Main reports of management accounting. Management reporting: types of reports and the procedure for their preparation

All businesses are required by law to maintain accounting records and prepare reports. However, the standard financial statements do not contain all the information necessary to effective management business. Therefore, at most enterprises, in addition to accounting, management reporting is also prepared. Let's consider how the preparation of management reporting and its analysis is carried out.

The principles on which the formation of management reporting is based

The main difference between management reporting and accounting is its focus on the needs of internal users. The preparation of management reporting is inextricably linked with the budgeting process. In essence, this is one and the same process, and internal management reporting is used for purposes primarily related to monitoring the execution of budgets.

The basics of budgeting and management reporting are based on the following principles :

1. Timeliness - All information must be collected and provided in a timely manner necessary to ensure effective management.
2. Sufficiency - information should be complete, but not redundant.
3. Objectivity - the data must correspond to the real state of the enterprise.
4. Comparability - the ability to objectively compare planned figures with actual figures, as well as indicators for different reporting periods.
5. Confidentiality - information should be provided to users in accordance with their job responsibilities.
6. Economic feasibility - the cost of collecting and processing information should not exceed the economic benefits from its use.

The analysis of management reporting is carried out according to the same principles that are used for accounting. The structure of the balance sheet, the composition of costs is analyzed, a comparison is made with the plan and with previous periods, various relative indicators are determined - profitability, liquidity, etc.

The essential difference here is the frequency. Financial statements are prepared and analyzed on a quarterly basis, management statements - much more often. Typically, the main management reports are prepared monthly. But for a number of indicators (for example, the volume of output, sales, receipt of money) information can be provided even more often - ten days, weekly, and even daily.

Consequently, there are much more opportunities for operational analysis in this case. This allows the management of the company to react “in real time” to changing market conditions.

Management reporting forms

Drawing up management reporting should provide its users with complete information about all aspects of the enterprise. For this purpose, the following main forms are included in the management reporting:

1. Management balance. In general, it usually repeats the structure of the accounting. Differences can be in the assessment of the value of certain groups of assets or liabilities. For example, for management accounting other methods of depreciation may be applied, in which case the value of fixed assets and intangible assets will differ.
2. Income statement. The form of the report here also usually resembles an accounting analogue. However, the indicators themselves may differ significantly, since distribution of income and expenses by items in management accounting may not correspond to the principles adopted in accounting.
3. Cash flow statement. This form answers a favorite question of many managers: "Why is there profit on the report, but there is no money in the account?" This report shows the structure of cash inflows and outflows. Usually, cash flows are considered separately for main, investing and financing activities.

Thus, the report becomes "voluminous", the results of the enterprise are considered from different sides, for each of which a separate form of management reporting is "responsible". An example of how to fill in the statements of financial results and cash flows is given below.

Management reports, their purpose

Distinctive features of management reporting from the usual accounting

Financial analysis and planning based on management reports

It was always necessary to generate management reports, it is just that the term "management" was not applied to such internal reports.

Management reportingIs a set of internal reports of the enterprise, which are formed on a voluntary basis. The main purpose of compiling them is to obtain reliable information about the state of affairs of the enterprise at a specific date, for example, for presentation to the management or owners of the enterprise.

Unified forms of management reporting are not provided for by the legislation of the Russian Federation 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 accounting statements are taken as a basis.

The main difference between accounting and management is in the recipient, the end user. Mandatory financial statements are 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 required 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, financial statements are prepared as a whole for the enterprise, and management reporting, if necessary, is presented in the context of structural divisions, separate divisions, subsidiaries and so on. Such detailing allows you to identify problem areas.

Note!

Experts in the preparation of management reporting note that it is not worth overloading reports with information, otherwise the document will be difficult to perceive.

The frequency and composition of management reports depend solely on the requirements of end users (eg management). Reports can be produced daily, weekly, monthly, quarterly and annually.

As a rule, management reports include planned and actual indicators. This allows you to conduct a plan-fact analysis and calculate the relative coefficients characterizing the efficiency of financial and economic activity.

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

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

Income statement

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

The form of the report on financial results (form No. 2) of the financial statements was approved by the Order of the Ministry of Finance of Russia dated 02.07.2010 No. 66n (as amended on 06.04.2015) "On the forms of financial statements of organizations" and has a fairly detailed form.

In the management report, it is permissible both to group some lines of the report, and, conversely, to give a more detailed explanation (first of all, this concerns the expenses of the enterprise).

The final recipients of the document can also request a breakdown by revenue (for example, by type of product).

A fragment of the management report on financial results - in table. one.

Table 1

Fragment of the management report on financial results, thousand rubles

Name	Value
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 that we see from this report is the positive financial result of the enterprise's activities: the revenue exceeds the costs of the enterprise, which it incurred for the production and sale of products.

However, every company is constantly striving to increase profits. For this, as a rule:

• increase the selling price of a unit of production (which, as a result, 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, the actual and planned sales volumes are taken into account. Such planning is rather arbitrary, since the composition of the cost of sales includes both permanent and variable costs, and the former practically do not change with an increase or decrease in the volume of sales.

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

We know that the proceeds in the amount of 68,074 thousand rubles. received from the sale of 257 units. products at a price of 264,880.00 rubles. 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 proceeds will amount to 77,875 thousand rubles. (264,880.00 rubles × 294 pcs.) At a cost of 64,767 thousand rubles. (220 295.70 rubles × 294 pcs.).

The forecast report on financial results - in table. 2.

table 2

Forecast report on financial results, thousand rubles

Name	Value
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, enterprises, sales, etc.) remain unchanged, because only fluctuations in sales are taken into account in forecasting.

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

Main business profitability (R 1) is the ratio of pre-tax profit to revenue from product sales. This ratio shows how much profit is in the revenue.

In our case R 1 \u003d 10,078 / 68,074 × 100% \u003d 11,728 / 77,875 × 100% \u003d 15%.

The higher the profit in relation to revenue, the more profitable the company 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 are, how much profit the company has received from the total costs of its production.

In our case, R2 \u003d 8062/56 616 × 100% \u003d 9382/64 767 × 100% \u003d 15%.

