MIS REPORTS
MIS means Management Information System, which assists a business firm in detecting the bottleneck areas, errors, and red flags which may affect the firm. MIS helps the firm to analyze the data collected and study it thoroughly to formulate strategical solutions for the problems identified.
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MIS means Management Information System, which assists a business firm in detecting the bottleneck areas, errors, and red flags which may affect the firm. MIS helps the firm to analyze the data collected and study it thoroughly to formulate strategical solutions for the problems identified.
In the simplest terms, an MIS report can be described as a system that provides important information for the management of your company. MIS collaborates with people, technology, and business processes within an organization. It also describes how the relationship with other organizations and people affect your company.
MIS reporting is concerned with the analytical reporting on basis of informational data received related to the business. It covers the overall aspects of the firm in addition to its financial statements and provides a crystal-clear picture to management which enables them to facilitate decision making.
WORKING OF MIS REPORT
- Usually, the MIS reports of different types may be prepared periodically which can be weekly, monthly, half-yearly, or annually.
- The MIS report may include the report of the different departments which may be provided to the management and present them with significant insights into the working of the various departments.
- The MIS report collects all the data such as statistical, raw business data, recent trends in the business, etc. and it simplifies such data and presents it systematically.
- It also includes the following components which are important for its smooth functioning: – people, data, hardware, software, and business procedures.
DOCUMENTS REQUIRED TO DESIGN MIS REPORTS
Financial Statements: Financial statements, including the balance sheet, income statement, and cash flow statement, serve as fundamental documents for MIS reporting. These statements provide a snapshot of the organization’s financial performance, liquidity, and overall health.
Sales and Revenue Data: Accurate sales and revenue data is vital for MIS reporting. This includes sales invoices, sales orders, customer receipts, and any other relevant documents that capture the organization’s revenue generation. These documents help track sales trends, analyze customer behavior, and evaluate the effectiveness of sales strategies.
Expense Records: Expense records are essential for tracking and analyzing the organization’s expenditure. These records can include invoices, receipts, and payment vouchers related to various expenses, such as utilities, rent, salaries, marketing, and supplies. Proper categorization and documentation of expenses ensure accurate expense analysis and cost management in MIS reports.
Inventory and Stock Reports: For organizations dealing with inventory or stock, accurate documentation of inventory data is crucial. This includes records of stock levels, purchase orders, delivery notes, and inventory valuation reports. These documents provide insights into inventory turnover, stock availability, and overall inventory management.
Project Reports: In organizations that undertake projects, project reports serve as valuable inputs for MIS reporting. These reports include project timelines, milestones achieved, resource allocation, and progress updates. They help evaluate project performance, track costs, and analyze the overall project portfolio.
Customer Data and Feedback: Customer data, such as customer profiles, purchase history, and feedback, provides valuable insights for MIS reporting. This information helps identify customer preferences, trends, and satisfaction levels. It enables businesses to enhance customer experiences, target specific customer segments, and improve overall customer retention and loyalty.
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IMPORTANCE OF MIS REPORT
MIS reports are crucial for the smooth functioning and growth of your company. Here are a few key points that highlight the importance of an MIS report
- The first significant advantage that the MIS provides is, it generates accurate reports that the management can rely on to make specific decisions without any hesitation.
- It helps in the elimination of errors and mistakes that may occur during manual entries and it also provides accurate reports with maximum efficiency which increases the confidence of the management in the MIS reports.
- MIS reports are used to collect data from various sources. These include employees, management, documents, executives as well as the raw numbers for business sales. All of these are beneficial for identifying and solving problems within your company.
- They can help in making important decisions.
- It helps the management to properly and systematically collect all the records and documents of the firm and it also helps the firm to save time while managing loads of financial and operating information of the firm’s business.
- MIS reports help in ensuring the proper and effective flow of information across the whole firm and its departments through which the management can easily identify the source of any information and it can also set accountability on its employees.
- The data collected from the above-mentioned sources is then visualized. This includes presenting the data in the form of bars, graphs, and charts. This provides ease of analysis and helps to gain faster insights from the available data.
- An MIS report also helps to track a company’s financial growth and financial health. It is often used to track, analyze, and report business income.
- An MIS report also serves as an effective tool for communication between employees and their employers.
IMPORTANCE OF MIS REPORT
- The Summary Reports- Summary reports are a type of MIS reports used to visualize aggregate data and provide a summary. This summary could be of different business units, different products, different customer demographics among other things. The report is presented in a format that can be understood by the company’s management.
- The Trend Reports- Trend Reports are types of MIS reports that allow your company to see the trends and patterns among different categories. Trend reports are also used to compare different products or services. They are often used to draw comparisons between the actual versus the predicted output/growth within an organization. These reports help to pinpoint the problem areas in a company and give potential solutions to them.
