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As a business owner, you gather information all day about how your business operates. You observe workers, check your bank account balance and communicate with customers. You review financial reports such as income statements and balance sheets. In addition to these standard reports, you may be tracking data about operations, sales and employee performance.
Unlike financial reporting, this type of management reporting is voluntary, and doesn't need to use standardized accounting principles. Financial Reports You must create financial reports, such as profit and loss statements and balance sheets for tax reporting, but they're also useful for management because they show whether or not you're earning or losing money, and how you're spending or saving it.
Your income statement provides the clearest synopsis of your business activity during the time frame it covers. It shows how much revenue your company has taken in, how much is spent and how much is left over at the end of the day.
Your balance sheet shows how much your business owns and how much it owes at a specific point in time. It gives an overview of how you used the money you earned or how much you borrowed to cover losses. A cash flow statement shows how you manage the money available to you over time, how much you spend on operations, how much you dedicate toward paying off debt and how much flexibility your budget allows.
Sales and Marketing Reports Sales and marketing reports show your strengths, weaknesses and opportunities, relative to your different product lines and revenue streams. This information isn't required for tax forms, but it is critical to your management team when making decisions about where to invest marketing and operations resources.
Sales and marketing reports can show where your products are the most successful, and at what times of the month or the year. This information can help you build the right inventory so you have enough on hand. It also tells you when you can make the most out of your marketing budget by getting the word out when customers are most likely to want your offerings, or cultivating interest at times when business is typically slow.
Operations Reports Reports that compile information about company operations help your management team to see where work is flowing and where you can improve on inefficiencies. A report showing how much time and materials go into producing each product shows which items earn you the most income.
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Figures about how much your employees produce per person per hour can help you to identify weak points in the manufacturing process and workers who do not perform well.
You can collect data and create operations reports about just about any aspect of your business. They'll be most useful to your management team if you start by posing useful and relevant questions.Title Length Color Rating: Relationship between Unions & the Event Management Industry - At the recent Dreamforce conference field trip we were able to see the grand, towering exhibit displays and booths.
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Operations planning and control; Work scheduling; Quality management (e.g., TQM) it is advisable to study one or more college textbooks, which can be found in most college bookstores.
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