enough money in the account, for example, for advance payments to suppliers. Then management will have the opportunity to quickly respond to the situation, for example, agree to postpone the terms of the advance.

Naturally, such reports are constantly adjusted depending on changes in planned payments.

Cash flow statement

The cash flow statement (CFS) contains information about cash flows (according to the current account and/or cash register), reflecting both planned and actual receipts and expenditures of funds.

Its structure is similar to a cash flow budget (CFB); its distinctive feature is the presence of actual indicators characterizing budget execution.

ODDS allows you to assess the financial capabilities of an enterprise, monitor the availability of funds in the account and in the cash register of the enterprise, balance the receipts and expenditures of funds, and therefore control the liquidity and solvency of the enterprise.

ODDS, like BDDS, includes cash flows from current investment and financial transactions.

Current cash flows— these are revenues from the sale of products, rental payments, expenses for paying for the services of suppliers and contractors, wages for employees of the enterprise, tax payments, etc.

Investment cash flows- these are transactions related to the acquisition, creation or disposal of non-current assets, for example, costs of development and technological work, loans, payments in connection with the acquisition of shares, etc.

To cash flows from financial transactions includes proceeds from operations related to attracting financing (cash deposits, payments in connection with the repurchase of shares, payment of dividends, repayment of bills, etc.).

In order to effectively plan the expenditure and receipt of funds, it is necessary to conduct a plan-fact analysis, especially in a crisis situation, when payment discipline worsens and the company may not have enough money to make payments.

Management ODDS increases the efficiency of planning and budgeting in general.

An example of a cash flow statement is presented in table. 6.

Table 6

Cash flow statement for July 2017, thousand rubles.

No.	Index	Plan	Fact
	Cash balance at the beginning of the month	12 200,00	12 200,00
	Cash receipts
	Income from core activities
	Advances from customers
	Gamma LLC, agreement No. 212/T dated June 28, 2017
	Revenue from sales of goods (works and services)
	Alpha LLC, agreement No. 12 dated January 30, 2017
	Gamma LLC, agreement No. 212/T dated 04/28/2017
	Beta LLC, agreement No. 17 dated March 24, 2017
	Omega LLC, agreement No. 1 dated December 23, 2016
	Norma LLC, agreement No. 7 dated February 16, 2017
	Income from financial activities
	Receipts from investment activities
	Spending money
	Expenses for core activities
	Settlements with suppliers
	Calculations for components
2.1.1.1.1	Product No. 1
	Plant named after I. I. Ivanova
	JSC "Alfa"
	LLC "Diagonal"
	JSC "Yaroslavl"
	Other suppliers
2.1.1.1.2	Product No. 2
	Plant named after I. I. Ivanova
	JSC "Alfa"
	LLC "Diagonal"
	Other suppliers
	Salary
	Division No. 1 (Moscow)
	Insurance premiums
	Division No. 1 (Moscow)
	Division No. 2 (St. Petersburg)
	General running costs
	Division No. 1 (Moscow)
	Communication services
	Wages (account 26)
	Insurance premiums (account 26)
	Fare
	other expenses
	Communication services
	Wages (account 26)
	Insurance premiums (account 26)
	Consumables, office equipment
	Transport maintenance costs
	other expenses
	General production expenses
	Division No. 1 (Moscow)
	Wages (account 25)
	Insurance premiums (account 25)
	Tools, materials for industrial purposes
	other expenses
	Division No. 2 (St. Petersburg)
	Wages (account 25)
	Insurance premiums (account 25)
	other expenses
	Taxes
	Income tax
	Property tax
	Expenses from financial activities
	Expenses for investment activities
	Cash flow from core activities
	Cash flow from financial activities
	Cash flow from investment activities
	Cash surplus/shortage at the end of the month
	Cash balance at the end of the month

The first thing a manager or other end user of the ODDS will pay attention to is the negative value of the cash flow indicator.

For your information

Cash flow is a calculated indicator for each type of cash flow (current, financial and investment activities), representing the difference between cash receipts and expenditures.

A negative cash flow value indicates that cash receipts are lower than expenditures. And if the business had no cash balance from the previous month, it would not be able to make payments.

In the example, ODDS is presented broken down by manufactured products and separate divisions (Moscow and St. Petersburg). Management may require a more detailed breakdown, for example, if plans differ significantly from actuals.

Based on the cash flow, for example, for a month, cash flows for the next month are predicted, taking into account expected receipts.