Note

At the stage of analysis of management reporting and planning of activities in the short or long term, problem areas can be identified, such as high costs of the enterprise for production of products, low revenues, etc.

Based on the results of the analysis, they formulate a policy for the further development of the enterprise, make decisions, for example, to abandon the production of any type of product, to expand the sales market, optimize costs, increase / decrease the retail price, etc.

Management balance

The form of the management balance sheet has not been approved at the legislative level, therefore we recommend using the form of the usual balance sheet.

Note

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

An example of a management balance sheet - in table. 3.

Table 3

Management balance sheet, thousand rubles

Assets	Value
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 deleted items with zero values, with the exception of section IV, in order to emphasize that the company has no long-term obligations.

On the basis of 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:

Equity ratio (K OSS) is calculated as the ratio of the difference equity capital and non-current assets to circulating ones:

K OSS \u003d (Total for Section III - Total for Section I) / Total for Section II,

in our example, K OSS \u003d (11 042 - 4 806) / 40 875 \u003d 0.15.

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

About good financial condition enterprises and their ability to conduct an independent financial policy is indicated by a value of more than 0.5.

Debt ratio (To z) is calculated as the ratio of the total debts of the enterprise to its own funds:

K z \u003d (Total for Section IV + Total for Section V) / Total for Section III;

at the analyzed enterprise K z \u003d 34 639/11 042 \u003d 3.14.

The standard value of the indicator is below 1. Otherwise, they talk about the excess of the amount of borrowed funds over their own.

Based on the results obtained, you can predict the balance sheet model for the next reporting period, for example, using the percentage of sales method.

To compile it, you need data:

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

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

K meas \u003d Q 2 / Q 1 ,

where Q 1 - the volume of sales of products for the previous period, pcs;

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

in our case, K meas \u003d 294/257 \u003d 1.144.

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

Net profit can be used, for example, to increase retained earnings (5486 thousand rubles) and to repay liabilities (3896 thousand rubles).

Let us compose the forecast balance on the basis of this methodology (Table 4).

Table 4

Forecasted balance, thousand rubles

Assets	Value
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. Short-term liabilities
Borrowed funds
Accounts payable
Total for Section V
BALANCE

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

K OSS \u003d (16 528 - 5 498) / 46 761 \u003d 0.24;

K s \u003d 35 731/16 528 \u003d 2.16.

So, thanks to the measures formed on the basis of management reporting, it was possible to increase the independence of the enterprise from borrowed sources of financing and to improve the ratio of own 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 statement

The statement of income and expenses allows you to analyze the volume of cash flows, proceeds from the sale of products and the costs of its production and sale, to calculate the coefficients characterizing the business activity and financial stability of the enterprise.

First, the company forms a planning document on future income and expenses, and on its basis - the actual management report. On its basis, planned and actual indicators are analyzed.

An example of a statement of income and expenses is presented in table. 5.

Table 5

Management statement of income and expenses

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

When submitting 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 did not arrive - there were no shipments, the customer is late in payment, etc.

If the expenditure side of the report has changed a lot, you may have to prepare a more detailed report for certain items.

Analysis of the statement of income and expenses will allow you to understand in advance that in a certain period there will not be enough funds on the account, for example, for advancing suppliers. Then the management will have the opportunity to respond promptly to the situation, for example, to agree on the postponement of advance payments.

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

Cash flow statement

The cash flow statement (CDS) contains information about cash flows (for the current account and / or cash desk), reflecting both planned and actual receipts and expenditures of funds.

In structure, it is similar to the cash flow budget (BDDS), a distinctive feature is the presence of actual indicators characterizing budget execution.

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

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

Current cash flows - these are receipts from the sale of products, lease payments, expenses for payment of services of suppliers and contractors, remuneration of 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, the costs of development and technological work, provision of loans, payments in connection with the acquisition of shares, etc.

To cash flows from financial transactionsinclude receipts from operations related to attracting financing (cash deposits, payments in connection with the redemption of shares, payment of dividends, redemption of bills, etc.).

To effectively plan spending and receipts of funds, it is necessary to carry out a plan-fact analysis, especially in a crisis situation when payment discipline deteriorates 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

P / p No.	Index	Plan	Fact
	Cash balance at the beginning of the month	12 200,00	12 200,00
	Cash receipts
	Income from core activities
	Customer advances
	LLC "Gamma", contract No. 212 / T dated 28.06.2017
	Revenue from the sale of goods (works and services)
	Alpha LLC, contract No. 12 dated 01/30/2017
	LLC "Gamma", contract No. 212 / T dated 28.04.2017
	Beta LLC, contract No. 17 dated 03.24.2017
	LLC "Omega", contract No. 1 dated 23.12.2016
	LLC "Norma", contract No. 7 dated 16.02.2017
	Income from financial activities
	Investment proceeds
	Expenditure of funds
	Expenditure on core activities
	Settlements with suppliers
	Calculations for components
2.1.1.1.1	Product No. 1
	Plant them. I. I. Ivanova
	JSC "Alpha"
	LLC "Diagonal"
	JSC "Yaroslavl"
	Other suppliers
2.1.1.1.2	Product No. 2
	Plant them. I. I. Ivanova
	JSC "Alpha"
	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
	Remuneration (account 26)
	Insurance premiums (account 26)
	Fare
	other expenses
	Communication services
	Remuneration (account 26)
	Insurance premiums (account 26)
	Consumables, office equipment
	Transport costs
	other expenses
	Expenditure on general production costs
	Division No. 1 (Moscow)
	Remuneration (account 25)
	Insurance premiums (account 25)
	Tools, materials for industrial purposes
	other expenses
	Division No. 2 (St. Petersburg)
	Remuneration (account 25)
	Insurance premiums (account 25)
	other expenses
	Tax
	Income tax
	Property tax
	Expenditure on financial activities
	Investment expenditure
	Cash flow from core business
	Cash flow from financial activities
	Cash flow from investment activities
	Surplus / lack of funds at the end of the month
	Cash balance at the end of the month

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

Note

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

A negative value of cash flow indicates that cash receipts are lower than expenditures. And if the company did not have a 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). Guidance may require more detailed breakdowns, for example, if targets differ significantly from actual targets.

