Must provide all users with the information needed to make decisions. Therefore, you need to decide on the list of management reports and their content.

It should be noted that this work, unfortunately, does not have any clear and unambiguous technology. We can say that developing management reporting forms is a kind of art.

After all, you need to be able to develop formats for management reports that, on the one hand, would contain truly useful information, and on the other hand, the cost of obtaining this information would be acceptable to the company’s management.

By the way, questions about the relationship between utility and cost will arise throughout the entire project to establish and automate management accounting.

Thus, this article discusses all practical aspects associated with the development of a management reporting system. In particular, when developing management reporting formats, it is necessary to take into account the main characteristics that they must satisfy.

In addition, this article presents a classification of management reporting and indicators that may be contained in it.

Characteristics of management reporting

Management reporting can mainly be characterized only by qualitative requirements. Although some companies may use quantitative parameters.

Perhaps the most common quantitative characteristic of management reporting is the number of pages in the management report. It is believed that one report should be placed on one page, otherwise it will be very difficult to analyze. True, it does not specify what page format we are talking about and what font.

In some companies that strictly followed this principle, I have seen reports printed on an A3 page, and in very small print. Yes, formally these reports were placed on one page, but they were very difficult to use.

In general, you should not apply this quantitative limitation so straightforwardly. If a management report is placed on two A4 pages, and, indeed, no data from such a management report is superfluous, then it is not at all necessary to print it in very small print in order to place it on one page.

Although quite often, upon closer examination of such long management reports, it turns out that they can quite easily be placed on one page. One company, for example, had a management report that, despite using very small font, barely fit on two pages.

Moreover, significant articles of the management report were not detailed enough, and less significant articles were presented with excessive detail. After a simple procedure (excessive detailing of non-essential items was reduced), the management report fit on one page without any problems, and it became much easier to use in practice.

Sometimes management reporting is made “large” because, just in case, the maximum possible detail is included in it. For example, such a management report item as “Revenue from sales” in the sales report can be printed with detail to groups, or with detail to a specific position.

It is clear that in the second case the management report can turn out to be much more cumbersome. By the way, to avoid such problems with visualizing management reporting, it can be viewed electronically using a software product that, if necessary, allows you to expand one or another hierarchical indicator.

So, if we return to the consideration of the qualitative characteristics of management reporting, then among the most important we can highlight the following:

understandability;

significance;

reliability (credibility);

comparability.

Clarity of management reporting

It should be noted right away that knowledge of the purposes for preparing a specific management report can significantly increase its understandability for the user. The goals of preparing management reports should be determined when developing a classifier of management reporting.

So, it is obvious that management reporting should be understandable to users, but there is one important caveat. In order to understand management reporting, users must have certain knowledge. In particular, you need to know at least the basics of economics and finance.

Of course, company managers are not required to know in detail the methodology for generating management reporting, but they must understand the meaning of each indicator of the management report they use. This knowledge includes, among other things, knowledge of management accounting policies, since the values ​​of most management reporting indicators directly depend on it.

Therefore, as part of a project to establish and automate management accounting, training should be planned, including for company managers. By the way, the lack of training in such projects has a very negative impact on the final results, but, nevertheless, very often too little attention is paid to this issue.

Thus, the information contained in management reporting should be understandable to users familiar with the principles of management accounting and the basics of economics and finance.

The importance of management reporting

In addition to clarity, management reports must have another important property - contain meaningful information. It would seem obvious that management reporting is prepared for decision making, and not just for the sake of being. But nevertheless, quite often management reports are overloaded with completely unnecessary data.

Again, one of the reasons for such information overload in management reporting is the lack of necessary preparation and planning for the management accounting project.

In particular, the classification of management reporting is not thought through in advance, the goals of the reports are not determined, etc. As a result, it turns out that gradually almost all management reports are littered with completely unnecessary information. This means that it is unnecessary for this management report.

By the way, those who like to add additional information to management reports, so to speak, just in case, can take advantage of the capabilities of software products that allow not all indicators to be displayed on the screen. On the one hand, you can immediately provide in the settings all potentially interesting indicators for a particular report, but, on the other hand, when visualizing it, only highlight some of them.

It should be noted that the significance of a particular indicator in management reports may depend on the period for which it is compiled. For example, in one company engaged in road construction, the management staff required daily management reporting from its production units (DRSU - road repair construction sites) scattered throughout the region.

It is clear that remote objects require operational control. But, as it turned out when analyzing management reporting, among the indicators that were collected every day, no more than 30% were truly significant. Preparing all other indicators of daily reports was simply an ineffective use of the time of specialists working in DRSU.

So, the information contained in management reporting should be useful for decision making and help evaluate past, present and future events, confirm or correct past estimates.

Reliability (authenticity) of management reporting

The reliability of management reporting is also a logical characteristic, like the previous two. Although one of the differences between management accounting and accounting is that very scrupulous accuracy is not always required.

After all, sometimes it is much more important for a manager to receive a management report that is not absolutely accurate, but within the required time frame, than a report that is verified to the last penny, but is late. This remark does not mean at all that accuracy does not matter at all for management accounting.

But the most important thing is that management reporting must reveal the real activities and state of affairs in the company and be free from significant errors.

There are certain conditions to ensure the reliability of management reporting:

truthfulness;

neutrality;

the predominance of essence over legal form;

prudence (conservativeness).

Truthfulness of management reporting

Truthfulness means that management accounts must truthfully reflect the transactions and other events on which they are based. Lack of veracity may be due to difficulties in identifying events and assessing them.

This can happen, for example, when filling in analytics values ​​while entering data into the accounting database, especially in cases where it is impossible to determine the analytics based on primary documents.

Or it may turn out that the original of the primary document did not arrive on time, and the “internal” primary document contained errors.

Neutrality of management reporting

Neutrality implies that the information contained in management reporting should be unbiased and should not influence decision-making in order to achieve the planned result. This can happen quite often in cases where managers rely too much on their intuition.

That is, they already have a ready-made solution in their heads, and with the help of a management report they only want to confirm its correctness. In such cases, the management report may be “tailored” to a ready-made result. Naturally, we are not talking about any deliberate distortion of data here.

“Adjustment” may consist, for example, in excluding from the management report indicators that clearly show the disadvantages of a prepared or already implemented solution. Another way to “adjust” may be to use a different accounting policy when calculating certain indicators.

After all, the same indicators can have different meanings when using different principles for recognizing and evaluating business transactions. True, this method of “adjustment” can be successfully applied, mainly, when developing planned management reporting (budgets), because actual reports can only be obtained on the basis of information already entered, which means that it is quite difficult to change management accounting policies.