Analysis of actual cash expenditures for a month allows you to classify expenses from the point of view of consistency and commitment, to form a certain “constant”, i.e., the amount of cash expenditure that is necessary monthly.

Based on the payment registers and payment calendars in terms of receipts of advances and final payments from customers, the revenue part of the ODDS is formed.

Such cash flow planning ensures efficient cash flow management.

Note!

Plan-actual analysis of the cash balance allows you to set a limit on the cash balance at the end of the month in order to ensure the solvency of the enterprise at the beginning of the next reporting month and in the event of insolvency of counterparties.

Report on the actual cost of production

One of the main tasks of each enterprise is to form a market price such that it covers the costs of producing the products sold, while being competitive, consistent with the quality of the products and ensuring market demand.

After a market or contract fixed price has been formed, it is necessary to try to maintain the cost - if the cost exceeds the price, the enterprise will not make a profit. You can control the situation with the help of management report on the actual cost of production(Table 7).

Table 7

Report on the actual cost of production, rub.

No.	Costing item	Plan	Fact	Changes, +/-
	Material costs
	Insurance premiums
	General production expenses
	General running costs
	Non-production expenses
	Full cost
	Price excluding VAT

This report reflects deviations of planned costing indicators from actual ones. And if they are significant, additional analysis is needed to determine the reasons.

As a rule, at this stage of compiling management reporting, they also establish a group of costs that have the largest share in the cost structure and, on the basis of this, formulate a cost reduction policy to increase product profitability. For example, in order to reduce material costs, they renegotiate contracts with suppliers on more favorable terms or look for new ones; in order to reduce the wage fund, they reduce the number of workers, attract third-party organizations to carry out work, etc.

Taking into account measures to optimize the cost structure, an updated structure is planned for the next reporting period.

Let's consider an example of drawing up a planned calculation of the cost of production, taking into account the growth in volumes while maintaining general business expenses (as a constant component of the cost structure, regardless of fluctuations in volume) at the same level (Table 8).

Actual general business expenses per unit of production (see Table 7) - 41,642.70 rubles. with a sales volume of 257 units. products in the reporting period. Consequently, the total amount of general business expenses is RUB 10,702,173.90. (RUB 41,642.70 × 257 pcs.).

The planned sales volume for the next reporting period is 294 units. Let us divide the total amount of general business expenses (RUB 10,702,173.90) by the planned volume, and we obtain specific general business expenses per unit of production (RUB 36,401.95).

The remaining cost items are accepted for the planning period unchanged according to the actual data of the cost report.

Table 8

Planning the cost structure taking into account the proposed measures, rub.

No.	Name of calculation items	Fact	Plan	Changes, +/-
	Material costs
	Labor costs for key production workers
	Insurance premiums
	General production expenses
	General running costs
	Production cost
	Non-production expenses
	Full cost
	Price excluding VAT

We left unchanged all cost items included in the cost price, with the exception of general business expenses, which conditionally do not change depending on the growth of sales volumes.

Thanks to optimization, the planned specific profit per unit of production, while maintaining the retail price at the same level, will be increased by 5,240.75 rubles, by the total forecast sales volume - 1,540,780.50 rubles.

If no measures are planned to optimize costs, the planned cost structure, as a rule, includes actual data for the previous period.

Accounts receivable and payable report

The report on receivables and payables can be combined into one management document or divided into two independent documents. It allows you to assess the solvency of an enterprise and track debt turnover using relative ratios.

The very fact of the formation of receivables and payables is inevitable due to the temporary gap between payments and the transfer of finished products.

For your information

Accounts receivable are funds owed to the company by debtors; Accounts payable are funds that a company owes to its creditors.

A report on accounts receivable and payable is compiled as of a specific date, and the final recipient sees information about the status of settlements with counterparties and can quickly monitor the fulfillment of obligations.

Example of managerial report on receivables and payables of the enterprise- in table. 9.

Table 9

Report on receivables and payables as of July 21, 2017

No.	Debtors/ Creditors	Amount, rub.	Shipment		Payment made (advance payment)		Amount of debt as of July 21, 2017
			date	Amount, rub.	date	Amount, rub.
	Debtors
	Beta LLC
	Creditors
	LLC "Norman"

Analyzing the report data, the manager will see that on 06/09/2017 the company advanced 80% to Norman LLC (RUB 880,000.00). Products were shipped in full on June 15, 2017. But as of July 21, 2017, the company had not yet finally paid off its debt in the amount of RUB 220,000.00.

