8 Financial Reporting and Management Reporting Systems

Financial
Reporting and
Management
Reporting
Systems
Bulacan Date Developed:

BACHELOR OF SCIENCE IN February 2021
ACCOUNTING Polytechnic Date Revised: Page 1 of 9
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Document No. Developed by:
IAIS 223 Sarah Joy D. Martin Revision # 01
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MODULE CONTENT
COURSE TITLE: FINANCIAL ACCOUNTING AND REPORTING 1
MODULE TITLE: Financial Reporting and Management Reporting

Systems
NOMINAL DURATION: 3 HRS (NO. of Hours per topic)
SPECIFIC LEARNING OBJECTIVES:

At the end of this module you MUST be able to:
1. Demonstrated thorough knowledge on the vision, mission, goals

and objectives of the College and of the BSAIS Program.
2. Apply the analytical tools necessary to evaluate users' accounting

information needs.
3. Apply the principles that support the design, implementation,

and maintenance processes of an accounting information system
to typical situations faced by practicing accountants.
4. Identify the security and internal controls required for an

accounting information system, particularly with the Internet
and e-commerce environments.
5. Apply traditional flowcharting and data-flow diagramming as the

basis for designing an accounting information system.
6. Demonstrate the application of theory to the design and

management of relational databases associated with accounting
information systems.
TOPIC: (SUB TOPIC)

1. Introduction
2. Literal review and methodology
3. Transaction support in sql

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REFERENCE/S:
1. Board of studies NSW, Stage 6 Information Processes and Technology,
Preliminary and HSC Courses (2007, page 14)
2. Gerhard Weikum, Gottfried Vossen, Transactional information systems:

theory, algorithms, and the practice of concurrency control and
recovery, Morgan Kaufmann, 2002, ISBN 1-55860508-8
3. Jim Gray, Andreas Reuter, Transaction Processing — Concepts and

Techniques, 1993, Morgan Kaufmann, ISBN 1-55860-190-2
4. Philip A. Bernstein, Eric Newcomer, Principles of Transaction

Processing, 1997, Morgan Kaufmann, ISBN 1-55860-415-4

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5. Information Sheet
IAIS 223 -8
Financial Reporting and Management Reporting Systems
Learning Objectives:
After reading this INFORMATION SHEET, YOU MUST be able to:
1. To understand primary information flows within the business
environment
2. To understand accounting information systems and management
information systems
3. To understand the general model for information systems
4. To understand financial transactions from non-financial
transactions
5. To understand the functional areas of a business
Reporting of any kind provides, at a basic level, similar benefits to an

organization, regardless of the kind of reports being created. These documents
and visualizations of data are leaned on by business leaders when making
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strategic decisions that affect not just entire departments, but also the
organization as a whole—especially when it comes to financial and management
reporting and analysis.
At a publicly traded company, these reports are also relevant to

shareholders when quarterly disclosures are made public. Reporting is essential
to tracking performance throughout an organization, evaluating progress toward
business goals, and ensuring that the right decisions are made to guide the
company toward future success.
Financial reporting and management reporting both share this common

ground, and they even have some overlap in the data used to generate them. But
from a strategic point of view, these reports have crucial differences that need to
be understood by both business decision makers and the finance professionals
tasked with report generation.
Here’s a look at the differences between financial reporting and

management reporting, as well as some guidance to help you maximize the value
of these assets.
What Is Financial Reporting?
Financial reporting is primarily focused on rendering information for

external purposes, such as providing information to regulators and other
authorities. But financial reports can also be generated to inform internal
strategy, although internal financial reporting documents will typically look
much different—and feature different data—than the financial reports supplied
to external parties.
These reports cover basic financial and accounting information related to

your business, including P&L statements, balance sheets, accounts payable and
receivable, and cash flow statements. These reports can cover various time

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frames depending on the purpose of the report, as well as the requests of the
external parties. For quarterly reports to shareholders, for example, financial
reports will cover a three-month time frame.
In many cases, financial reports are required to ensure compliance with

certain laws or regulations. Or, if you’re applying for credit from a bank, these
financial reports are requested to evaluate the financial health of your
organization and determine your creditworthiness.
From a strategic perspective, traditional financial reports offer limited

value in guiding decision-making because the data tends to be too outdated and
too general to offer valuable insights for business leaders. Modern financial
consolidation tools might be changing this dynamic, though, because real-time
consolidation of data, as well as automated reporting processes, now makes it
possible to create financial reports that detail the latest available financial data
for your business.
What Is Management Reporting?
Compared to financial reporting, management reporting offers better

visibility into your company’s performance and financial health—not just as a
whole, but also across individual departments. Management reporting and
analysis can provide greater depth of insights, including the ability to segment
and analyze data according to a wide range of criteria and filters.
Similarly, the data featured in these reports is more specific to a company’s

operations. Instead of general accounting data used to represent the company’s
financial health, management reporting makes use of key performance
indicators, including metrics used to assess a company’s return on investment
(ROI).