Based on the ODDS, for example, for a month, the cash flow is forecast for the next month, taking into account the expected receipts.

Analysis of the actual spending of funds for the month allows you to classify expenses in terms of permanence and obligation, to form a kind of "constant", that is, the amount of money spent on a monthly basis.

On the basis of registers of payments and payment calendars in terms of receipts of advances and final settlements from customers, the revenue side of the ODDS is formed.

This cash flow planning ensures efficient cash flow management.

Note!

Plan-fact analysis of ODDS allows you to set a limit on the balance of funds 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 case of insolvency of counterparties.

Report on the actual cost of production

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

After the market or contractual fixed price is formed, it is necessary to try to keep the cost price - if the cost price exceeds the price, the company will not receive profit. You can control the situation with the help of managerial report on the actual cost of production (Table 7).

Table 7

Report on the actual cost of production, rubles

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

This report reflects deviations of the planned indicators of the cost estimate from the actual ones. And if they are significant, it is necessary additional analysis to find out the reasons.

As a rule, at this stage of drawing up management reporting, a group of costs with the largest share in the cost of production is also established and, on the basis of this, a cost reduction policy is formed to increase product profitability. For example, in order to reduce the items of material costs, they renew contracts with suppliers for more favorable terms or looking for new ones; in order to reduce the wage bill, reduce the number of workers, involve third-party organizations in the performance of work, etc.

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

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

Actual general operating costs 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 operating expenses is 10,702,173.90 rubles. (41 642.70 rubles × 257 pcs.).

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

The rest of the cost items are accepted for the planned period unchanged according to the actual data of the cost price report.

Table 8

Planning the structure of the cost, taking into account the proposed activities, rubles

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

We have left unchanged all items of costs included in the cost of sales, with the exception of general operating expenses, which notionally do not change depending on the growth in 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 forecasted sales volume - 1,540,780.50 rubles.

If no cost optimization measures are planned, actual data from the previous period are usually taken as part of the planned cost structure.

Accounts receivable and payable report

The statement of accounts receivable and payable can be combined into one management document or split into two independent documents. It allows you to assess the solvency of the enterprise and track the turnover of debts using relative coefficients.

The very fact of the formation of accounts receivable and payable is inevitable due to the temporary gap between payments and the transfer of finished products.

Note

Accounts receivable - funds owed to the enterprise by debtors; accounts payable - money owed by the company to its creditors.

A report on accounts receivable and payable is drawn up for a specific date, and the final recipient sees information on the status of settlements with counterparties and can promptly monitor the performance of duties.

Example of managerial report on accounts receivable and payable of the enterprise - in table. nine.

Table 9

Accounts receivable and payable report as of 21.07.2017

P / p No.	Debtors / Lenders	Amount, rub.	Shipment		Payment made (advance payment)		Amount due as of 21.07.2017
			date	Amount, rub.	date	Amount, rub.
	Debtors
	Beta LLC
	Lenders
	LLC "Norman"

Analyzing the data of the report, the manager will see that on 09.06.2017 the company provided 80% advance payment to LLC Norman (880,000.00 rubles). Products were shipped in full on 15.06.2017. But on July 21, 2017, the company has not yet paid off completely - the debt in the amount of 220,000.00 rubles.

At the same time, Beta LLC made an advance payment (50%) in the amount of RUB 5,500.00 thousand, the products were shipped in full on 23.06.2017. But the final payment of 50% has not been received by the company.

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

Therefore, in case of presentation of claims of creditors, the company will be forced not only to make the 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 figures. At the request of the final recipient, it is detailed by workshop.

Ideally, these types of reports should be generated monthly. This will allow you to control the execution of the annual production programto see the overall production picture.

Let's also pay attention to the fact that, as a rule, bonuses for production workers directly depend on the fulfillment of plans. Therefore, it is also possible to provide for the forms of an explanatory note in case of non-fulfillment of the production plan, which must be drawn up by the heads of shops or other authorized persons of the enterprise, be sure to indicate the reasons for the failure to meet the deadlines (for example, identifying additional faults, out of stock necessary materials to complete the production of products, etc.).

Management report on the execution of the marketing plan

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

The report on the implementation of the marketing plan reflects the planned and actual indicators. The fluctuations of the plan-actual values \u200b\u200bwithin 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 the deviations. Perhaps a competitor with lower prices has appeared on the market, buyers are not able to purchase goods at the offered prices, etc.

The management report on the implementation of the marketing plan allows you to "keep your finger on the pulse" regarding fluctuations in the external environment and promptly respond to changes:

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

Work in progress management report

Work in progress (WIP) is a product that has not passed all the production cycle... The share of WIP costs in the total costs of an enterprise can be very significant.

As a rule, the management report on work in progress is detailed - all costs included in the cost price (material costs, labor costs, overhead costs, etc.), the percentage of work completed and the expenditure of funds according to the standard are indicated (for example, materials were consumed 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 work.

Report on stocks of raw materials and supplies

Stocks of raw materials and materials must ensure the continuity of the production process.

Suppliers often offer discounts when buying large quantities of goods, raw materials, components. But businesses should be aware that the cost of maintaining and storing these goods and materials may exceed the benefits derived from the discount. At the same time, buying large quantities can save on transportation costs.

As mentioned earlier, one of the reasons for not meeting the production plan may be a lack of materials in the warehouse. Therefore, a report on stocks of raw materials and supplies must be generated in accordance with the production plan.

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

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

In the management report on the stocks of raw materials and materials, the actual indicators should be reflected with reference to the production plan.

Finished Goods Inventory Report

It is necessary to form stocks of finished products to ensure the continuity of the production process. But here there are also pitfalls: an increase in stocks of finished products also increases the cost of their storage. 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 products are perishable and have a certain shelf life.

The enterprise should establish such an optimal volume of stocks of finished products, which 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 stocks 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 forecast sales volume from the actual indicators.

Management Accounting is an orderly system for collecting, registering, summarizing and presenting information about the economic activities of the organization and its internal structural units, which is necessary for the adoption management decisions.