- The Exception Reports- An exception report is a type of MIS reports that is an aggregate report of exceptions, which are abnormal or unusual circumstances within a company. The exceptions report will collect instances of all such conditions within different departments in your company, and present them to the management in a uniform format. Exceptions reports are useful for catching problems early, and solving them before they cause a major disruption.
- On-Demand Reports- The on-demand report is a type of MIS reports that are produced on specific demands from your company’s management team. There is no fixed criteria or format that must be included in an on-demand report. This type of MIS report includes the requirements of a company and the prevailing circumstances will dictate the contents of an on-demand report.
- Financial Reports- Financial reports are types of MIS reports that can be used to determine the financial condition of an organization. A financial report often includes a company’s balance sheets, income, and expense details, and cash flow statements. Financial reports are used by your company’s financial analysts, investors, the board of directors, and even government units to access the overall financial health of your organization. These reports are used in making critical financial decisions within a company.
- Inventory Reports- Inventory reports are a type of MIS report that is used to manage and keep a track of all the products in your inventory. The inventory report includes details about the number of products left in stock, the best selling products, the top-selling categories of products and how they vary by demographic, etc. Inventory reports can help your business to make smarter, data-driven decisions.
- Sales Reports- The sales report is prepared by the marketing and sales division of your organization. It includes a visualization of products that have been sold during the last quarter/month in your organization. The sales data is often visualized by taking into account the budgeted and actual sales numbers. It provides an insight into the sales variance (the difference between the budgeted and actual sales), the geographical distribution of products sold, and the timeline of sales among other factors.
- Budget Reports- Organizations operate on a variety of budgets. These may include cash budgets, income v/s expenditure budgets, marketing budget, HR budget, production budget, etc. An MIS budget report contains internal information about your organization. It is used to maintain your company’s financial health while driving growth.
- Production Reports- Production report is a types of MIS report that contains information about the raw production numbers in your company. The manufacturing division within your company will prepare this report, and provide details of the production
- Cash Flow Statements- Cash flow statements are a Types of MIS report that underlines the exact amount of cash inflow versus the cash outflow in your organization. The cash flow statements include the cash flows from your company’s operations (the core business), investments (capital investments), and financing(external investors). These are together referred to as your company’s ‘net cash flow‘. Cash flow statements are very important to maintain a profitable business.
- Report on The Ideal Time- This report is prepared by your company’s manufacturing division by comparison of data on the ground level. This report states the time spent by your company’s workers in different jobs, and the time they spent idle because the resources could not be allocated. Time booking records are used to prepare these reports.
- Cost Reports- Various departments in your organization will prepare cost reports relevant to their operations. These cost reports provide different types of information to your managers. These reports also help your company’s management to aggregate costs across departments and have clear insights into the total expenditure.
COMPONENT OF MIS REPORT
An MIS report is not a stand-alone entity. It includes several components, which interact with each other in a meaningful way. The major components on an MIS report are as follows:
- People- These include the people (a.k.a the users) of an information management system. Users of an MIS system include the company employees, managers, executives, and people who indirectly interact with your organization (for example, people who supply raw materials for your manufacturing process).
- Data- This includes data collected from varied sources within an organization. This data is used for making critical business decisions, marketing analysis and target predictions.
- Business Procedures- Business procedures specify how the data is collected, analyzed and stored within your organization. This procedures are used to outline the implementation of your company policies in a step-by-step manner. Examples include your company’s hiring and onboarding process, manufacturing procedures, and procedures for day-to-day operations.
- Hardware- These include all the hardware components that are used within your organization. Examples include the servers and workstations which store data, network routers and equipment, printers, xerox machines etc.
- Software- The software components include the programs which are used to process and handle the data in your organization. These may include spreadsheets, database management systems (eg. SQL and NoSQL), and data visualization tools (example. Tableau and Power BI). The software usage may vary in your organization, depending upon the tasks to be achieved.
FAQs FOR MIS REPORT
Q1. How Do You Prepare An MIS Report?
- Gather raw data from various departments.
- Determine the structure of the report.
- Determine the headings of rows and columns.
- Segregate and sort data under respective headings.
- Filter and remove data that is not relevant to the MIS report or decision-making.
Q2. What are five types of the MIS reports?
Types of MIS Reports
The Summary Reports. Summary reports are a type of MIS reports used to visualize aggregate data and provide a summary.
- The Trend Reports.
- The Exception Reports.
- On-Demand Reports.
- Financial Reports.
Q3. How do I report MIS in Excel?
- Accumulate all the raw data/information.
- Clean the data, remove any noise from the data, and filter the information that you need.
- Create a separate sheet for your data repository so that you can refer to it while creating reports.
Q4. What is MIS report and its types?
The types of MIS include summary reports, inventory reports, cash flow statements, and predictive data reports. They differ according to the information required. An example would be a company needs to track the performance of its sales team.