Management Reporting and Budgeting Advisory Services

Our approach to management reporting

Identifying management's needs

Determining the data sets to be presented in the report according to management's needs and objectives is important for the efficiency of the analyses used to assess performance, and ensures that the data that matter to management are highlighted in the report.

Designing the content of the management report

One of the most important stages of the management reporting process is identifying and structuring the detailed analyses to be included in the report.

In management reporting, measuring operational data alongside financial data, and linking those data to the financial results they relate to, makes it possible to measure performance and take proactive decisions.

Elements such as profitability and cost analysis by product/service, cash flow management, analysis of variances between budget and actual figures, and scenario analyses form the baseline for planning future periods and provide more reliable guidance on the company's journey towards its goals.

Designing the data flow

For the management report to produce fast and reliable results, the data and sources feeding it must be analysed to ensure they are adequate for the need. A link should be established between the systems in which these data are generated and held and the management report, so that the report receives the data it needs.

Setting up reporting processes

Having the management report ready on time depends on people's effort as well as on systems. At the same time, the report must be prepared on a consistent basis so that it allows comparison. A "Management Reporting Manual" should be prepared, defining processes such as the basis of preparation of the data flowing into the management report and who will prepare the data and within what time.

Reconciling the management report with the financial statements

Reconciling the financial information presented in the management report with the company's financial statements ensures transparency and consistency by linking the financial data that management uses to assess the company's performance with the financial information the company presents to its stakeholders.

Digitalising the management report

Presenting the core components of management reporting, such as profitability and cost analysis by product/service, cash flow management and scenario analyses, in a single dashboard supported by visuals through a digital reporting approach gives decision-makers the information they need in one digital environment and allows them to drill down to identify root causes quickly. Digital reporting can be achieved by implementing the management report, designing its visuals and building the dashboard structure on a platform provided by SFAI or another platform of your choice.

How can ARSEN / SFAI Türkiye help you?

• Understanding management's existing reports and identifying its needs, then designing and implementing the infrastructure, content and level of detail of the management reports

• Developing management reporting by establishing the interaction/correlation between operational KPIs and financial KPIs

• Budget vs actual comparisons

• Designing customised management reports such as profitability analysis by product/service and cash flow management

• Building scenario analyses (exchange rate sensitivity, price sensitivity, cash flow scenarios, etc.)

• Reviewing the suitability of the data infrastructure and systems

• Designing a management reporting infrastructure and templates consistent with consolidated reporting and suited to the group structure

• Preparing a Management Reporting Implementation Guide

• Implementing the management report on a platform provided by SFAI or another platform of your choice

• Designing the visuals of the management report and building the dashboard structure