Reporting

Definition

Reporting is the process of preparing and presenting financial and non-financial information to assist managers in decision-making. It involves summarizing data in a way that is useful for internal company purposes.

5 Must Know Facts For Your Next Test

1. Reporting provides essential information for managerial decision-making.
2. It can include both financial and non-financial data.
3. Reports are typically tailored to meet the specific needs of managers.
4. Timeliness and accuracy are critical components of effective reporting.
5. Managerial reporting is more flexible and detailed compared to financial reporting aimed at external stakeholders.

Review Questions

• What types of data are included in managerial reporting?
• Why is timeliness important in managerial reporting?
• How does managerial reporting differ from financial reporting?

Related terms

Financial Accounting: The process of preparing financial statements for external stakeholders according to standardized rules.

Managerial Accounting: The practice of using accounting information to help managers make informed business decisions.

Internal Reports: Documents prepared within an organization to provide specific insights into various aspects of the business for internal use.