Management Information
SME's may think that it is not essential to collect and analyse data before they are fully established, but as the business becomes more established, management information is crucial to succeeding.
What is management information?
Management information is an umbrella term used to describe the data that a business collects, specifically the data that will be utilised to drive the business forward and grow from strength to strength.
The data used for management information will vary between businesses and industries, but some examples of information that is generally used by most businesses include Profit and Loss Statements, Balance Sheet, and Cash forecasting.
What are the benefits of improving your financial management information?
Management Information is crucial for making business decisions, as it allows you as a business owner to remove guesswork and make informed decisions that may impact your company's future. With no guarantees in an uncertain economy, it helps to accurately know where your business has been before making plans for the future.
Additionally, looking back over the performance of your company can help to highlight areas for refinement and ultimately lead to improved efficiencies.
What management information should SMEs be focusing on?
It goes back to the saying 'quality over quantity', there is so much information associated with running a business but it is not beneficial to collect all the data for MI. It is vital to narrow down the information you are collecting to just the data that will assist you with making business decisions.
Management Information Systems (MIS) can collect the information from multiple sources to create graphs and reports to help you run your business. Your MIS system will be set up to gather information relevant to your business specifically and will differ from other businesses, however some examples of data that most businesses will be focusing on are:
Financial data, including cash flow forecasts, profits and budgets
Sales information, including best-selling products and customer base
Productivity information, including average time it takes to complete a task or product
How does the Finance People help with management information?
Gathering the data required for management information can seem daunting, but support is available with The Finance People. Our fractional CFOs, part-time finance managers and other financial experts have an abundance of experience with management information and are on hand to help, with flexible options available.
Get in touch for a complimentary consultation to discuss how we can help your business.
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