Information requirements for management accounting

There are a number of specific requirements for information for internal management. She must be:

operational, formed according to the principle "the faster the better". The minimum period for accounting reports of one month is unacceptable for most management tasks. If there is a choice between accuracy and speed of data acquisition for control, the manager will usually prefer the latter;

target, i.e. aimed at solving specific management problems;

targeted, focused on a specific consumer - a manager and the tasks he solves. Targeting should take into account the level of the service hierarchy of officials in the organization's management apparatus;

sufficient. Management accounting information should not be superfluous, but sufficient for making appropriate decisions. Its sufficiency is largely ensured by the analyticity of the data or the possibilities of their use in economic analysis... This allows, with a certain limitedness of the initial indicators for management, to widely use their derivatives, the results of analytical calculations, groupings, comparisons, etc .;

economical to receive and use;

flexible, adapted to the possibilities of business changes. The market economy is distinguished by the dynamism of development, the uncertainty of many economic situations, and their multivariance. Accordingly, the management accounting system should not be stable and unchanged over many years. On the contrary, it should be subject to constant renewal, improvement and development in form, scale and content.

What does management accounting give

Competently constructed management accounting:

contributes to the successful operation of enterprises;

ensures a high rate of their strategic development;

allows the management to quickly receive the necessary accounting and analytical information;

ensures the organization competitive advantages through cost management, commercial activities and organization of general management;

structures different types and areas of the enterprise;

provides an assessment of the contribution to the final result of various structural units.

Strategic and current management accounting

By purpose, management accounting systems can be subdivided into strategic accounting for the top management of enterprises, companies, firms and current accounting for internal management.

Management accounting objectives

The main purpose of management accounting is the preparation of planned, actual and forecast information on the activities of the organization and its external environment to make the necessary management decisions.

Management accounting information users

The main users of management accounting information are senior managers, heads of structural units and specialists.

Senior executives are typically provided with:

management information in the form of reports on the results of production, financial and investment activities of the organization and its structural units for a specific period of time and for the past;

analysis of the influence of the identified internal and external factors on the results of the organization and its main structural divisions;

planned and forecast indicators for future periods.

Heads of structural divisions are provided with:

management reports on the activities of units at a specific point in time;

planned and forecast information about divisions, as well as the necessary information about the organization's counterparties.

Specialists receive the necessary information about the activities of the organization and its structural divisions, as well as forecasts of the influence of the identified internal and external factors on the results of the economic activity of the enterprise.

Management accounting objects

The objects of management accounting include:

1. Costs of the enterprise and its structural divisions.

2.Results of economic activity.

3. Internal pricing.

4. Forecasting future financial transactions.

5. Internal reporting.

Management accounting tasks

The main task of management accounting is the preparation of internal reports, the information of which is intended for the owners of the enterprise (organization) and the management apparatus.

These reports should contain information on the general financial position of the enterprise, on the state of affairs in production activities.

The information that is necessary for making management decisions, control and regulation of management activities, include, for example:

sales prices;

production costs;

demand, competitiveness, profitability of goods produced by their enterprise.

The main tasks of management accounting are:

analysis of the state of material, labor and financial resources and compilation of information on these resources;

analysis of costs and incomes and deviations on them from the established norms and estimates;

calculation of various indicators of the actual cost of products (works, services) and deviations from standard and planned indicators;

calculation of the financial results of the activities of individual structural units by centers of responsibility, products sold, work performed and services rendered;

control and analysis of the financial and economic activities of the organization, its structural divisions and other centers of responsibility;

planning the financial and economic activities of the organization as a whole, its structural divisions and other centers of responsibility;

providing information on the impact of anticipated future events based on an analysis of past events;

submission of management reports for making necessary management decisions in the future.

Management accounting requirements

The information generated by the management accounting system must meet the following requirements:

reliability. Reliability is understood as the ability for a competent user to draw correct conclusions on the basis of accounting and reporting data;

completeness. Completeness of management accounting means the sufficiency of information for the management of the enterprise and its divisions, the ability to ensure this sufficiency. The most complete are management accounting systems, which include the use of accounts and double entry, which provide control not only over the costs and results of current activities, but also over inventories, investments, and the effectiveness of functional business management;

relevance. Relevant from the standpoint of making a managerial decision are data and information that takes into account the conditions in which the decision is made, its target criteria, which have a set of possible alternatives and characterize the consequences of the implementation of each of them;

integrity. This means that management accounting should be systematic even when it is maintained without the use of primary documentation, accounts and double entry. Consistency in this case means the unity of the principles for reflecting accounting information, the relationship of accounting registers and internal reporting, ensuring, if necessary, the comparability of its data with the indicators of accounting and reporting;

intelligibility. Understandability of management accounting information is ensured by reflecting the results of the analysis of the obtained indicators in the accounting registers, presenting data in the form of analytical tables, graphs, time series, etc .;

timeliness. Timeliness of management accounting means its ability to provide managers with the necessary information by the time of decision-making;

regularity. It is also important that internal reporting is regular, i.e. repeatable in time.

Thus, the data of well-organized management accounting make it possible to identify areas of greatest risk, bottlenecks in the organization's activities, ineffective or unprofitable types of products and services, places and ways of their implementation.

They are used to determine the most favorable assortment of products and works for the given conditions, prices and tariffs for their sale, limits of discounts under different conditions of sale and payment, to assess the effectiveness of additional costs and rationality of capital investments.

Only according to the data of management accounting it is possible to choose the optimal variant of solving problems such as: "make it yourself or buy", "how much it is profitable to buy and sell", "on what equipment should an order be placed", "in what cases is equipment repair better than buying new machines" and etc.

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The concept and types of reporting The role of information in the modern business world is steadily increasing. Reporting is the final stage of the accounting process, therefore, it includes summarizing totals obtained by appropriate processing of current accounting data. Internal reporting is driven by the need for governance within the organization. The purpose of management reporting is to meet the information needs of management within the organization by providing cost and physical indicators ...

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Subject: U management reporting

1. Concept and types of reporting

The role of information in the modern business world is steadily increasing. In entrepreneurial activity, business success, expressed in profit, depends on the quality of the economic information used. To make sound investment decisions, selection of customers, suppliers, other business partners, complete and reliable information is required. In the management system of the enterprise, the internal reporting of divisions is the most important control tool, representing systematized and generalized information.