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Management reports are internal documents, and they almost always
include information that is confidential and not prepared for public
consumption. Regardless of whether you use other types of financial reporting
to inform your business strategy, management reports will always be a central
asset—and they will almost certainly outweigh financial reports in terms of
the influence they have on your strategic decision-making.
When it comes to creating management reports, it’s important to make

sure they are collecting information that is relevant to a business decision maker.
Whereas financial reports are inherently simplistic in terms of the data they
render, management reports are more open-ended. It’s impossible to include all
of an organization’s business data in a single report, so reports must be
generated with information that is relevant to the subject of that report.
If, for example, you’re a sales leader looking to demonstrate your

department’s ROI success over the previous quarter, you need to create a
management report that features only information that is relevant to the subject
of your presentation. The task of choosing appropriate data will play an
important role later on, when we discuss how to create reports that your
stakeholders will love.
Which Type of Reporting Should You Use?
The short answer is both. Financial reporting is an essential process for

enterprise organizations. Like it or not, your accounting professionals must
make sure these reports are developed and made available according to existing
regulatory guidelines.
Management reporting isn’t required in the same way. But as far as your
company’s long-term success is concerned, it might as well be a mandatory
process. The insights gained from management reporting and analysis are

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crucial to making informed decisions that steer your company in the right
direction.
Management reports can also feature more future-focused data points that
support scenario planning and other long-term forecasting. Any well-run
business will be eager to get its hands on this information to make smarter
decisions that support efficiency, productivity, and fiscal responsibility.
Best Practices for Creating Financial and Management Reports
There’s a difference between creating a report and creating a great report

that offers value to key stakeholders. Reports are created to be read and
understood by others, so it doesn’t hurt to put extra effort into making sure these
reports are going to make a strong impression on their target audience.
With that in mind, here are some best practices for creating high-impact
financial and management reports:
 Create reports that offer eye appeal. Key stakeholders are people—and
they’re often busy people. Dry, text-heavy reports can risk losing their
attention, or frustrating them as they search for the information they need.
A well-designed report can make it easy to navigate this information to
quickly find whatever they’re seeking.
 Use automation to build reports with the most recent available
data. Automated processes are a great way to speed up the report-creation
process. The less time it takes for reports to be created, the faster they can
be delivered when requested by stakeholders—all while featuring the latest
available data, thanks to real-time consolidation of data pulled from across
your organization.
 Integrate graphics and visual elements to improve
comprehension. Break up large blocks of text with graphics and other
visuals that serve as a focal point, help organize content, and provide a
visual representation of important or complex information.
 Make reports more accessible with point-and-click design. Using a
dedicated designer is nice, but it also takes time that slows down report

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creation. With point-and-click design, financial team members can
generate reports and deliver them on a tight timeline.
 Create multiple reports to address operations and finances from
multiple perspectives. With the time and cost savings of automating
report creation, it’s easier to create multiple reports that serve specific
purposes for different strategic objectives. This gives stakeholders better,
more specific information to guide decision-making across multiple fronts.
With these best practices in place, you can create reports that not only fulfill
reporting obligations but also deliver more value to your entire organization.
Conclusion
Financial reporting and management reporting are both necessary to the

financial health, and well-informed leadership, of any business. But there are a
wide range of potential outcomes when it comes to generating reports that meet
their objectives and deliver the right information to key stakeholders.
Whether your reports are being generated for internal or external use, or
to inform regulators, banks, shareholders, or business leaders with the latest
information regarding the company’s finances and operations, it’s smart to
create reports that organize information in a visually friendly, easy-to-read
format.

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Financial

Bulacan Date Developed:

COURSE TITLE: FINANCIAL ACCOUNTING AND REPORTING 1

MODULE TITLE: Financial Reporting and Management Reporting

NOMINAL DURATION: 3 HRS (NO. of Hours per topic)

SPECIFIC LEARNING OBJECTIVES:

1. Demonstrated thorough knowledge on the vision, mission, goals

2. Apply the analytical tools necessary to evaluate users' accounting

3. Apply the principles that support the design, implementation,

4. Identify the security and internal controls required for an

5. Apply traditional flowcharting and data-flow diagramming as the

6. Demonstrate the application of theory to the design and

TOPIC: (SUB TOPIC)

Bulacan Date Developed:

2. Gerhard Weikum, Gottfried Vossen, Transactional information systems:

3. Jim Gray, Andreas Reuter, Transaction Processing — Concepts and

4. Philip A. Bernstein, Eric Newcomer, Principles of Transaction

Bulacan Date Developed:

Reporting of any kind provides, at a basic level, similar benefits to an

At a publicly traded company, these reports are also relevant to

Financial reporting and management reporting both share this common

Here’s a look at the differences between financial reporting and

What Is Financial Reporting?

Financial reporting is primarily focused on rendering information for

These reports cover basic financial and accounting information related to

Bulacan Date Developed:

In many cases, financial reports are required to ensure compliance with

From a strategic perspective, traditional financial reports offer limited

What Is Management Reporting?

Compared to financial reporting, management reporting offers better

Similarly, the data featured in these reports is more specific to a company’s

Bulacan Date Developed:

When it comes to creating management reports, it’s important to make

If, for example, you’re a sales leader looking to demonstrate your

Which Type of Reporting Should You Use?

The short answer is both. Financial reporting is an essential process for

Bulacan Date Developed:

Best Practices for Creating Financial and Management Reports

There’s a difference between creating a report and creating a great report

Bulacan Date Developed:

Financial reporting and management reporting are both necessary to the

Bulacan Date Developed:

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