True, management accounting policies can initially be chosen in such a way that, when used, the indicators that interest the company’s owners would look more attractive.

The predominance of essence over the legal form of management reports

The predominance of essence over legal form is also a completely logical condition for ensuring the reliability of management reporting.

Events must be presented in accordance with their economic substance and economic reality, and not only with their legal form, which do not always correspond to each other.

Obviously, this condition is directly related to management accounting policies, or more precisely, to possible differences between management accounting policies and accounting policies.

Prudence (conservativeness) of management reporting

Prudence or conservatism in management reporting means that in the face of uncertainty, care must be taken in making judgments so that assets are not overstated and liabilities are understated.

Where uncertainty is high, events should be disclosed only in notes to the reports. In other words, management reporting should not be “embellished” so that it is more pleasing to the management and/or owners of the company.

Comparability of management reporting

This characteristic of management reporting, such as comparability, is no less important than the previous three discussed above. It is clear that if the formats of management reporting change too often, it will be very difficult to control and analyze the dynamics of the indicators of such reports.

Of course, it is not always possible to develop the required form of management report the first time. To finally make sure that the form is complete, as a rule, it is necessary to draw up a management report several times in order to test it with numbers.

In this case, adjustments to the formats of management reporting are possible, but in the future it is advisable not to make changes to the forms of management reports unless necessary. Such a need may be due to a change in the company's strategy, which may require planning and monitoring of new indicators that were not previously included in management reporting.

Yes, in this case, the formats of management reports can be changed, but still, the company usually does not change its strategy so often, therefore the forms of management reports should not change often.

The number and composition of management reporting may change for another reason. If the company has a budget management system, and the planning model for certain reasons was detailed, which led to the emergence of new budgets and new indicators, then, naturally, it will be necessary to increase the number and composition of actual management reporting so that it is possible to obtain plan-factual reports for subsequent analysis.

Such actions, of course, may lead to changes in the existing formats of actual management reporting.

Classification of management reporting indicators according to the “time” parameter

All management reporting indicators for the “time” parameter can be divided into three groups:

interval (revolving);

instant (balance);

mixed.

Interval or turnover indicators of management reporting provide information for a certain period of time (day, week, month, quarter, year, etc.). Such indicators may include, for example, sales volume, sales revenue, profit, financial flow, etc.

Instantaneous or balance indicators of management reporting provide information at a specific point in time. Such indicators may be, for example, cash balance, accounts receivable/payable, inventory, etc.

Mixed indicators are formed from interval and instantaneous ones. Examples of such indicators may be asset turnover (all or some elements: accounts receivable, inventory, etc.), return on assets, return on equity, etc.

It is necessary to pay attention to the fact that for the analysis of management reporting it is better not to use instantaneous indicators in their pure form, because they can vary greatly in each period. It is better to rely on interval or mixed (interval and instantaneous) indicators.

For example, if a company’s accounts receivable or inventory increases, then based on this information it is impossible to draw an unambiguous conclusion. If the turnover period of receivables or inventories increases, then this is clearly a negative trend, but the growth of receivables or inventory in itself says little.

Classification of management reporting according to the time characteristics of indicators

All management reporting on the time characteristics of indicators can be divided into three main groups:

factual management reporting;

planned management reporting;

plan-actual management reporting.

From the name of these groups of reports it is obvious what information they contain. But still it is necessary to make a few comments.

When preparing actual and planned management reporting, the same management accounting policies of the company must be used. Otherwise, it will complicate the analysis of plan-factual management reporting.

After all, some plan-actual deviations can arise only due to differences in the accounting policies that were used during planning and accounting.

When generating plan-fact management reporting for financial responsibility centers (FRCs), you need to remember that in this case it is necessary to use the principles of flexible budgeting.

Thus, when forming plan-actual budgets of the Central Federal District, it is first necessary to calculate a flexible plan, and then calculate plan-actual deviations. If this is not done, then the assessment of the results of the work of the Central Federal District in the reporting period will be incorrect.

Classifier of management reporting (by type of report)

Before you start developing management reporting formats, you must first create a report classifier, that is, a complete list of all necessary reports with a brief description of their content.

Of course, management reports can be classified in different ways. In fact, it is not so important which specific classification will be used in each specific company. The main thing is that it is carried out and clearly recorded in the relevant regulatory documents.

As a rule, the classification of management reporting is contained in the Regulations on Management Accounting. Naturally, the classification of management reporting should be convenient for use in practice.

An example of a possible classification of management reports is presented at Figure 1. It should be noted right away that the names of report groups are not generally accepted. Each company, in general, can use its own classification of reports.

Fig.1. Classification of management reporting

Although certain standards have already been established regarding financial reporting. That is, in every company, regardless of its areas of activity, organizational structure, business processes, etc. Three financial statements must be prepared: an income statement, a cash flow statement and a balance sheet (see. Rice. 1).

This is necessary in order to control the financial and economic condition of the company. Typically, the primary users of financial statements are the owners and CEO of the company. It should be noted that the participation of the general director in the development of management reporting formats, at least financial reports, is a necessary condition for the success of the management accounting project.

This does not mean at all that the general director himself must develop formats, but he must consider the draft forms of management reporting proposed by the working group of the project on setting up management accounting and, naturally, must delve into the essence of these reports.

In fact, one of the reasons for the general director's indifference in such projects may be his habit of managing not by the system, but by his eyes. The financial director of one company, at the very beginning of a consulting project on setting up management accounting, complained to our team of consultants about the general director.

He said that if you tell the CEO that he must understand three financial statements, then, most likely, nothing will come of this venture. The financial director explained that he had been making similar attempts for several years, so to speak, to accustom the general director to the use of management reporting in managing the company, but for him even one report is a lot.

It really took us quite a long time to convince the CEO that it was simply impossible to achieve manageability of the financial and economic state, especially in rapidly growing companies, in any other way. Therefore, he and I conducted individual lessons, first to study financial statements, and then operational ones.

By the way, financial statements are so called because they contain only cost indicators. Financial statements, of course, can also contain relative indicators (for example, return on sales or return on assets), but these indicators are derived from cost indicators.

That is, in financial reports there are no indicators that are measured, for example, in pieces, kilograms, kilometers, etc. All financial statement items are measured in money. But in operational reports, in addition to cost indicators, there may also be natural indicators.

Objects of management accounting

Operational reports can actually consist of several groups (see. Rice. 1). In order to more easily understand the example of classification of management reports under consideration, you need to combine the classifier of management reporting with the classifier of accounting objects (see. Rice. 2).

Fig.2. Relationship between the classifier of management reports and management accounting objects

Financial reports are prepared for an object such as a company as a whole or for a group of companies, if we are talking about a holding company. By the way, preparing consolidated financial statements for a holding company can be quite a complex task.