At the same time, Beta LLC made an advance (50%) in the amount of 5,500.00 thousand rubles, the products were shipped in full on June 23, 2017. But the company has not received the final payment of 50%.

As a rule, contracts with counterparties specify the terms of delivery and the time interval between delivery and final payment (for example, final payment is made within five working days from the date of acceptance by the buyer of the supplied products). For violation of payment deadlines, sanctions are expected (for example, a penalty in the amount of 0.1% of the amount of the delayed payment for each day of delay).

Therefore, in the event of claims from creditors, the company will be forced not only to make a final settlement, but also to pay penalties, and these are additional unforeseen costs.

Other management reports

Management report on the execution of the production plan

Contains planned and actual indicators. At the request of the final recipient, details are provided by workshop.

Ideally, these types of reports should be generated monthly. This will allow you to monitor the implementation of the annual production program and see the overall production picture.

Let us also draw attention to the fact that, as a rule, bonuses for production workers directly depend on the implementation of plans. Therefore, it is also possible to provide forms of an explanatory note in case of non-fulfillment of the production plan, which should be drawn up by shop managers or other authorized persons of the enterprise, making sure to indicate the reasons for the missed deadlines (for example, identification of additional faults, lack of necessary materials in the warehouse to complete production, etc.).

Management report on the execution of the marketing plan

The marketing plan (forecast of sales volumes), as a rule, is drawn up by the marketing department.

The report on the execution of the marketing plan reflects planned and actual indicators. Fluctuations of plan-actual values ​​within 10% are considered acceptable. Otherwise, it is necessary to adjust the plan taking into account the identified deviations.

In addition, it is necessary to analyze the reasons for deviations. Perhaps a competitor has appeared on the market with lower prices, buyers are not able to purchase goods at the offered prices, etc.

A management report on the execution of the marketing plan allows you to “keep your finger on the pulse” regarding fluctuations in the external environment and quickly respond to changes:

• monitor the actions of competitors (including potential ones);
• increase or maintain the competitiveness of the enterprise;
• monitor the demand for products and the solvency of buyers.

Management report on work in progress

Work in progress (WIP) is products that have not completed the entire production cycle. The share of costs for work in progress in the total costs of an enterprise can be quite significant.

As a rule, the management report for work in progress is detailed - all costs included in the cost are indicated (material costs, labor costs, overhead costs, etc.), the percentage of work completed and the expenditure of funds according to the standard (for example, materials were spent in the amount of 1000.00 rubles ., and the standard for finished products is 2000.00 rubles, therefore, the percentage of expenditure is 50).

The report may also include data on the labor intensity of the work.

Report on stocks of raw materials and materials

Stocks of raw materials and supplies must ensure the uninterrupted production process.

Suppliers often offer discounts when purchasing large quantities of goods, raw materials, and components. But businesses should remember that the costs of maintaining and storing these inventory items may exceed the benefit received from the discount. At the same time, by purchasing large quantities, you can save on transportation costs.

As mentioned earlier, one of the reasons for failure to meet the production plan may be a lack of materials in the warehouse. Therefore, a report on inventories of raw materials and supplies must be generated in accordance with the production plan.

This report is usually generated by the supply structural divisions of the enterprise (materials and technical supply department, material support service, etc.).

When planning inventories of raw materials and supplies, it is necessary to take into account production plan data (usually annual) and standards for the consumption of raw materials and materials per unit of production. You should also provide an insurance stock of materials in case of changes in the external environment (increasing demand, increasing the delivery time of materials, increasing the cost of inventory, etc.).

The management report on inventories of raw materials and supplies should also reflect actual indicators linked to the production plan.

Finished goods inventory report

It is necessary to create stocks of finished products to ensure the uninterrupted production process. But even here there are pitfalls: an increase in inventories of finished products also increases the cost of storing them. And in the event of a decline in demand, these finished products may not be in demand at all. The situation will only get worse if the product is perishable and has a certain expiration date.

The enterprise should establish such an optimal volume of finished product inventories that will meet the needs of consumers.

The report includes planned and actual indicators. Sometimes managers require additional information - the planned volume of production and sales, so that all movements of finished products are presented in one management report.

In addition, similar to the report on inventories of raw materials and materials, here you also need to take into account the safety stock in case of defects in production, unforeseen and force majeure circumstances, as well as in case of deviations of the sales volume forecast from actual indicators.

The main purpose of the formation of management reporting is to satisfy the information needs of management within the company by providing indicators in physical and monetary form, thanks to which it is possible to evaluate, control, plan and predict the activities of its divisions.

