Currently, most of Vietnamese enterprises are small and medium enterprises, without appropriate processes for sustainable development. However, any business that wants to develop as well as stabilize and make timely plans before the market needs to have management accounting reports. Today, let's be together Johnson's Blog Learn the process to create a report here!
What is a management accounting report?
Management accounting reports is the activity of presenting the state of a business at the present time or in the short future. This report is like an internal report that mainly serves the internal environment of the business. They aggregate information from accounting records and may include data such as: transactions, operating costs, profit, sales…
Businesses need to rely on and the support of management accounting and new managers can come up with appropriate plans and strategies. From there, the new business develops in the right direction and achieves its goals.
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When is the management accounting report prepared?
Unlike conventional reports, Management accounting reporting time This will fall at the end of the month, quarter or year. These reports will be used for strategic decision making. Therefore, they can be created at any time when the administrator requires and needs that information quickly. Because businesses need to adapt to changes from the market and need to make quick decisions.
Management reports are essential for individual accountants. then the accountant knows the work status to manage well, check the data easily and detect the deviations, etc. or more simply if the boss asks about the expenses or the books, there are also can answer immediately.
Advice: In some small and medium enterprises, the director does not need or require a report, so the accountant himself, if he wants to manage his work well, should also actively create a complete management report.
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Standardized management accounting reporting process
In order to make a valuable and effective accounting report, it is also necessary to have a management accounting report creation process suitable, specifically:
Collect needs
It is necessary to identify the subjects who need to use accounting information such as directors, management boards, individual accountants or related departments, etc., so that when collecting information, they can help optimize the most.
In addition, it is also necessary to select the content included in the report so that there is no need to filter information when using it. Based on the purposes of the departments, the management board to provide the appropriate content and data.
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Unify language and personality
In fact, at enterprises, each object will have different understandings of the concept, so it is necessary to have an agreement between the parties to have a common concept for all. Businesses without that consensus will be very conflicted.
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Data organization
Once the needs are understood and the concepts of the object are agreed upon, the management accountant will begin to organize the data. Then, the data will be transferred to the people who need it quickly and in a timely manner.
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Time to provide input, output and result data
A management report doesn't just stop at numbers, but most importantly, gives appraisals and recommendations on sales policies, business plans, and appropriate orientations.
Assume: An electronics supermarket is in a state of inventory Many lines of Aqua refrigerators, when reporting, should give the management board suggestions for suitable options. Items that are in stock should be sold at a discount during the student enrollment period or another viable option. What is a reasonable price, what is the cost for advertising... instead of waiting for the boss to ask, proactively propose plans to help keep the products from being overstocked.
Or in the case of sales departments, it is very common to run out of numbers at the end of the month to meet the desired KPIs, causing a crisis situation, overloading the freight forwarder, even having to hire time-consuming carriers. In case of urgent external tasks, consuming unnecessary costs, management accountants will need to proactively come up with good plans so that managers can avoid that terrible situation.
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Epilogue
Here is an article about management accounting reports which you can refer from Johnson's Blog. We hope that the above information will help you, especially those who work in the field of finance and accounting.
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