The report means the information received, presented in a form acceptable to the user. A report is a certain amount of information containing only the information required by the user, which is grouped in the most convenient way.

Reporting is a system of interrelated indicators characterizing the conditions and results of activities of an organization or its divisions over the past period. Reporting is the final stage of the accounting process, therefore it includes summarizing totals obtained by appropriate processing of current accounting data. Reporting is the main source of information used for analysis and management decisions.

The reporting used in practice is divided into types according to the following criteria:

• by the amount of information provided in the report;
• by the purpose of compilation;
• by frequency of presentation.

By the amount of information provided, private and general reporting are distinguished. Private reporting contains information on the performance of any structural unit of the organization or on individual areas of its activities, or on the performance of branches. General reporting characterizes the results of the organization as a whole.

Depending on from the purposes of drawing up puffiness can be external and internal. External reporting serves as a means of informing users about the nature of the activity, profitability and property status of the organization. Internal reporting is driven by the need for governance within the organization.

Depending on the period covered by the reporting, there are periodic and annual. Reporting compiled at regular intervals (week, decade, month, quarter, half a year) is periodic. Annual reports are drawn up within the timeframes regulated by applicable laws and regulations.

Management reporting - internal reporting on the conditions and results of the activities of the structural units of the organization, individual areas of its activities.

Purpose of drawing up management reporting - meeting the information needs of management within the organization by providing cost and natural indicators that allow to evaluate and control, predict and plan the activities of its structural units, as well as specific managers.

The purpose of drawing up internal reporting determines its frequency, form, content. The accuracy and volume of the data presented in the reporting depend on the organizational, technological and economic features inherent in the organization and a specific object of management accounting, the purpose of management in relation to this accounting object. The content, form, timing and obligation of submission of management reporting, as well as its users, depend on the economic conditions in a particular organization.

The management reporting system is one of the most complex and important elements of management accounting. When forming a management reporting system, it is necessary:

Determine the form, deadline for submitting the report and the person responsible for its preparation;

• draw up a scheme for the formation of management reports, determine the owners of the initial information;
• empower the responsible person with the powers of a coordinator, i.e., administratively allow him to receive information from its owners;
• determine the users of the information and the form in which it will be provided to them.

Implementation of management reporting is carried out in several stages.

First step - determination of the volume and content of the necessary information and the solution of the issue of obtaining it from the documents used. For this, the analysis of the information contained in the accounting registers is carried out. It is important to identify the sources of obtaining the necessary information, which may be located in functional units. It is advisable to analyze the very fact that the necessary information is available.

for example , a situation may arise when existing forms primary documents do not have the requisites required to receive the corresponding report. In this case, work should be done to refine these forms of documents. Most often, as a rule, primary documents contain the required amount of information. However, this information is not processed in the form of management reports. In this case, it is necessary to determine the form of the relevant reports, appoint those responsible for their receipt and oblige the owners of this information to provide these reports at the specified time.

The second stage is the stage of analyzing the information contained in the accounting registers, focused on ensuring that information that corresponds to management reporting, as well as information necessary for strategic analysis of the organization's activities, were reflected in accounting registers. To obtain such information directly from accounting registers, it is advisable to improve analytical accounting in such a way that the necessary information is constantly reflected in it.

The third stage is creature automatic system formation of management reporting. This is possible with the appropriate software.

2. Users of management reports and periods of their submission

The main users of management reporting are managers of all hierarchical levels of organizations.

Internal reporting information is necessary for making management decisions on issues related to the assessment of the activities of responsibility centers by managers of higher levels; identifying development trends of responsibility centers; shortcomings and positive aspects in their activities. Internal reporting is information support management decisions and optimization of the organization as a whole.

for example , reporting by profit and investment centers makes it possible to forecast the dynamics of an organization's profit and assess the risk of new long-term investments.

Familiarization of the organization's personnel with the data of management reporting improves relations in the team, forms employee confidence in their position.

The timing and frequency of management reporting is an important parameter that significantly affects the effectiveness of the entire system.

The frequency of preparation of management reporting is an individual matter. However, the general criterion for choosing reporting periods is the timeliness of management decisions based on the reporting data. At the lower levels of management, the role of efficiency in decision-making is higher than at the upper ones. Therefore, the reporting periods at the lower levels should be shorter.

Conventionally, three standard time periods can be distinguished, which are basic for organizing accounting and presentation:

• short-term reporting;
• mid-term reporting;
• periodic (strategic or long-term) management reporting.

Short term the reporting is considered, which is provided most often: daily and weekly. However, due to the specifics of production, monthly reporting can act as a short-term one. Short-term reporting is the provision of information from primary documents in various aspects, that is, this is information that is most relevant to the organization and reflects the important and dynamic aspects of its activities. The main users of such reporting are middle managers or line managers. They must make management decisions based on this information.

The second time period is medium-term. Management reporting for this group is compiled at intervals from once a week to once a month. Such reporting combines the indicators of the organization's activities and necessarily contains forecast indicators for the next period.

for example By analyzing the cost of production for a month, it is possible to make forecasts of its changes for the next month in accordance with changes in market prices for materials and components, that is, to track changes in the cost of raw materials. Based on the data of such reporting, it is possible to predict changes in prices for manufactured products and show changes in their profitability. The consumers of such reporting are managers of a higher level: the management of the organization, top managers. Many decisions that are made on the basis of management reporting drawn up in the medium term can have a significant impact on the organization's activities as a whole.

Long-term management reporting compiled at intervals from once a month to once every six months. It is compiled for the purpose of linking with financial reporting to show changes and relationships between management performance and reporting data. This is due to the fact that financial statements are submitted once a year. In connection with the use of the quarterly financial reporting system, long-term management reporting is a purely strategic, analytical tool, since it is necessary to respond to changes in the situation with a frequency of once a quarter, in accordance with the frequency of financial reporting. In accordance with this, short-term management reporting is of great importance, which should reflect the dynamics of changes, including in tax planning.

The frequency of preparation of internal reporting is determined by the organization itself, it is individual for each group of responsibility centers and segments. It is important, however, to have a clear reporting schedule. Internal management reporting is an integral part of common system internal control in the organization.

In the absence of timely feedback, there is a high probability that the manager's work will get out of control, and his goals and plans will lose relevance and remain on paper. The leader should always know how effective his activities are. If his plans are not being fulfilled, he should find out about it as soon as possible. Otherwise, he is deprived of the opportunity to take corrective measures and make changes that are necessary to update the tasks. Internal management reporting is prepared for the manager who is responsible for achieving the set goals.

The drawbacks of internal reporting that are typical of traditional approaches to internal control are that the focus is on errors rather than giving managers information to take effective action. As a result, the feedback turns out to be aimed at conducting audits and looking for omissions, returning the manager to past events and operations, generating data about what is no longer amenable to correction, limiting the ability to act with the future.

3. Basic requirements for management reporting of the organization

Competently compiled and timely submitted management reporting provides a solution to the following tasks:

• quick overview of activities;
• presentation of information on actual performance;
• identification of existing problems and shortcomings, as well as an indication of potential problems in the future;
• providing information for choosing the best options for solving issues and problems daily activitiesas well as for making strategic decisions.

Operational management decisions are made at the lowest levels to the maximum of the presented data, at the highest levels of management the amount of information is reduced, and the responsibility for the decisions made (their significance) increases.

Formal and special requirements are imposed on the structure and content of internal reporting.

Formal requirements for internal reporting:

• expediency;
• objectivity and accuracy;
• efficiency;
• brevity;
• comparability of reporting;
• targeting;
• efficiency.

Feasibility - information summarized in internal reports should be consistent with the purpose for which it was prepared.

Objectivity and accuracy - internal reports should not contain subjective opinions and biased assessments; the degree of inaccuracy in the reports should not prevent the adoption of informed management decisions. Since the promptness of reporting is reflected in the accuracy of the information received, therefore, one should strive to minimize this factor.

Efficiency - reporting must be submitted by the due date, which is important for timely decision-making.

Brevity - there should be no redundant information in the reporting: the smaller the volume of the report, the more quickly it is possible to comprehend its content and make an appropriate decision.

Reporting comparability - the ability to use reporting information for the work of different responsibility centers; reporting should also be comparable with plans and estimates;

Targeting - information of internal reporting should be communicated to the responsible executor, while keeping confidentiality.

Efficiency - the costs of obtaining internal reporting should be comparable to the benefits of using management information.

The purpose of internal reporting is to provide management personnel at all levels with the necessary information. Requirements for the content of reports should be formulated by the heads of the responsibility centers and other persons related to management personnel or interested in internal management information. For users (managers), not only the content of the information is important, but also the methods of its delivery, the forms of reporting. Internal reporting should provide the ability to quickly review and evaluate actual results, their deviations from the goal, identify shortcomings now and in the future, and select the best options for making management decisions. It is not easy to generate reports that provide information to solve a set of problems.

Special requirements for internal reporting:

• flexible but uniform structure;
• clarity and visibility of information;
• optimal presentation frequency;
• suitability for analysis and operational control.

The primary analytical information should be provided directly in the reporting forms: deviations from goals, norms and cost estimates, ranking deviations, etc.

Flexible yet consistent structure reporting information stems from the very essence of internal management and management accounting. The information must have sufficient internal flexibility to respond to the changing goals and needs of the responsibility center managers. At the same time, information uniformity must be ensured. The system of management accounting and internal reporting may change due to significant changes in the nature of the organization's activities.

Flexibility and uniformity of internal management information is ensured by the fact that the required amount of data accumulates at the primary level of registration, which can then be selected and grouped in the required information context. If you do not select the necessary data at the stage of their input, then later it is problematic to obtain the information required in each specific case. Each responsibility center should receive reports containing the necessary information. The information system should be designed in such a way that there is a certain uniformity of data for grouping and comparison.

Comprehensibility and visibility of information boils down to the fact that each reporting form must contain the information required by a specific user. Excessive detailing of reporting information, its overload with insignificant indicators complicate the understanding of reporting and hinder the adoption of correct management decisions.

Optimal reporting frequency is derived from the purpose of information and decision-making capabilities, that is, from the factors that determine the use of reports in management. Some reports are used more often, others less often. The frequency of internal reporting varies. Internal reports can be annual, quarterly, monthly, weekly, daily, or as variance occurs. There is no need to increase the frequency of submission of reports if you cannot make a decision based on them. If the bonus is paid to personnel on a quarterly basis, then there is no point in receiving monthly information on the fulfillment of the bonus conditions. At lower levels of government, more frequent and more detailed reports are needed. With the transition to higher levels, reporting is less frequent and contains more aggregated indicators.

4. Format for presentation of management reporting

Based on internal reporting, decisions are made at all levels of the organization's management. It is important to shorten the time that passes from receiving the report to making a decision and translating it into management actions. In this case, the accessible form internal report, location and submission of relevant information. There can be no standard set of internal reporting with uniform forms and information structure. Internal reporting is individual. It is possible to highlight the classification features that characterize general approaches to the forms of internal reporting.

• complex;
• thematic (by key indicators);
• analytical.

Comprehensive summary reports are presented, as a rule, for a month or another reporting period (quarter, six months, etc.), they contain information on the implementation of plans and the use of resources for a given period, on income and expenses by responsibility centers, on the execution of cost estimates, profitability , cash flow and other indicators for general assessment and control.

Thematic reports are presented as deviations arise in such indicators that are most important for the successful functioning of the organization as: sales volume, losses from defects, underdelivery on orders, production schedule and other indicators controlled by the responsibility center.

Analytical reports are provided only at the request of managers and contain information that discloses the causes and consequences of results for specific aspects of activities.

for example : a comprehensive assessment of the reasons for resource overruns, changes in profitability, the level of sales by market sector, analysis of the market and the use of production facilities, risk factors for activities in certain areas, etc.

By management levels reports are divided into:

• operational;
• current;
• summary reports.

Operational reportspresented at the lower level of government in the centers of responsibility contain detailed information to make current decisions; compiled weekly and monthly.