If the holding consists of companies that are not connected with each other at the operational level, then the task of consolidating financial statements is solved quite simply. If business transactions are carried out between the companies of the holding, then in this case not everything is so obvious, because it will be necessary to take into account mutual transactions so as not to distort the data on income and expenses, assets and liabilities at the holding level in the consolidated statements.

So, financial statements provide information about the financial and economic condition of the company as a whole. But in order to understand why exactly the values ​​of the financial statements indicators were obtained, it is necessary to dive into a lower (operational) level. Lower-level management reports can be of different types depending on the accounting objects.

Among the lower-level accounting objects, business processes, projects and divisions can be distinguished. Moreover, projects can be divided into current and investment. The fact is that the current activities from which the company earns profit can be organized in different ways.

Some companies (process companies) make money by organizing a chain of regular business processes from procurement to sales, while others (project companies) make money by building a system for performing time-limited actions (projects). Process companies may include, for example, organizations engaged in mass production, or trading companies engaged in regular wholesale or retail sales.

Construction organizations are considered typical representatives of design companies, because they earn profit through the construction and sale of certain objects. The construction of such facilities in this case are ongoing projects. As a rule, all these objects are unique in their own way, so this type of activity cannot be considered as more or less typical as mass production.

In fact, recently there has been a growing tendency to blur the line between the process and project organization of current activities. For example, some manufacturing companies may operate on a job-to-order basis, which may be considered a project activity. And among construction companies there are those that regularly build more or less standard objects, for example, towers for cellular operators.

A company may have several hundred such more or less standard objects throughout the year. Nevertheless, the current activities of any company are more related to either process or project activities. This is the basis for the development of a classifier of management accounting objects and a classifier of management reporting.

Thus, a process company simply does not have such an object as current projects. But in addition to current projects, regardless of the organization of current activities, any company may have development projects. The goal of these projects is fundamentally different from the goals of current projects.

Current projects allow the company to earn profit from its existing potential, and development projects are intended to significantly change the company's potential, which in the future, naturally, should have a positive impact on the final financial and economic condition of the company.

So, to control the current activities of process companies, functional (process) management reports are used, which contain information on financial and economic indicators that characterize the effectiveness of the implementation of business processes. The number and composition of functional reports are determined individually in each company.

To monitor the current activities of project companies, management reports on current projects are used, which contain information on financial and economic indicators that characterize the effectiveness of the implementation of business projects.

To monitor the effectiveness of investment activities, investment reports are used, which contain information on financial and economic indicators that characterize the effectiveness of the implementation of development projects.

And finally, to monitor the work of financial responsibility centers (FRC), reports on FRC are used, which contain information on financial and economic indicators that characterize the performance of those divisions that have been assigned the status of FRC.

Note: the topic of this article is discussed in more detail at the workshop

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: main 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

Operations- 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 company 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 in 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 prepared 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. It's 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.

V.F. Paly Chapter from the book "Management Accounting of Costs and Income with Elements of Financial Accounting"
Publishing house "Infra-M", 2006

Internal management reporting is, along with the Chart of Accounts of management accounting, a system-forming element, the main ridge on which the entire management structure rests. Internal reporting is a set of ordered indicators and other information. It provides an interpretation of deviations from goals, plans and estimates, without which management accounting remains a formal accumulation of digital data unsuitable for internal management purposes.

Requirements for the construction and content of internal reporting, developed by science and practical experience, characterize the very essence of this element of management accounting. Moreover, both formal and substantive requirements matter.

We list the formal requirements for internal reporting with brief explanations:

• appropriateness - information summarized in internal reports must meet the purpose for which it was prepared;
• objectivity and accuracy - internal reports should not contain subjective opinions and biased assessments, the degree of error in the reports should not interfere with making informed decisions. Efficiency and speed of reporting cannot but affect the accuracy of information, but one should strive to minimize this factor;
• the efficiency of reporting lies in the fact that it must be submitted by the deadline when it is necessary for decision-making;
• brevity - reporting should not contain unnecessary, redundant information. The smaller the report, the more quickly you can comprehend its contents and make the necessary decision;
• Comparability of reporting lies in the ability to use reporting information for the work of different responsibility centers. Reporting should also be comparable with plans and estimates;
• targeting - internal reporting should reach the responsible manager and other interested parties, but subject to the degree of confidentiality established in the organization;
• efficiency - the costs of internal reporting must be weighed against the benefits of the management information received.

The purpose of internal reporting is to provide management personnel at all levels with the necessary management information. Requirements for the content of reporting should be formulated by heads of responsibility centers and other persons related to management personnel and interested in internal management information. Managers must explain to accountants and other performers who prepare internal reporting what information, in what form and volume, and within what time frame they need.

For managers, not only the content of information is important, but also the methods of its delivery, reporting forms, and well-written information. Internal reporting should provide a quick review and assessment of actual results, their deviations from the goal, identification of existing shortcomings today and for the future, and selection of optimal management decisions. Developing reporting that provides information to solve a set of problems is not easy. Satisfactory results can only be achieved through the joint efforts of managers and accountants, other economists, planners, etc.

Special requirements for internal reporting are as follows:

• flexible but uniform structure;
• clarity and visibility of information;
• optimal presentation frequency;
• suitability for analysis and operational control;
• Primary analytical information should be provided directly in the reporting forms: deviations from goals, norms and income estimates, ranking of deviations, etc.

A flexible but uniform structure of reporting information follows from the very essence of internal management and management accounting. Feedback and control information must have sufficient internal flexibility to respond to the changing goals and needs of responsibility center managers. At the same time, it is necessary to ensure information uniformity. The management accounting and internal reporting system cannot be in a state of permanent change. It can only change discretely due to significant changes in the nature of the organization's activities.

The flexibility and uniformity of internal management information is ensured by the fact that at the very primary level of registration the necessary amount of data is accumulated, which can then be selected and grouped in the required information context. If you fail to capture the necessary data at the data entry stage, you will subsequently have difficulty obtaining the information you need in each case.

The same applies to the grouping of costs. Each responsibility center wants reports containing information for its own purposes. The information system must be designed so that there is some uniformity of data for grouping and comparison. Accounting by definition strives for uniformity, as every accountant knows.

The clarity and visibility of information comes down to the fact that each reporting form should contain only the information that is necessary for this particular manager. Excessive detail of reporting information, its overload with many unimportant indicators makes it difficult to understand reporting, leads to the use in management of the wrong information that would allow finding the most correct decision. According to Parkinson's Law, the number of figures included in a report often exceeds the capabilities of the report.

