MIS Report : Definition, Type of MIS, Example and How to Prepare and Analyse MIS

What is MIS Report

The management needs MIS reports to evaluate the organization's performance and facilitate quicker decision-making. Understanding a management information system, often known as MIS, requires understanding each of the words that make up the name. The management, the information, and the system are all present. Such a system, at its core, is one that will give crucial information to the business management.

MIS Full Form is Management Information Statement

Why MIS Is Important For Businesses?

1. Business Performance Comparison‍

The MIS database houses and maintains the company's relevant business data and information. Since the MIS database is always accessible, it is possible to compare the companies present performance to its accomplishments from the prior year in order to understand the growth of the organization's

2. Researches Trends

Management must set future objectives and create forecasts for strategic planning. Therefore, precise reports on current industry trends are crucial for developing such a plan. The current market trend is analysed by MIS, which then makes predictions about future trends based on this data.

3. Helps in Identification of Issues

Information on every aspect of company activity is provided in a MIS report. As a result, MIS reports are quite useful in locating the problem's origin in the event that management encounters a problem. Additionally, MIS and reporting are quite helpful in identifying a remedy to such a problem.

4. Makes an Important Contribution To Strategic Planning

The company's strategic planning heavily relies on MIS reports. It assists in identifying the company's future requirements and in developing goals and a strategy based on those requirements. The management information system report is useful in determining the resources needed to achieve the company's goal. Therefore, it is crucial that the data generated by MIS and reporting is accurate and trustworthy.

5. Setting Goals

Setting goals is an important task for every firm, one that necessitates extensive study and growth. Since the data in MIS reports is based on recent data analysis, it is deemed appropriate and important for establishing an enterprise's purpose. The analysis of the present market trend and the forecast of the next trend are also included in MIS reporting. Therefore, it is challenging for any organisation to ignore MIS and reporting.

6. Enhance Efficiency

The company's goals and strategy are developed using the vital data provided by MIS and reporting. MIS reports can also be used to evaluate how well the company is performing. Therefore, MIS is essential for boosting a company's productivity.

Various Types of MIS Reports

• The Summary Report
• Trend Report
• Exception Reports
• Financial MIS report
• Inventory MIS report
• Sales MIS Report
• Budget MIS Report
• Fund Flow Statement report
• Actual Vs Budget MIS Report

How to Analysis MIS Report

Balance Sheet

• Working capital - It is just your current assets less your current liabilities. Finding out the operational liquidity that the company has available enables appropriate action to be taken.
• Accounts Payable/Receivable - The monthly pattern can assist in gaining insight into the near future. Increase in debtors, for instance, can help us comprehend outstanding debts that have not yet been paid. We can understand the rise in business cash outflow if the number of debtors is declining.

Income & Expense Statement

• ‍Trend analysis for MoM Income
  Differentiating the money from different sources can help us recognise the area where the firm does the most business, and the corporation can choose to leave out the area that does not contribute significantly to creating revenue.
  For instance: If sales are down from the previous months, the variables that are causing the decline can be found and either eliminated or lowered. And if sales have risen, the causes of the growth may be found and therefore addressed more effectively than before.
• Investigating MoM Expenses
  Depending on the product it is tied to and the income production of that product, variable business expenses may be lowered. For instance, if product X is making less money than its expenses, the corporation may opt to cancel it and save significant savings.
  Similar to that, if an expense is rising, the cause of the growth might be investigated. Every increase ought to be supported by a solid justification. For instance, if there is an unexpected increase in repairs and maintenance, it may be the result of a capital investment, such as the manufacturing of furniture, which should be allocated to the fixed assets section. Numerous accounting problems can be found during analysis.

Cash Flow Statements‍

Cash flow statements are classified into three types: Operating Activities, Investment Activities and Financing Activities.

• Operating Activities - The efficiency of a company's cost and stock management can be evaluated through operating activities. It highlights the level of expenditures a business must make in order to produce revenue, which is its primary objective. This aids in our understanding of operational liquidity, which will be useful if we ever experience a financial constraint.
• Investing Activities - You can gain insights into how a business might develop and generate more money through investing operations. If management is investing in the long-term health of the company, investing activities might not even be a bad indicator. Everything is dependent on the potential return on investment.
• Financing Activities - Both the company's debt suppliers and investors depend on its financing activity. The enterprise's finance efficiency is calculated in reflection of these actions. It demonstrates the organization's capacity for fund-raising and money management.

FAQ on MIS Report

Que - What are different type of MIS reports?
MIS reports differ from organisation to organisation and from department to department. Inventory, summary, and sales reports are just a few of the different forms available for MIS reports.

Que - What details are included in the MIS report?
In large businesses where daily record keeping is necessary, MIS reports are highly helpful. They often contain all pertinent data pertaining to day-to-day business operations, including sales, wages, and staff performance.

Que - How to create an MIS report ?
MIS reports are frequently created using a step-by-step procedure. Setting the report's aims and objectives is the first step in the process. The information required to compile the report is then gathered and put into an accessible format. Finally, a clear analysis and presentation of the data is made.

Que - What is an MIS report?
A management information system report is known as a MIS report. It is a report that has data that will help managers in their decision-making. Accurate data from a MIS report is essential for monitoring a company's development.

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