Current reports containing information for the average level of management in profit centers and investment centers, are compiled from monthly to quarterly intervals.

Summary reports are formed for the top management personnel of the organization. On their basis, strategic decisions and general control and monitoring of the activities of management personnel is carried out at the middle, sometimes at the lower level. The frequency of these reports ranges from monthly to yearly.

Operational information addressed to the grassroots centers of responsibility should not be presented unchanged to the highest level of management. At the lower level, operational decisions are made to agree and implement production plans use of department resources. This information should be generalized, aggregated into more general indicators for presentation to the middle management level. At the highest level, an even greater degree of generalization of information is required.

By the amount of information internal reports are subdivided into summaries, summary reports, general (summary) reports.

Summary - this is a summary of individual performance indicators of the unit for a short period (sometimes for a day, a week).

Final reports are compiled for a month or other reporting period. They summarize information about the controlled indicators of the responsibility center.

General (summary) reports are compiled for the organization as a whole and contain information corresponding to the forms of financial statements adapted for the purposes of internal management.

By presentation forms internal reports can be in tabular, graphical or textual form.

Tabular form internal reporting is most acceptable to compilers and users. Most of the information in the internal reporting is expressed in numerical indicators, which are most conveniently presented in tabular form. Moreover, it has become traditional. It is important to properly structure the reporting indicators, divide them into zones, highlighting the main ones that require special attention. For clarification of the report, a note with comments and disclosure of key indicators may be prepared.

Graphic form more visual, but you should not overload graphs (diagrams) with unnecessary digital information. Displaying more indicators in this form makes it difficult to perceive. A large amount of digital data is more clearly presented in tabular form.

Text form submission of information is acceptable in cases where there are no digital data or their volume is insignificant; it is necessary to explain in detail the relationship and meaning of the information presented. Text reports are often prepared in addition to reports presented in tabular or graphical form.

For the main periodically generated management reports, it is advisable to approve the format, content, timing and frequency (frequency) of submission, as well as distribution rules. Standardization will increase the efficiency of preparation and delivery of reports, will save the time it takes for managers to familiarize and understand the information provided. Standardization does not mean that all executives will receive the same reports. Managers will be informed about which set of reports, in what formand with what frequency (daily, weekly or monthly) they will receive. The set of reports should include the necessary comments and explanatory information. Additional insights can add value to the data presented.

Thus, the determining factor in the formation of a management reporting system in an organization is its economic efficiency, that is, the benefits that the organization will receive from the availability of reporting by improving the quality of management decisions. The introduction and use of a management reporting system is considered justified when the resulting positive effect exceeds the costs required to create such a system.

Internal reporting is not a result management analysis, which is the most important element of management accounting, and the primary material for such an analysis. Based on her information, you can give overall assessment the results of the activity of the centers of responsibility, to judge the degree of achievement of their goals and the correctness of the adopted operational corrective decisions.

More often, organizations use a three-level system for generating management reporting. The main levels are:

• journals (books) - to record all the operations of the organization in accordance with the field of activity or by department;
• summaries - brief information about the activities of the unit for a specific date;
• final reports - reports presenting the results of the organization as a whole and its structural units for a certain period.

The structure of management reporting includes reports in accordance with the following classification:

• complex reports;
• reports on key indicators;
• analytical reports.

a) comprehensive reports - usually submitted monthly.

The following indicators can be reflected in complex reports: profitability of the organization as a whole and its structural divisions; structure of income and expenses by centers of responsibility, structural divisions, individual projects, etc .; indicators of accounts receivable and assessment of the provision for doubtful accounts receivable; the amount of reserves and the estimate of the reserve for impairment of reserves; cash flow and forecast of upcoming use and cash flow.

b) reports on key indicators - are presented on a specific date at any time. They reflect the most important factors for the successful functioning of the organization: the number of orders received; underdelivery for orders; volume of manufactured products; volume of products sold; percentage of faults or defects; planned performance results; efficient use of resources.

c) analytical reports - prepared at the request of the management.

Analytical reports are designed to more deeply reflect individual aspects of activities. Examples of issues disclosed in analytical reports may include: the reasons for the increase in the level of inventories, leading to a freeze of funds spent on the acquisition of these assets, impairment of inventories and losses, and, therefore, to a greater exposure to business risks; reasons for excessive increases in overtime, resulting in increased costs wages staff; the change specific gravity organizations in the relevant market segment.

Analytical reports also reflect the market situation, the relationship of external and internal factors development of the organization, disclose existing threats and opportunities development of the organization.Such reports are compiled as the need arises.

The focus, format and content of analytical reports are not limited. Reports should be characterized by a clear statement of the disclosed questions and objectives; contain a description of the analysis method, definition of new terms, quantitative and qualitative data necessary to understand the report, disclose all the assumptions used and their assessment; provide the user with a summary of the results and conclusions, as well as a description of the risk factors.

Examples of reports that are generated in the management accounting system in an organization are:

Reports on current activities: on the production of products (works, services); on the sale of products (works, services); about procurement; on receivables and payables; about stocks of finished products; work in progress; about stocks of raw materials and components; about barter transactions; cash flow, etc.

Investment reports: on the movement (acquisition and disposal) of fixed assets, on the movement (acquisition and disposal) of intangible assets, on planned long-term investments in the context of investment projects.

Financial reports: about short-term financial investments; on attracting and servicing borrowed capital; attracting share capital, etc.

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According to the law, Russian enterprises maintain accounting records and prepare reports. But standard accounting does not contain the information necessary for effective business management.

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How are management accounts prepared and what does it include? In Russia, enterprises are required to submit different types of reporting to the regulatory authorities.

In particular, accounting reports are submitted without fail. These documents contain financial performance indicators and are required for tax purposes.

But besides that, enterprises and management reports are made up. It is not required to be submitted to government agencies, but it is important for the company itself. What is management reporting in Russia and what does it include?

General points

Management reporting differs from other types of reporting - accounting and financial. The main difference is methodology.

If financial types reporting involves the collection of statistical data on capital turnover, then in management reporting such data are not only displayed, but also interpreted.

Studying such reports allows you not only to become familiar with the indicators, but also to understand their meaning.

