Accounting & Bookkeeping

Management Report

Management report, which means a report in accounting is a document that provides detailed financial information and analysis to help management make decisions about the business.

A management report is a comprehensive document that includes:

REPORT	DEFINITION
Profit & Loss	Also called an ‘Income Statement’, contains the company’s revenue & expenses (Revenue - Expenses = Net profit / Net loss)
Balance Sheet	Breakdown of all the company’s assets/liabilities, and equity (Asset: Fixed assets, cash, bank, inventory) (Liabilities: Loan, accounts payable, accrued expenses, taxation) (Equity: Share capital, retained earnings)
Trial Balance	A bookkeeping worksheet showing the closing balance of all accounts is in balance
Bank Reconciliation	The summary of banking accounts that reconciles with financial record
Debtor Aging / Creditor Aging	Summary of the outstanding balance owed by the debtor (customer) / owed to the creditor (supplier)
General Ledger	Breakdown of record company’s all transaction data

The accountant will compile the management report containing the above report, to present it to the director and shareholder during the board meeting. Here is a simplified guide to understanding your report:

Define the revenue (total income generated by business/interest /investment income)
Understand the cost of goods sold (represents the direct costs of producing goods or services that a company sells)
Calculate the gross margin (To show the gross profit after deducting from total revenue)
Understand the expenses (represents the indirect costs of maintaining the business running)
Determine the net profit (After deducting all expenses from revenue, this reveals the overall profit/loss your company has incurred during the specified period)

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