Beyond the financial statements is a need for answers to questions that go beyond simple financials and into data from other systems.
Simple answers are good, but the value comes when you get details that help explain the simple answers to complex questions.
Use answers and details from managerial accounting reports to guide your future business decisions.
Managerial Accounting Reports Details
Many business details are found in financial reports and understood through financial statement analysis. Beyond the financial statements is the golden nuggets of insight that come through managerial accounting reports. These reports extract data from systems to gain answers, details, and guidance to hard business questions.
Good questions often bring more questions and this is the case with financial statements. For example, high-level sales trends can be found in financial statements, but deeper questions require correlating data from Customer Relationship Management systems, inventory systems, payment systems, and / or marketing systems. Such questions could include:
- Who are the most productive sales people in relationship to salary?
- What is the best channel for my highest margin product?
These answers are only found in understanding the financial data across various business and financial systems.
Besides big answers, you may want additional details on information just below the surface of your financial statements. A common detail is gross profitability by job or customer which involves gathering all of the time and material and correlating it to sales for that customer.
These answers and details ultimately bring guidance for future decision making. Such guidance might be when to hire a new employee or a better understanding of where to focus your sales efforts. Our experts will help you build and understand managerial accounting reports that can bring you the guidance you seek.