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MIS Reporting

What is MIS Reporting ?

Management information systems (MIS) provide organizations with the ability to take quick and informed decisions based on cash flows, sales, financial reports, on-demand reports, inventory reports, and much more. MIS reports should always focus on any organization’s key performance indicators (KPIs). With accurate and up-to-date MIS reports, organizations can track their actual performance against their desired outcomes, identify areas of improvement, and make changes accordingly.

What is the need for an MIS report for an organization?

As the name suggests, MIS consists of information the management needs to be aware of. These reports provide a comprehensive view of operations performed at all levels in an organization. MIS reports help the management assess the business’s financial health, track business operations across various departments, analyze issues that arise, make effective decisions, and adopt innovative methods to ensure improved productivity.

 

Types of MIS Reports in Accounts Outsourcing

Usually, MIS reports are prepared daily, monthly, quarterly, and yearly. Every company has unique requirements, hence various types of MIS reports. As multiple departments in an organization prepare MIS reports, they outline their respective functions. We summarized the common types of MIS reports with their examples:

 

  • Summary Reports (inventory summary)
  • Trend Reports (sales trend)
  • Exception Reports (understocked or underperforming inventory)
  • On-Demand Reports (specific product in a particular season)
  • Budgeted and Actual Profit Reports (P & L)
  • Predictive Reports (predicted sales or production vs actual sales or production)
  • Financial Reports (monthly, quarterly, and yearly financial health)
  • Sales Reports (comparison of previous year’s sales vs present)
  • Inventory Reports (comparison of inventory sales)
  • Production Reports (predicted vs actual products manufactured)
  • Cash Flow Statements (inflow vs outflow)
  • Other Reports

 

What are the major components of MIS?

There are 5 major components of MIS namely: People, Data, Business Procedures, Software, and Hardware. Each of these components interacts with each other meaningfully to generate an effective MIS report. Let’s discuss their relationship with MIS Reports in detail.

  • People: Includes all the people who use MIS to interact with the business. This can be managers, employees, executives, also people who interact indirectly: people who supply raw materials.
  • Data: Different types of information are collected from various departments to compile data and input it into the system.
  • Business Procedures: Defined set of procedures on how organizations record, store, and analyze the report and data from various sources.
  • Software: An MIS report is obtained from various departments, hence large volumes of data. The software component includes spreadsheets, databases, and programs that are utilized to collect, store, analyze data, and prepare reports.
  • Hardware: Certainly, any organization has equipment such as printers, networking systems, infrastructure, workstations, servers, etc. These are the kind of hardware components that make it to the MIS reports.

 

What is the significance of an MIS Report?

An MIS report is crucial to make informed decisions and ensuring the smooth functioning of an organization. MIS reports include recent trends in business, raw business data, patterns, reference points, previous comparisons competition data, and more to churn out beneficial insights on developing business productivity. As an MIS report is an important report which enables the growth of the organizations it must be accurate, complete, cost-effective, user-focused, relevant, authoritative, and timely.

Advantages of MIS Reporting

The main advantage of generating MIS reports is it enables the management to create a more robust and smart strategy. Below are to name a few:

  • Operational quality: Let’s take an example of a convenience store, the store can take the information from the MIS, Predictive Report, which provides what product has been sold in what period based on the comparison between 2 of the previous years’ sales reports. This enables the store to automatically place an order to restock that item before they run out of stock.
  • Better decision-making: As discussed in the earlier sections, MIS is generated with the help of various departments. This enables the management to make informed decisions as they have a bird’s eye view of the issues, latest market trends, competitors’ analysis, and more.
  • Developing new business models: Once the management understands the bottlenecks or the customers’ needs the management can develop a new and effective marketing strategy that will improve product sales and customer service quality.
  • Improved Communications: As all the departments share the same information, there is better communication between the teams in recognizing problem areas and finding mutually agreeable solutions.