So, excessive detail in reporting is the enemy of understandability, and therefore the effectiveness of reporting. The most significant examples of excessive detail are:

• the dimension of quantitative indicators has been brought to absolute accuracy. Instead of the volume indicator in the amount of 10,926,462 rubles. 18 kopecks you should write down 10,926 thousand rubles, or even 10.9 million rubles, which is much more visible than a detailed figure, the value of which is difficult to perceive;
• deviations are reflected literally in all respects. Deviation of 100 rubles. is given next to the deviation of 100 thousand rubles, as a result they can be understood as equal in size. Minor deviations scatter the manager’s attention and limit the understanding of information;
• report articles are detailed by the functions “sales volume”, “sales costs” without connection with types of products, market sectors, etc. In this situation, we have detailing “on the contrary”;
• many extraneous indicators that are not controlled by this responsibility center.

The optimal reporting frequency is a function of the purpose of the information and the decision-making capabilities, i.e. on the factors determining the use of reports in management. Some reports are needed more often, others less often. The frequency of internal reporting varies widely.

Internal reports may be annual, quarterly, monthly, weekly, daily, or as deviations occur. There is no need to increase the frequency of reporting if it is not possible to make a decision on the basis of such a report. If bonuses are paid to staff quarterly, then there is no point in monthly information about the fulfillment of bonus conditions. The aggregation of information and the frequency of its presentation are correlated. More frequent and more detailed reporting is needed at lower levels of management. With the transition to higher levels, reporting is presented less frequently and contains more aggregated aggregate indicators.

You should not think that all reports are needed on the third day after the end of the month. It all depends on the need to make operational decisions, on the need for additional information and explanations.

FORMS OF INTERNAL REPORTS

Based on internal reporting decisions are made at all levels of management of the organization. An important element in decision making is the time that passes from receiving a report to developing a decision and translating it into control actions. The accessible form of the internal report, the location and presentation of relevant information are essential. There cannot be a standard set of internal reporting with uniform forms and information structure. Internal reporting is individual. She rejects the formulaic approach. It is possible to identify classification characteristics that characterize general approaches to characterizing reporting forms (Fig. 1).

Complex final reports are usually presented for a month or for another reporting period (quarter, half-year, etc.) and contain information on the implementation of plans and the use of resources for a given period; are presented regularly and reflect income and expenses by responsibility center, execution of cost estimates, profitability, cash flow and other indicators for general assessment and control.

Thematic reports on key indicators are presented as deviations occur on the most important indicators for successful operation, such as sales volume, losses from defects, short deliveries on orders, production schedule and other planned indicators not included in the estimated ones, controlled by the responsibility center.

Analytical reports are prepared only at the request of managers and contain information revealing the causes and consequences of results on individual aspects of activity. For example, the reasons affecting the overuse of resources, the level of sales by market sector, a comprehensive assessment of the reasons for changes in profitability, analysis of the market and the use of production capacity, risk factors for activities in certain areas, etc.

Rice. 1. Classification of internal reporting

By management levels There are operational reports, current reports and summary reports. Operational reports are presented at the lower level of management in responsibility centers. They contain detailed information for making current decisions. Compiled weekly and monthly.

Current reports contain aggregated information for the middle level of management in profit centers, investment centers, and are compiled at intervals from monthly to quarterly.

Summary reports are presented to the organization's senior management personnel, on which strategic decisions are made and general control of activities and control of management personnel is carried out at the middle, sometimes at the lower level. Frequency ranges from monthly to annual reports.

Operational information intended for lower-level responsibility centers should not be presented unchanged to the highest level of management. The lower level is operational decisions on the coordination and implementation of production plans and the use of department resources. This information should be summarized and aggregated into more general indicators for presentation to the middle level of management. At the highest level, an even greater degree of generalization of information is required.

Example cost report for different levels of management of one of the organizations.

Note.“By estimate” indicates costs in terms of actual production volume; sign "!" deviations exceeding 4% were noted for this article.

By volume of information internal reports are divided into summaries, final reports, general (summary) reports. A summary is brief information about individual performance indicators of a department for a short period, sometimes per day, per week. Final reports are prepared for a month or other reporting period. They summarize information about the controlled indicators of a given responsibility center. General financial statements are prepared for the organization as a whole and contain information consistent with financial reporting forms adapted for internal management purposes.

By presentation form internal reports are compiled in tabular, graphical or text form.
Tabular form presentation of internal reporting is the most acceptable for both compilers and users.

Most of the internal reporting information is expressed in numerical indicators, which are most conveniently presented in tabular form. Everyone got used to it, it became traditional. It is necessary to properly structure the reporting indicators, divide them into zones, highlight the main ones that require special attention, and most importantly, try to present the report on one page without turning around.

For clarification, a note with comments and disclosure of key indicators may be attached to the report.

Graphic form is the most visual, you just don’t need to overload graphs and diagrams with unnecessary digital information, try to fit all the available information into one graph (diagram). Displaying more indicators on a given form makes it difficult to understand the information. Many numbers are more clearly presented in tabular form.

Text form presentation of information is acceptable in cases where there is no digital information or its volume is insignificant, but the relationship and significance of the information presented must be explained in detail. Text reports are often prepared in addition to reports in tabular or graphical forms.

Example internal report of the profit center, distributed into zones (in millions of rubles) for nine months of 2005.

Revenue			Variable costs			By month	Gross profit			Year to date
2004 fact	2005		2004 fact	2005			2004 fact	2005		2004 fact	2005
	plan	fact		plan	fact			plan	fact		plan	fact
7,3	7,9	7,1	4	4,6	4,0	January	3,3	3,3	3,1	6,0	4,9	4,9
7,8	7,7	7,2	5,1	5,6	5,4	February	2,7	1,6	1,8	9,2	7,9	7,9
7,6	8,3	8,3	4,4	5,3	5,3	March	3,2	3,0	3,0
6,9	6,9	7,0	4,4	5,5	5,0	April	2,5	1,5	2,0	11,7	9,4	9,9
6,0	7,4	6,0	5,2	4,6	4,8	May	2,2	1,4	1,2	13,9	10,8	11,1
7,6	8,0	7,6	5,4	5,8	5,3	June	2,6	1,8	2,3	16,5	12,6	13,4
7,0	6,7	5,6	4,2	3,8	3,3	July	2,5	1,8	2,3	19,0	14,4	15,7
6,9	6,3	7,9	3,7	5,8	5,4	August	2,6	2,1	2,5	21,6	16,5	18,2
7,6	6.9	7,8	4,2	5,0	5,4	September	2,7	2,8	2,4	24,3	20,6	19,3

Excel spreadsheet systems
with convenient analytics

Setting up initial (managerial) accounting is the creation of tools for obtaining information about the actual state of affairs in the business. Most often this is a system of tables and reports based on them in Excel. They reflect convenient daily analytics about real profits and losses, cash flow, salary arrears, settlements with suppliers or customers, costs, etc. Experience shows that a system of 4-6 easy-to-fill tables is enough for a small business.

