Management reporting: a source of information for monitoring, analyzing and making effective business management decisions

This article discusses the main aspects of the formation of management reporting: a source of information for monitoring, analyzing and making effective decisions on business management. The role of information in the modern business world is steadily increasing. In entrepreneurial activity, business success depends on the quality of economic information, which is expressed in profit and capital growth. In order to make investment decisions, select clients, suppliers, and other business partners, the completeness and reliability of information provided by internal management reporting is necessary. Management reporting is a system of interrelated indicators that characterize the conditions and results of the company’s activities or its constituent elements over the past period of time. Reporting is the final stage of the accounting process, therefore it consists of summarizing the final indicators, which are obtained at the end of the reporting period with the help of appropriate processing of current accounting data. Reporting can contain both quantitative and qualitative indicators, both in value and in kind.