MDT Business Consulting

What is Financial Reporting
     Financial Reporting involves the disclosure of financial information, generally in the form of                    statements, prepared in compliance with appropriate accounting guidelines. These statements              indicates how the company is performing over a specific time frame.

What is Management Reporting
     Management Reporting involves the disclosure of factors that may or may not be financial in                nature but ultimately impact the financial performance of the business. These factors will differ              from business to business and industry to industry, some examples are:

  • Labor utilization
  • Staff turnover
  • Inventory levels
  • Customer complaints
  • Warrantee claims
  • Project/job gross margins & departmental margins
  • Budget to actual variances
  • Accounts receivable aging
  • Sales lead to order secure ratio
  • Level of repeat business
  • Return on investment

Benefits of effective Financial & Management Reporting

  1. Provide information regarding the financial health of the company.
  2. Help Management engage in effective decision-making.
  3. Help ensure the business is operating at maximum efficiency.
  4. Provide the ability to identify operational inefficiencies.
  5. Better management of resources.

Are your Reporting systems working effectively

  1. Is your Reporting system capturing the relevant information and in understandable language for the user?
  2. Is the reporting timely?
  3. Is the reporting at an appropriate level (right level of detail for the level of user)?
  4. Is the reporting comparable in presentation - does it reflect trends, does it compare to industry or other benchmarks, does it compare to target?
  5. Are there too many manual processes involved, too many adjustments on a monthly basis?
  6. Do you know the profitability of providing various goods/services lines/projects within your business?
  7. Do you know how much the supports services are costing the business?
  8. Are existing reports still used/relevant or have they just been around forever?
  9. Are Ad-Hoc requests for information easily met or painful/too slow?

Approach to improve your Reporting

  1. Develop an understanding of what is currently being generated (and when).
  2. Develop an understanding of what would be appropriate.
  3. Develop a Gap Analysis.
  4. Develop a Plan to close gaps.
  5. Ensure proper buy-in and training.
  6. Implement the Plan.