How does this work

The specialists of the My Financial Director company delve into the details of your business and create an optimal system of management accounting, reporting, planning, and economic calculations based on the most available programs (usually Excel and 1C).

The work itself consists of entering initial data into tables and takes no more than 1-2 hours a day. To carry it out, 1-2 of your existing full-time specialists who do not have accounting skills are enough.

A system of tables can be organized with division of access to information. Only the director (owner) of the business will see the overall picture and the secret part of the data, and the performers will each see their own part.

The resulting automatic reports provide a picture with the required level of detail: cost and profitability separately by product line, cost summaries by expense groups, profit and loss statement, cash flow statement, management balance sheet, etc. You make decisions based on informed, accurate and operational management information.

In the Questions and Answers section you will find examples of a cash flow plan and a cash flow accounting system with accompanying reports.

IMPORTANT! You receive services at the level of an experienced financial director at the rate of an ordinary economist.

Teaching or conducting

We make sure to train your employees to work independently with tables. If you have no one to entrust this work to, we are ready to outsource your accounting. This is 2-3 times cheaper than hiring and maintaining an individual.

Guaranteed support and support 24/7

The work performed is covered by a guarantee. The initial accounting system is maintained in working order as long as you use it. If desired, you receive all the necessary consultations and clarifications.

If you want to change or add something, our specialists will make the necessary modifications, regardless of how long ago the service was provided. Contact us, the support service is available 24/7.

Where to start

Call +7 950 222 29 59 to ask any questions and receive additional information.

Download analyzes and reports in Excel format

An archive of example files for site articles on performing various tasks in Excel: analyses, reports, document forms, tables with formulas and calculations, graphs and diagrams.

Download examples of analyzes and reports

Telephone directory template.
Interactive contact directory template for business. Convenient management of a large contact database.

Inventory accounting in Excel free download.
The warehouse accounting software is created exclusively using functions and standard tools. No macros or programming required.

Return on equity formula "ROE".
A formula that displays the economic meaning of the financial indicator “ROE”.

Management accounting in an enterprise - examples of Excel tables

An effective tool for assessing the investment attractiveness of an enterprise.

Supply and demand schedule.
A graph that displays the relationship between two main financial quantities: supply and demand. As well as formulas for finding the elasticity of supply and demand.

Complete investment project.
A ready-made detailed analysis of the investment project, which includes all aspects: financial model, calculation of economic efficiency, payback periods, return on investment, risk modeling.

Shortened investment project.
A basic investment project, which includes only the main indicators for analysis: payback periods, return on investment, risks.

Analysis of the investment project.
Full calculation and analysis of the profitability of an investment project with the ability to model risks.

Gordon's formula graph.
Plotting a graph with an exponential trend line using the Gordon model to analyze investment returns from dividends.

Bertrand model diagram.
A ready-made solution for constructing a graph of the Bertrand model, which can be used to analyze the dependence of supply and demand under conditions of price dumping in duopoly markets.

Algorithm for decoding TIN.
Formula for deciphering the Tax Indicator Number for: Russia, Ukraine and Belarus.

All types of TIN (10 and 12-digit numbers) of individuals and legal entities, as well as a personal number are supported.

Factor analysis of variances.
Factor analysis of deviations in the marginal income of an enterprise taking into account the indicators: material costs, revenue, marginal income, price factor.

Time sheet.
Download a time sheet in Excel with formulas for auto-filling the table + maintaining reference books for ease of work.

Sales forecast taking into account seasonality.
A ready-made sales forecast for the next year based on the previous year’s sales figures, taking into account seasonality. Forecast and seasonality charts are attached.

Forecast of enterprise performance indicators.
Form for forecasting the activity of an enterprise with formulas and indicators: revenue, material costs, marginal income, overhead costs, profit, return on sales (ROS)%.

Work time balance.
A report on planning the working time of enterprise employees according to such time indicators as: “calendar time”, “time”, “maximum possible”, “attendance”, “actual”.

Sensitivity of the investment project.
Analysis of the dynamics of changes in results in relation to changes in key parameters is the sensitivity of the investment project.

Calculation of the store's break-even point.
A practical example of calculating the timeframe for breaking even for a store or other type of retail outlet.

Table for financial analysis.
The software tool is made in Excel and is designed to perform financial analyzes of enterprises.

Enterprise analysis system.
An informative financial analysis of an enterprise can be easily carried out using an analytical system from professional specialists in the field of economics and finance.

An example of a financial analysis of business profitability.
A table with formulas and functions for analyzing business profitability based on the financial indicators of the enterprise.

An example of how to maintain management accounting in Excel

Management accounting is intended to represent the actual state of affairs at the enterprise and, accordingly, make management decisions based on these data. This is a system of tables and reports with convenient daily analytics on cash flow, profits and losses, settlements with suppliers and customers, product costs, etc.

Each company chooses its own method of maintaining management accounting and the data needed for analytics. Most often, tables are compiled in Excel.

Examples of management accounting in Excel

The main financial documents of the enterprise are the cash flow statement and balance sheet. The first shows the level of sales, costs of production and sale of goods over a certain period of time. The second is the assets and liabilities of the company, equity capital. By comparing these reports, the manager notices positive and negative trends and makes management decisions.

Directories

Let us describe the accounting of work in a cafe. The company sells its own products and purchased goods. There are non-operating income and expenses.

An Excel management accounting spreadsheet is used to automate data entry. It is also recommended to compile reference books and journals with initial values.

If an economist (accountant, analyst) plans to list income by item, then the same directory can be created for them.

Convenient and understandable reports

There is no need to include all the figures for the cafe’s work in one report.

Let these be separate tables. And each one takes up one page. It is recommended to widely use tools such as “Drop-down lists” and “Grouping”. Let's look at an example of management accounting tables for a restaurant-cafe in Excel.

Income accounting

Let's take a closer look.

accounting, reports and planning in Excel

The resulting indicators were found using formulas (usual mathematical operators were used). Filling out the table is automated using drop-down lists.

When creating a list (Data – Data Verification), we refer to the Directory created for income.

Expense accounting

The same techniques were used to fill out the report.

Profit and Loss Statement

Most often, for management accounting purposes, the income statement is used rather than separate income and expense statements. This provision is not standardized. Therefore, each enterprise chooses independently.

The created report uses formulas, auto-completion of articles using drop-down lists (links to Directories) and data grouping to calculate results.

