What Is The Purpose of Your Reporting?
May 03, 2016
As accountants, we are naturally good at reporting data. Do you ever take a moment to consider how many items you report on a daily basis? Weekly? Monthly? More importantly, do you know why such information is essential?
During the seminars I teach, I ask participants if they were to stop providing the data in their reports would others notice? It’s always interesting to observe the room as they ponder that thought. What would your answer to that question be?
Decision makers require specific information to analyze situations and ultimately make quality decisions about the future of the business. However, the key is have the right information and the right reports. Timing and accuracy are essential. Reporting on factory rent every hour is pointless. Reporting on material usage every month may be too late.
It is your job as the individual providing the key information to know and recognize what the end user requires to complete the circle. Take the time to discuss what they are looking for and how you may adjust your reporting to achieve success. Ultimately, you want your leadership to be able to take action and make the right decisions.
I challenge you to think about what you are currently doing and take the time to audit your process. Meet with the end user to gauge their needs. Be open to modifications. Analyze your system and generate what is needed, not what has always been done.
Categories: Cost Accounting