The preparation of such reports is carried out on a voluntary basis. It does not need to be sent to control authorities.

Management reporting - what it includes

In the structure of management reporting relating to the positions of general. director and his deputies, the following information may be recorded:

• Cost of manufactured products;
• Characteristics of the unfinished product manufacturing process;
• Volumes of production of goods sent to the warehouse;
• Volumes of materials and semi-finished products that are used in the manufacture of goods.

Generation of management reporting

Management reporting is generated in the following order:

1. Clarification from the gene. director, as well as his deputies, what information he needs to submit and with what frequency.
2. Ask the company's accountant for basic details.
3. Preparation of documentation that will reflect the main performance indicators. The employee responsible for reporting can generate such documentation separately for each governing body.
4. Direct report preparation.

Preparation of management reporting

The following requirements apply to the preparation of management reporting:

• The information contained in the report must be fully consistent with the purpose for which the report is being prepared;
• The report should not contain biased opinions and subjective assessments;
• The report must be compared with the plans;
• The report should not contain unnecessary information - the smaller it is, the easier it is to understand its content.

Management reporting - example

Here is an example of the structure of management reporting:

Composition of reporting	Main users of reporting
Report on the financial results of the company (master reports)
Cash flow report	Company management and Budget Committee
Report on profits and losses incurred
Forecast (managerial) balance
Management reports on financial results of the company
Analysis of the composition, structure and changes in the company’s income and costs, as well as assessing their relationship	Company management and shareholders
Analysis of changes in profit indicators
Cost-benefit analysis
Reporting on the execution of operational budgets for various purposes
Accounts receivable report	Manager of the sales department, accounting department and financial department
Accounts payable report	Manager of the Purchasing Department, Finance Department and Accounting Department
Material procurement report	Managers of the production and supply departments
Report on sales of manufactured products	Sales Department Manager
Report on available stocks of materials and finished goods	Managers of the sales department and supply department, head. warehouse
Report on existing work in progress	Chief engineer, production and sales department managers

Management reporting is a document that reflects the main processes that were carried out by the enterprise. Moreover, each organization has the right to independently determine the specific constituent elements of such a document. Mainly, reporting is oriented towards its users, and the content depends on their requirements and what interests them.

However, as with the preparation of any document in an enterprise, there are basic principles on which management reporting is based. First of all, it must meet the principle of simplicity. You should not overload the document with unnecessary information that is unnecessary for a particular user; you should include only important indicators. In addition, its size should be clearly defined, for example, one A3. This will also help you choose the most interesting and informative facts. But the main thing is that management reporting should be subject to the principle of efficiency, that is, its content should allow the user to take effective measures to improve the organization’s activities. Simply put, the information provided must be timely.

Regular preparation of such a document will allow the manager to be confident in the effectiveness of the further functioning of the company, since the staff will act in accordance with the developed instructions. In addition, the specialist is required to complete all work to complete the report within the prescribed period. At the same time, all information should be understandable to the manager of the specific level for which it is intended. Correctly executed and well-written management reporting fully reflects the activities of the enterprise and does not provoke the emergence of additional questions.

Since the management personnel of the enterprise can themselves determine the content of this document, the form of its presentation is also chosen at their own discretion. Conventionally, there are three ways to display information: graphical, textual and in table form. As a rule, the specialist relies on the user. For example, for an accountant, a tabular report will be the most convenient and understandable, and all amendments and explanations can be provided in the form of a text note. While it is easier for an investor or an employee of an analytical department to assess the state of affairs using charts.

Separately, I would like to talk about the timing of reporting, since this factor determines its relevance, and, consequently, the timeliness of decisions made. So, a division into short- and medium-term reporting is usually used, and there is also periodic reporting. The latter involves displaying indicators that make it possible to develop specific measures for the long term, that is, to determine the strategic goals of the company.

The document that most fully reflects the dynamism of the functioning of an enterprise is considered to be short-term management reporting. An example of this appears in the form of daily and weekly collections of indicators, on the basis of which specific activities are developed for the next period. The main users at this level are considered middle managers.

Medium-term management reporting is prepared monthly. It contains not only indicators for the past period, but also forecast values ​​for future activities. It is provided mainly to the management team, since they are the ones who can decide on the need to introduce some adjustments to the document. Such a document can provide significant assistance to the company and definitely has a positive effect on the situation. After all, managers and executives see what to expect from the future period while maintaining their previous positions.