MIS Reports or Management Information System Reports provide important information for the management of a company. These reports are created internally with an aim to describe how the relationship with other organizations and people affect the company.
MIS reports are prepared by various departments within the organization and presented to the company’s management team. These reports highlight day-to-day business activities and provide critical insights into decision making, enabling the core team to make informed decisions, pinpoint and avoid problems, capitalise on current market trends, monitor progress & business management, and external communication.
Basically, MIS reports focus on raw data, trends, patterns within datasets, and relevant comparisons.
To cite the relevance of MIS reports in a startup, take a look at this example.
If a new product is to be launched, the MIS report will provide insights into current market trends and personae. These data points will help make better decisions and improve the company’s performance in both short-term and long-term.
Importance of MIS Reports
- Used to collect data from various sources, including employees, management, and executives. Also, data is collected from business sales. These data points are crucial for identifying and solving internal problems, and scaling growth
- Help in making informed managerial decisions
- MIS Reports that are visualized in the form of bars, graphs, and charts provide ease of analysis
- Help to track a company’s financial growth and health, which can further be leveraged to track, analyze, and report business income.
- An effective tool for communication between employees and their employers
Components of MIS Reports
An MIS report is not a stand-alone entity; rather It includes several components that interact with each other in a meaningful way.
- Users: Users of an MIS system include the company employees, managers, executives, and people who indirectly interact with your organization
- Data: Data collected from varied sources within an organization 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 the organization. They outline the implementation of company policies in a step-by-step manner
- Software: Software components include programs that are used to process and handle the data in the organization. These may include spreadsheets, database management systems and data visualization tools
Types of MIS Reports
MIS reports range from company to company, depending on the requirement. Different data points are aggregated and presented in a format that provides clear insights and conclusions. The various departments in an organization present MIS reports which outline their department’s specific functions. There can be different types of MIS reports based on which data is being analyzed and what it is being used for.
- Summary Reports: Used to visualize aggregated data and provide a summary. This summary could be of different business units, different products, different customer demographics amongst other thing
- Trend Reports: These reports pave a way for the company to see the trends and patterns among different categories. Trend reports are generally also used to compare different products or services (between the actual versus the predicted output/growth). These reports help in pinpointing problem areas and identifying potential solutions.
- Exception Reports: These reports are an aggregate report of exceptions that are abnormal or unusual circumstances within a company. Exceptions reports are useful for catching problems early, and solving them before they cause a major disruption.
- On-demand Reports: Produced on specific demands from the management team. These reports don’t have any specific criteria or format.
- Financial Reports: Used to determine the financial condition of an organization by aggregating balance sheets, income, and expense details, and cash flow statements.
- Inventory Reports: Used to manage and keep a track of all the products in the company’s inventory. The report includes details about the number of products left in stock, best-selling products, top-selling categories of products and how they vary by demographic, etc.
- Sales Reports: These reports include visualization of products that have been sold during the last quarter/month to provide an insight into the sales variance, the geographical distribution of products sold, and the timeline of sales, amongst other factors.
- Budget Reports: Organizations operate on a variety of budgets including cash budgets, income v/s expenditure budgets, marketing budget, production budget, etc. Budget reports are used to keep a track of the company’s financial health while driving growth.
- Production Report: These reports contain information about the raw production numbers in the company, and whether production targets were achieved or missed.
- Cash Flow Statements: These statements underline the exact amount of cash inflow versus the cash outflow in your organization
- Funds Flow Statements: These statements give insights into the various sources of funding within the company, and how that funding is being utilized.
- Budgeted and Actual Profit Report: This report highlights the difference between the company’s actual and budgeted profit within the specified time frame. Prepared by the accounts department, this report includes an analysis and reasoning of why the actual profits might be less/more than initially budgeted.
- Predictive Reports: These reports are used to predict the outcome or the circumstances for your company in the near future, and can be very crucial for informed decision making.
- Cost Reports: These help the company’s management to aggregate costs across departments and have clear insights into the total expenditure.