Analysis of the cafe property structure

The source of information for analysis is the Balance Sheet asset (sections 1 and 2).

To better perceive the information, let's make a diagram:

As the table and figure show, the main share in the property structure of the analyzed cafe is occupied by non-current assets.

Download an example of management accounting in Excel

The Balance sheet liability is analyzed using the same principle. These are the sources of resources through which the cafe operates.

Cost items

So we need a project budget, which consists of cost items. First, let’s create a list of these same cost items in Micfosoft Project 2016.

We will use custom fields for. We create a substitution table for a custom field of the Text type for the Resources table, for example, as in this figure (of course, you will have your own cost items, this list is just an example):

Rice. 1. Formation of a list of cost items

Working with custom fields was covered in the Microsoft Project 2016 Project Management Tutorial (see section 5.1.2 Milestone). For convenience, the field can be renamed to Cost Items. After generating a list of cost items, they must be assigned to resources. To do this, add the Cost Items field to the Resources view and assign each resource its own cost item (see.

Management accounting in an enterprise: example of an Excel table

Rice. 2. Assigning cost items to resources

Microsoft Project 2016 features allow you to assign only one cost item per resource. This must be taken into account when creating a list of cost items. For example, if you create two cost items (1. Salary, 2. Social security contributions), then they cannot be assigned to one employee. Therefore, it is recommended to group cost items so that one item can be assigned to one resource. In our example, you can create one cost item - payroll.

To visualize the budget in terms of cost items and time periods, the Resource Usage view is well suited, which needs to be slightly modified as follows:

1. Create a grouping by cost item (see Microsoft Project 2016 Project Management Tutorial, Section 2.5 Using Groupings)

Rice. 3. Creating a grouping of Cost Items

2. On the left side of the view, instead of the Labor Costs field, display the Costs field.

3. In the right part of the view, instead of the Labor Costs field, display the Costs field (by clicking on the right side of the mouse):

Rice. 4. Select fields on the right side of the Resource Usage view

4. Set a convenient scale for the right side, for example, by month. To do this, right-click on the table header on the right side.

5. Project budget example

As a result of these simple steps, in Microsoft Project 2016 we obtain the project budget in the context of specified cost items and time periods. If necessary, you can detail each cost item down to specific resources and tasks by simply clicking on the triangle on the left side of the Resource Name field.

Rice. 6. Details of project costs

Project S-curve

To graphically display changes in costs over time, it is common to use a project cost curve. The shape of the cost curve is typical for most projects and resembles the letter S, which is why it is also called the S-curve of the project.

The S-curve shows the dependence of the amount of costs on the timing of the project. So, if work starts “As early as possible,” the S-curve shifts to the beginning of the project, and if work starts “As late as possible,” accordingly, to the end of the project.

Rice. 7. Project cost curve depending on task deadlines

By planning tasks “As early as possible” (this is set automatically in Microsoft Project 2016 when planning from the beginning of the project), we reduce the risks of missing deadlines, but at the same time it is necessary to understand the project’s financing schedule, otherwise there may be a cash gap on the project. Those. the costs of our tasks will exceed the available financial resources, which poses the risk of stopping work on the project.

By scheduling tasks “As late as possible” (this is set automatically in Microsoft Project 2016 when planning from the end of the project), we expose the project to greater risks of missing deadlines.

Based on this, the manager must find a “golden mean”, in other words, a certain balance between the risks of missing deadlines and the risks of the project’s cash gap.

Rice. 8. Project cost curve in MS-Excel by downloading information from MS-Project

Drawing up an enterprise budget in Excel, taking into account discounts

The budget for the next year is formed taking into account the functioning of the enterprise: sales, purchasing, production, storage, accounting, etc. Budget planning is a long and complex process, because it covers most of the operating environment of organizations.

For a clear example, let’s consider a distribution company and draw up a simple enterprise budget for it with an example in Excel (an example budget can be downloaded from the link below the article).

Management accounting in an enterprise using Excel tables

In your budget, you can plan expenses for bonus discounts for customers. It allows you to model various loyalty programs and at the same time control costs.

Data for budgeting income and expenses

Our company serves about 80 clients. The range of goods is about 120 items in the price list. She makes a markup on goods of 15% of their cost and thus sets the selling price. Such a low markup is economically justified by intense competition and is justified by the large turnover (as in many other distribution enterprises).

A bonus reward system is offered to clients. Discount percentage on purchases for large customers and resellers.

The conditions and interest rate of the bonus system are determined by two parameters:

1. Quantitative limit. The quantity of a specific product purchased that gives the customer the opportunity to receive a certain discount.
2. Percentage discount. The size of the discount is a percentage that is calculated from the amount the client purchased when overcoming the quantitative limit (bar). The size of the discount depends on the size of the quantitative limit. The more goods purchased, the greater the discount.

In the annual budget, bonuses belong to the “sales planning” section, so they affect an important indicator of the company - margin (profit indicator as a percentage of total income). Therefore, an important task is the ability to set several bonus options with different boundaries at sales levels and the corresponding % bonuses. It is necessary that the margin be kept within certain limits (for example, not less than 7% or 8%, because this is the company’s profit). And customers will be able to choose several options for bonus discounts.

Our budget model with bonuses will be quite simple, but effective. But first, let’s draw up a report on the movement of funds for a specific client to determine whether it is possible to give him discounts. Pay attention to formulas that reference another sheet before calculating the percentage discount in Excel.

Drawing up enterprise budgets in Excel taking into account loyalty

The budget project in Excel consists of two sheets:

1. Sales – contains the history of the movement of funds over the past year for a specific client.
2. Results – contains the conditions for accruing bonuses and a simple account of the distributor’s performance, which determines the forecast of the client’s attractiveness indicators for the company.

Cash flow by clients

The structure of the table “Sales for 2015 by client:” on the “sales” sheet:

Enterprise budget model

On the second sheet we set the boundaries for achieving bonuses and the corresponding discount percentages.

The following table is a basic form of an income and expense budget in Excel showing the firm's overall financial performance for an annual period.

Structure of the table “Conditions of the bonus system” on the “results” sheet:

1. Bonus bar border 1. Place to set the level of the border bar by quantity.
2. Bonus % 1. Place to set a discount when crossing the first border. How is the discount for the first border calculated? Clearly visible on the “sales” sheet. Using the function =IF(Quantity > limit of 1 bonus bar[quantity]; Sales volume * percentage of 1 bonus discount; 0).
3. Bonus bar limit 2. A higher limit compared to the previous limit, which makes it possible to get a larger discount.
4. Bonus % 2 – discount for the second border. Calculated using the function =IF(Quantity > limit 2 of the bonus bar [quantity]; Sales volume * percentage of 2 bonus discount; 0).