An analysis of management reporting shows that it causes high profitability in the production of certain types of products, or, conversely, what is the reason for low revenues and where there are high costs.

Based on interpretation financial indicators enterprise management can make better decisions, plan further activities.

It is the timely preparation of management reporting that allows us to identify in time areas of business processes with insufficient efficiency. Management reporting is an essential component in business planning.

The main indicator of management reporting is the company's value, which depends on sales volumes, net profit, reserves, etc.

When generating reports, indicators of the cost of production are taken into account. Accounting for the results of activities, the level of labor productivity.

But they also pay considerable attention to non-financial indicators - the number of buyers, the structure of customers and similar data.

That is, management reporting allows you to collectively assess financial and non-financial indicators.

This contributes to a comprehensive analysis of business performance, since it is not only financial indicators that reflect business development.

What it is

The very name "management" reporting indicates the purpose of this documentation.

As a rule, the content of the reporting is adapted for specific managers for whom the documents are drawn up.

For example, it is important for a CEO to provide data related to the cost of production, characteristics of work in progress, production volumes, stocks of raw materials and supplies.

When submitting reports to the Deputy Director for Sales, it includes information about the structure of sales, the dynamics of product shipment, the amount of delivery and sales costs.

The CFO needs data on the company's budget, costs, profit and loss, and accounts payable.

Necessary to miscalculate the prospects for implementing solutions at the management level. Based on the information provided, you can analyze the actions taken and find miscalculations, planning the next stages of development.

In most cases, management reporting supplements accounting and financial reporting in terms of generating data required for improvement.

Therefore, in addition to financial indicators, these statements also include non-financial information that is important for making management decisions.

The main goal of management reporting is to identify and eliminate gaps that hinder successful development.

Formation principles

The preparation of management reporting is inextricably linked with budgeting processes and, in fact, it is one and the same process, since it is associated with control over the execution of budgets.

The foundations for the formation of management reporting are based on the following principles:

Timeliness	All necessary data must be prepared in due time, which is provided to ensure effective management
Adequacy	Data must be provided in full, but without an overabundance of information
Objectivity	Information must correspond to the real situation
Comparability	The presentation should allow for an objective comparison of actual and planned figures for different reporting periods
Confidentiality	Reporting is provided for review only to those directly interested
Economic expediency	The costs of preparing reports should not exceed the economic benefits from its use

When analyzing management reporting, the same principles are applied as for accounting reports. Analyze the structure of the balance sheet, cost composition, profitability, liquidity, compliance with the plan.

A significant difference in management reporting is in its frequency.

If accounting is compiled and analyzed on a quarterly basis, then management reporting is characterized by shorter intervals. This allows you to respond to market changes in real time.

Legislative regulation

The regulatory framework related to the formation of management reporting is inextricably linked with the legal provisions on accounting.

This partly confirms the methodological relationship between management and accounting, which is based on the unity of the accounting methods used and the principles of reporting.

At the same time, the provisions of many other standards can be used with respect to management accounting.

At present, the system of regulatory documents regulating management accounting, directly or indirectly, can be represented by four levels:

Legislative acts, Government Resolutions, Presidential Decrees governing management accounting, and in particular	... This can also be attributed to accounting standards for IFRS. Separately, it is worth mentioning the Concept for the development of accounting, approved by
Accounting regulations developed by the Ministry of Finance	In relation to management accounting, apply,. This also includes the Instructions for its use.
Recommendatory documents	Comments, instructions, letters of the Ministry of Finance of the Russian Federation and other departments, instructions on PBU
Local standards of the organization	Working chart of accounts, forms of primary documents, workflow schedules, etc.

Examples of management reporting and what it includes

In the Russian economy, management reporting is formed according to the following algorithm:

Finding out what information needs to be included in the reporting and how often the data should be provided	It is necessary to immediately clarify which data is of priority and which is of secondary importance.
Discussion with the accountant about the procedure for obtaining the necessary information	As necessary, the preparer can interact with other employees who are in charge of important industries for analysis
Creation of forms of documents that will allow you to fix the numbers and subsequently interpret them	In this case, it may be necessary to adapt the reporting forms for a specific recipient
Practical reporting	For a small business, one person can do all the work. But for a large company, the work of a special commission is advisable.

Direct reporting is associated with the solution of two groups of problems. The first is collecting the necessary digital indicators.

The source is the accounting documents that reflect all assets and transactions. The second is the interpretation of the collected data, which depends on who is reporting.

Detailed information or concise presentation of numbers may be required.

What forms are taken

Management reporting is unofficial, therefore its forms are not regulated by law.

The necessary forms can be developed by the organization according to the appropriate structure. For example, it may be more convenient for the CFO to receive tabular reports, and for the owner - graphs with visual indicators of growth.

In some cases, reporting forms are used that are similar to those used for accounting and financial reporting.

Management reporting includes such basic forms as:

Samples of filling

When drawing up the reporting forms, it is important to check that they contain the necessary information. Accordingly, the forms are based on real data.

Initially, they prepare reports based on the forms adopted in the organization. Then the completed forms are checked for the availability of the necessary data and, if necessary, supplement them by developing additional forms.

Forms are filled out exclusively with real data for the same month. Completed forms are coordinated with the addressees of the reporting.

In this case, it may be necessary to make corrections and additions. That is, there are no unambiguous forms that are used for management reporting.

There are only some general samples that the company has the right to change as it is more convenient for the analysis of management activities.

The form of management balance is possible. A sample analytical management balance sheet is available.

In what terms is provided

Frequency is an important parameter for management reporting. As a rule, the forms for management accounting are more often than accounting.

The main forms of reports are made monthly. For some indicators (cash flow, sales volumes, etc.), reports can be prepared more often - quarterly, weekly, daily.

Video: company management reporting

When preparing reports, it is very important that information on the activities of the enterprise does not become outdated. Data should be provided at most a week ago.

Some indicators require even more frequent updates. Likewise, some metrics do not need to be updated as often and may be provided less frequently.

As a rule, the frequency of submission of management reports is discussed with the recipient of the report.

Depending on the need for the frequency of analysis of indicators, the frequency of provision is established.

Nuances during the audit