Internal Reporting

Define criteria that can be used to determine the quality of internal management reports

1

Agenda

1. Defintion2. Problems of Internal Reporting3. Principles of Internal Reporting4. Internal Reporting Process5. How to improve Internal Reporting?6. Layout of Internal Reports7. Layout Recommendations8. Examples of Internal Reports

2

1. Definition

Financial data or other info accumulated by one individual to be communicated to another within a business entity.

The information assists others in the decision-making process.

3

2. Problems of Internal Reporting

Commitment of senior management

Sufficient time and financial resources

Quality of implementation

Background and experience of the staff

4

3. Principles of Internal Reporting

Consistency Reliability Focus on action Timeliness Easy to use Objectivity Economy

5

4. Internal Reporting Process

Data collection

Preparation of written report

Presentation and discussion

Documentation of results6

5. How to improve Internal Reporting?

Leveraging technology

Developing key metrics

Speeding up the process

Presenting more useful data

Reducing information overload

7

6. Layout of Internal Reports

6.1 Reasons for Reports

6.2 Types of Report and their Contents

6.3 Report Format and Reporting Date

6.4 Report Recipients

6.5 Report Issuers

8

6.1 Reasons for Reports

Documentation Planning

Controlling

Monitoring

9

6.2 Types of Reports and their Contents

There are three different types: Regular report Exception report Ad-hoc report

Important for the Contents of the Report: Structure of the report Level of detail Format Information content

10

6.3 Report Format and Reporting Date

Important for the Format: Amount of information Presentation Visual aids

Key points of the Reporting Date: Reporting cycle

„Information overload“ Reporting date

„The faster, the better“

11

6.4 Report Recipients

Focus on employees of a company

Main target group; usually the Management

Selection criteria

Hierarchical

Functional

12

6.5 Report Issuers

Controlling

Accounting

Treasury

Investor Relations

Etc.

13

7. Layout Recommendations

What is the purpose of the information provided and how will it be used?

What type of report should be produced? When should the report be published? What format should the report have? What is the main information that the user of

the report should remember?

14

8. Examples of Internal Management Reports

15

16

8.1 Construction Project

8.1.1 Evaluation of the Construction Report

One page progress report

Good Visual Aids (Graphs and Tables)

More specific comments needed

Written conclusion or summery missing

17

8.2 ABC NEWSAGENT – WEEKLY MANAGEMENT REPORT

18

8.2.1 Newsagent

Weekly management report Budget comparisons Forecasts available Colorcoding

Scores of figures Clear table format

19

Thank you for your attention!!!

20