Structure of the table “General report on the company’s turnover” on the “results” sheet:

Ready-made enterprise budget template in Excel

And so we have a ready-made enterprise budget model in Excel, which is dynamic. If the bonus limit is at the level of 200, and the bonus discount is 3%. This means that last year the client purchased 200 items. And at the end of the year he will receive a bonus discount of 3% of the cost. And if a client purchased 400 pieces of a certain product, it means that he has crossed the second limit of bonuses and already receives a 6% discount.

Under such conditions, the “Margin 2” indicator will change, that is, the distributor’s net profit!

The task of the head of a distribution company is to select the most optimal levels of boundary strips to provide discounts to customers. You need to choose so that the “Margin 2” indicator is at least within the range of 7% -8%.

Download the enterprise budget-bonus (sample in Excel).

In order not to search for the best solution at random, and to avoid making mistakes, we recommend reading the following article. It describes how to make a simple and effective tool in Excel: Data table in Excel and matrix of numbers. Using the “data table” you can automatically visualize the most optimal conditions for the client and distributor.

Stages of formation and preparation of management reporting

Important aspects when preparing management reporting: forms and examples. Management reporting is one of the most important sources of obtaining information about the company's performance, based on a set of financial, sales, marketing, production and other indicators.

Information in management reporting should be economically interesting and actively used by managers, founders and business owners. The data disclosed in management reporting is necessary for the analysis of all activities. This helps to timely identify the reasons for possible deviations from the parameters set by the business strategy, as well as show reserves (financial, material, labor, etc.) that have not been used by the company until this time.

Below are 7 stages of formation and preparation of management reporting.

Step 1. Diagnostics of the existing management system in the company

This stage is necessary to analyze the organizational structure of the company; the format of process modeling is determined. If the company has business process diagrams and their descriptions, these documents are analyzed and the main problem areas that require optimization are identified.

Diagnostic goals	Search for systematic approaches to increasing the efficiency of management reporting
Classification and analysis of existing reporting forms	According to presentation form- tabular, graphic, text; By business segment– purchase reports, sales reports, tax reports; By targeting of presentation- reports for management, reports for managers of the Central Federal District, reports for managers; By volume of information – operational reports on current projects, investment reports, final financial reports, summary (master) reports; By content - comprehensive reports, analytical indicators, reports on key performance indicators KPI.
Improving the quality and reducing the time required to obtain output analytical information necessary for making quality management decisions.	Analytical reports are of high value when they can be obtained in a short time and contain information in a form that best meets the needs of the employee who makes decisions based on this report.
Increasing the reliability of stored information.	To make decisions, you must rely only on reliable information. It is not always possible to understand how reliable the information presented in the reports is; Accordingly, the risk of making poor-quality decisions increases. On the other hand, if an employee does not bear official responsibility for the accuracy of the information entered, then with a very high degree of probability he will not treat the information with due care.
Increasing the analytical value of information.	A non-systematic approach to entering and storing information leads to the fact that, despite the fact that large amounts of information are entered into the database, it is almost impossible to present this information in the form of reports. Non-systematicity here refers to the input of information by employees without developing general rules, which leads to a situation where the same information is presented to different employees in a different form from each other.
Elimination of inconsistency and inconsistency of information	If there is unclear clarity regarding the division of responsibilities and rights between employees to enter information, the same information is often entered multiple times in different departments of the company. In combination with a non-systematic approach, the fact of duplication of information may even be impossible to determine. Such duplication leads to the impossibility of obtaining a complete report in the context of the entered information.
Increasing the predictability of obtaining a certain result	Decision making is almost always based on assessing information from past periods. But it often happens that the necessary information was simply never entered. In most cases, storing missing information would not pose any difficulty if someone assumed in advance that it would someday be needed.
Result	Based on the diagnostics and decisions made, job descriptions are finalized, existing business processes are reengineered, reporting forms that do not provide information for data analysis are eliminated, KPI indicators are introduced, accounting systems are adapted to obtain actual data, and the composition and timing of management reporting are fixed.

Step 2. Creating a management reporting methodology

This stage is necessary for delegating authority in terms of drawing up operating budgets and determining the responsibility of specific financial responsibility centers (FRCs) for drawing up certain budget plans (segments of management reporting).

Figure 1. Sequence of stages in constructing a management reporting methodology.

Goals and objectives solved as a result of the implementation of management reporting in the company:

• Establishing and achieving specific key performance indicators (KPIs);
• Identification of “weak” links in the organizational structure of the company;
• Increasing the performance monitoring system;
• Ensuring transparency of cash flows;
• Strengthening payment discipline;
• Development of an employee motivation system;
• Prompt response to changes: market conditions, sales channels, etc.;
• Identification of the company’s internal resources;
• Risk assessment, etc.

Composition of management reports depends primarily on the nature of the company's activities. As practice shows, the composition of management reporting (master report) usually includes:

• Cash flow statement (direct method);
• Cash flow statement (indirect method);
• Profit and Loss Statement;

Figure 2. Example of a management reporting structure.

Figure 3. Relationship between the classifier of management reports and management accounting objects.

Consolidation of budgets

The preparation of consolidated management reporting is a rather labor-intensive process. Consolidated financial management reporting considers a group of interrelated organizations as a single whole. Assets, liabilities, income and expenses are combined into a common management reporting system. Such reporting characterizes the property and financial position of the entire group of companies as of the reporting date, as well as the financial results of its activities for the reporting period. If the holding consists of companies that are not connected with each other at the operational level, then the task of consolidating management reporting is solved quite simply. If business transactions are carried out between the companies of the holding, then in this case not everything is so obvious, because it will be necessary to exclude mutual transactions so as not to distort the data on income and expenses, assets and liabilities at the holding level in the consolidated statements. The company's budget policy needs to consolidate the rules and principles for eliminating VGOs.

Therefore, it is more expedient to use information systems. For these purposes, you can use the “WA: Financier” system. The system allows you to eliminate intra-company turnover at the level of processing primary documents and quickly obtain correct information, which simplifies and speeds up the process of generating management reporting and minimizes errors associated with the human factor. At the same time, the reconciliation of intragroup turnover, their elimination, the execution of corrective entries and other operations are carried out automatically.

Example of management reporting: Company A owns Company B 100%. Company A sold goods for the amount of 1,500 rubles. The purchase of this product cost company A 1000 rubles. Company B paid for the goods delivered in full. At the end of the reporting period, Company B did not sell the product and it is included in its reporting.

As a result of consolidation, it is necessary to eliminate the profit (500 rubles) that the company has not yet received and reduce the cost of inventories (500 rubles).

