Evaluating the Necessity of Your Manufacturing Reports

Jun 16, 2015

In today’s world, there are many unnecessary and frivolous items. Yet, there are many items in which we couldn’t live. Some things are lifesaving and others are just really unique items that make our lives so much easier. How many times have we seen an item that is so neat and we didn’t even know we needed it but wondered how we lived without it? I often wonder, why didn’t I think of that!

Reporting is not something you cannot live without, however, I would argue your business cannot live without reports. What kinds of reports? Are your reports lifesaving or unnecessary? Have you thought about it?

At my last seminar I taught, one of the participants spoke about his process when he started a new position. He would connect with each person who was currently receiving a report and ask if they report was essential. To his surprise, most people replied “no”.

We often generate reports because it is a process we have always done. If you’ve read any of my posts you know that I have said before (and I’ll say it again) make sure the reports are worth something! Reporting on the right thing at the right time can be lifesaving; reporting on the wrong thing or unnecessary reports may not be deadly, but certainly a waste of valuable time.

I challenge you to go around and talk to those that are receiving reports and ask them for what they use the report. Determine if there anything which is missing or would make the report more essential. Go one step further and provide additional information to those receiving reports. Maybe there is some data they never knew they truly required. Something that is so useful and beneficial to them, yet did not even cross their mind. This I believe is the true role of a good cost accountant.

Reports are key to ensuring you have relevant information to act on at any given time. They really are what can keep everything moving, but just blindly giving reports because that is what you have always done is not the strategic and can waste valuable time and money.

Categories: Cost Accounting