Adam Trew
Alerts, Pilot GO

Good management reporting processes provide the tools for stakeholders and/or key personnel to facilitate meaningful discussion, make informed decisions, and assist in achieving key business objectives.

These tools often come in the form of reports that are prepared and supplied in a timely manner after a reporting period ends.

The reports are tailored to provide information and data on the key drivers of the business, often referred to as Key Performance Indicators (KPIs).

How does the process work?

Figure 1 – Expenses as % of Fees

KPIs ultimately serve as performance measures to help achieve key business objectives.

For a professional services firm a KPI may be ‘billable hours per month’ or for a medical practice it may be ‘number of patient consultations per month’. These are examples of ‘non-financial’ KPIs. KPIs can also be ‘financial’ such as a measure of the Total Monthly Expenses as a percentage of Total Monthly Revenue, or a current ratio indicator to measure an entity’s ability to pay short term obligations. There are many options and they will vary from business to business.

Once KPIs have been identified and KPI targets set, the final task is to compile all of this information into a report that is prepared on a regular basis (usually monthly or quarterly). Remember these reports are just the tools to facilitate meaningful discussion amongst the decision makers. How did you perform against budget? What decisions or processes will you implement now to improve the business moving forward? This is critical and it can mean the difference between a great management reporting process or a poor one.

Is it a lot of work to set up and maintain?

Thankfully, there is management reporting software available that will integrate with a wide range of accounting software providers.

Once the template has been set up and the files linked, the data can be updated automatically from period to period. The new reports would then be generated on a monthly or quarterly basis.

The software also offers a wide range of other reporting options including three way reporting or forecasting and tailored dashboards that will allow you to quickly see how your business is performing. See example report shown in Figure 2 below.

Figure 2 – Cash Movements Summary


Pilot GO

Pilot GO advisors have one goal – to help you grow your business with confidence. Our team of specialist advisors will help you streamline and automate tasks while giving you access to business insights and real-time data to make better business decisions.

Learn more

If you would like to learn more about cloud based accounting solutions, please contact Adam Trew or phone 07 3023 1300.