Top Tips for Management Reporting
Good management reporting is essential for any business. These reports are crucial when it comes to analysis and making business decisions. Here are my top tips for getting good management reports using your accounting software.
Ensure Consistency in Allocations
When allocating transactions, it’s important to be consistent. For example, if you’re allocating a transaction to software subscription, make sure you do this across all transactions. If you change it up, you’ll end up comparing apples to oranges when you’re trying to get good reports. I often see people adding it one month to Bookkeeping Expense, one month to Software Expense, one month to Subscription Expense. Nothing is wrong with any of those categories but it has to be consistent.
Rigorous End of Month Process
Make sure you have a rigid and rigorous end of month process where you make sure everything is reconciled and nothing is out. If something is out, make sure you know the reason and that it will be fixed in the next month. Things happen and that’s ok, what is important is they are fixed and we learn from them.
Quality Control Checks
Have quality control checks in your Xero file. Whether you’re using an outsourced bookkeeper or doing it yourself, it’s important to have checks in place to make sure everything is accurate.
If your data entered into your accounting systems is off, you can’t possibly pull any reports that are useful. Basically garbage in, garbage out! By following these tips, you’ll be able to get good management reports and make sure your business is running smoothly.
If you are unsure if your reporting is right, perhaps it is time to consider a Health Check. We offer this as a once off service where we go over your books and provide a report to ensure you are on track, and if you are not, simple steps to get you back on track. A small price to pay for piece of mind. Read more here:
https://sumsubstance.com.au/health-check/
Want to watch Neha explain her management reporting tips? View this and her other helpful videos here:
