Everything You Need to Know About MIS Report in Accounting
Entrepreneurs make new business decisions every day but each decision may have certain risks and as the business grows the risk increases. If you are working with large revenues, big sales opportunities, multiple clients and hundreds of jobs, the decision-making process may often turn into a gamble. To avoid treating each decision as a gamble, you need to completely understand your position, opportunities and threats to your business. This is where the Management Information System (MIS) reporting becomes crucial for you.
An effective MIS Report is essential for businesses to identify problems, pressure points, and bottlenecks. Accounting firms in Dubai can help businesses to prepare robust MIS reports. Entrepreneurs should not ignore the significance of MIS reports as they provide them with a summarised and bulletin view of different verticals that need to be monitored for the effective functioning of their business. Read ahead to know everything about MIS reporting in accounting:
What is a Management Information System?
MIS reports are all about your organisation’s daily operations. It can be basic figures such as the number of clients you are currently servicing, the number of sales calls your team is making or the amount of revenue brought in last month. MIS reports can also include complicated analytical data showing business development, market trends, supply chain variabilities etc. MIS simply includes all the data that can be used to have a better understanding of the present state of your business.
How does a Management Information System Work?
MIS collects data from various sources such as your staff, systems, clients etc. and merges the sources to create readable information. It can include reports, flowcharts, graphs, figures etc. that accurately demonstrate the progress of your business, the trends of the market and the potential gaps in your processes. MIS reports won’t tell you exactly what to do but give you the means to make informed decisions. Consult with accounting firms in Dubai to prepare effective MIS reports.
What are the Types of Management Information System Reports?
The commonly used MIS reports fall into the below categories:
All types of MIS reports used by the accounting department fall into this category. Profit reports and income statement reports are some of the common MIS reports created and managed by the accounting department of a company.
The Finance MIS reports are created and used by the finance department of a company. Reports such as financial and fund statements fall in this category.
Inventory MIS reports deal with manufacturing, stock management, and order reports. Inventory MIS reports helping you to compare goods and machinery that are procured, sold, and bought, for manufacturing.
MIS reports falling under this category provide information related to management control such as statistics, costing, budget, sales etc. This category of MIS reports is essential for the efficient management of logistics in your business.
The Importance of Garbage in, Garbage Out Concept
Garbage in Garbage Out (GIGO) is a well-known computer terminology that applies to accounting MIS reports. The GIGO concept is generally used to suggest that faulty or meaningless input data would result in nonsense data or information. In the case of MIS reports, if the accounting segments are not matched with charts of accounts properly, you will not get the proper reports. Similarly, if there is no system to qualify sales leads, then you won’t get MIS reports with proper categorization of sales leads. Accounting firms in Dubai can help you with creating proper MIS reports.
Why Should Companies Use MIS Reports?
Accounting firms in Dubai suggest businesses use MIS reports for the following benefits it offers:
- Setting goals becomes easier for your business by using MIS reports
- It can help you to calculate the working hours of your staff or the functioning hours of a machine
- MIS reports generate accurate reports the management can rely on to make good business decisions
- MIS reports help to eliminate errors that might occur during manual entries
- MIS reports help the management to properly and systematically collect all the records and documents
- MIS reports save your time while managing loads of financial and operating information of the company
- MIS reports help you to ensure a proper and effective flow of information across the organisation
- MIS reports reduce the complexities of business information management
- MIS reports help users focus on specific information without getting distracted by unnecessary details
- MIS reports can help in increasing the efficiency of the machinery and workforce as you can track everything including sales, inventory, production, and cash flows to profits, losses, etc.
Consult with the Best Accounting Firms in Dubai for MIS Assistance
Creating effective MIS reports is critical for entrepreneurs to make the right business decisions, and identify problems to resolve them. Accounting firms in Dubai such as Jitendra Chartered Accountants (JCA) can advise companies on how to create and manage accurate MIS reports. JCA is one of the top providers of accounting firms in Dubai that can advise you on all critical accounting requirements. JCA’s services also include audit, VAT compliance, corporate tax advisory, ICV certification assistance, corporate finance, ESR, UBO & AML-CFT compliance. JCA has helped thousands of companies to stay on top of their accounting and we can make a difference in your business as well.