To exclude VGOs and profits that Company B has not yet earned. Adjustments need to be made.

Result of management reporting consolidation

Figure 4. Forecast balance (managerial balance).

Determination of key performance indicators (KPI – Key performance indicators)

The introduction of key control indicators allows you to manage financial responsibility centers by setting limits, standard values ​​or maximum boundaries of accepted indicators. The set of performance indicators of individual central financial districts significantly depends on the role of this center of responsibility in the management system and on the functions performed. The indicator values ​​are set taking into account the company’s strategic plans and the development of individual business areas. The system of indicators can take on a hierarchical structure, both for the company as a whole, and with detail down to each center of financial responsibility. After detailing the top-level KPIs and transferring them to the levels of the Central Federal District and employees, staff remuneration, etc. can be linked to them.

Figure 5. Example of using key company indicators.

Control and analysis of management reporting and execution

For the execution of budgets included in management reporting, three areas of control can be distinguished:

• preliminary;
• current (operational);
• final.

Target preliminary control- this is the prevention of potential budget violations, in other words, the prevention of unreasonable expenses. It is carried out before business transactions are carried out. The most common form of such control is the approval of requests (for example, for payment or shipment of goods from a warehouse).

Current control budget execution implies regular monitoring of the activities of financial responsibility centers to identify deviations of their actual performance indicators from the planned ones. Conducted daily or weekly based on operational reporting.

Final control budget execution is nothing more than an analysis of the implementation of plans after the close of the period, an assessment of the financial and economic activities of the company as a whole and for management accounting objects.

In the process of executing budgets, it is important to identify deviations at the earliest stages. Determine what methods of preliminary and current budget control can be used in the company. For example, introduce procedures for approving requests for payment or release of materials from the warehouse. This will allow you to avoid unnecessary expenses, prevent budget failure and take action in advance. Be sure to regulate control procedures. Create a separate budget control regulation. Describe in it the types and stages of inspections, their frequency, the procedure for revising budgets, key indicators and ranges of their deviations. This will make the control process transparent and understandable, and will increase executive discipline in the company.

Figure 6. Monitoring the implementation of planned indicators of management reporting.

Step 3. Design and approval of the company's financial structure

This stage includes work on the formation of classifiers of budgets and budget items, the development of a set of operating budgets, planning items and their relationships with each other, and the imposition of types of budgets on the organizational units of the company's management structure.

Based on the organizational structure of the company, a financial structure is developed. As part of this work, financial responsibility centers (FRCs) are formed from organizational units (divisions) and a model of the financial structure is built. The main task of building the financial structure of an enterprise is to get an answer to the question of who should draw up what budgets in the enterprise. A correctly constructed financial structure of an enterprise allows you to see the “key points” at which profits will be formed, taken into account and, most likely, redistributed, as well as control over the company’s expenses and income.

Center for Financial Responsibility (FRC)– an object of the company’s financial structure that is responsible for all financial results: revenue, profit (loss), costs. The ultimate goal of any central financial institution is to maximize profits. For each central financial district, all three main budgets are drawn up: a budget of income and expenses, a cash flow budget and a forecast balance (managerial balance sheet). As a rule, individual organizations act as central financial districts; subsidiaries of holdings; separate divisions, representative offices and branches of large companies; regionally or technologically isolated types of activities (businesses) of multi-industry companies.

Financial Accounting Center (FAC)– an object of the company’s financial structure that is responsible only for some financial indicators, for example, income and part of the costs. For the DFS, a budget of income and expenses or some private and functional budgets (labor budget, sales budget) are drawn up. The DFS can be the main production workshops participating in unified technological chains at enterprises with a sequential or continuous technological cycle; production (assembly) shops; sales services and divisions. Financial accounting centers may have a narrow focus:

• marginal profit center (profit center)– a structural unit or group of units whose activities are directly related to the implementation of one or more business projects of the company, ensuring the receipt and accounting of profits;
• revenue center– a structural unit or group of units whose activities are aimed at generating income and do not include profit accounting (for example, a sales service);
• investment center (venture center)– a structural unit or group of units that are directly related to the organization of new business projects, the profit from which is expected in the future.
• cost center- an object of the financial structure of the enterprise, which is only responsible for expenses. And not for all expenses, but for the so-called regulated expenses, the expenditure and savings of which the management of the Central Bank can control. These are departments that serve the main business processes. Only some auxiliary budgets are drawn up for central planning. The auxiliary services of the enterprise (housekeeping department, security service, administration) can act as central control. Cost center may also be called Cost center (cost center).

Figure 7. Design of the company's financial structure.

Step 4. Formation of a budget model

There are no strict requirements for the development of a classifier of internal management reporting. Just as no two companies are exactly alike, no two budget structures are exactly alike. Unlike formal financial statements: profit and loss statement or balance sheet, management reporting does not have a standardized form that must be strictly followed. The structure of internal management reporting depends on the specifics of the company, the budget policy adopted by the company, the wishes of management regarding the level of detail of articles for analysis, etc. We can only give general recommendations on how to draw up the optimal structure of management reporting.

Figure 8. Scheme of interaction of budget forms using the example of the simplest budget model.

Classification of items using the example of a Cash Flow Statement

Figure 9. Execution of the cash flow budget (CF (BDDS)).

Step 5. Approval of budget policy and development of regulations

Budget policy is formed with the aim of developing and consolidating the principles for the formation and consolidation of indicators for these items and methods for their assessment. This includes: determination of the time period, planning procedures, budget formats, action program of each of the participants in the process. After developing the budget model, it is necessary to move on to regulating the budget process.

It is necessary to determine which budgets are formed in the company and in what sequence. For each budget, it is necessary to identify a person responsible for preparation (a specific employee, a central financial district) and someone responsible for the execution of the budget (the head of a department, a head of a central federal district), and establish limits, standard values ​​or maximum boundaries for the performance indicators of a central federal district. It is imperative to form a budget committee - this is a body created for the purpose of managing the budget process, monitoring its execution and making decisions.

Figure 10. Enterprise budgeting planning phases.

Step 6. Audit of accounting systems

At the stage of development and approval of the composition of the company’s management reporting, it is also necessary to take into account that the classifier of budget items must be sufficiently detailed to provide you with useful information about the company’s income and expenses. At the same time, you need to understand that the more levels of detail are allocated, the more time and labor costs will be required to compile management reporting, budgets and reports, but the more detailed analytics can be obtained.

It is also necessary to take into account that as a result of developing a management reporting methodology, adaptation of accounting systems may be required, because To analyze budget execution, planned indicators will have to be compared with available actual information.

Step 7. Automation

This stage includes work on selecting a software product, creating technical specifications, implementation and maintenance of the system.