Why Management Information System (MIS) and Reporting is so important for your business?

MIS and Reporting

MIS is a set of procedures that provides essential data and information on the current activities of the company, to the management for quick, informed, and complex decision making. The MIS involves the followings.

• Collection of appropriate data from various reliable sources.
• Processing of such data to extract the relevant and useful information.
• Delivering the information.

MIS report of a company is prepared after proper analysis of current data, and recent trend prevalent in the market. The corporate environment is dynamic involving uncertainties and risks that drive business organizations to take complicated decision to survive in the market.

Importance of the MIS and Reporting

The MIS plays a crucial role in improving performance, productivity, and profitability of the organization.

At the beginning of the year, you have some idea of where you want the business to go. You set up goals for sales, establish product profit margins, figure how much credit the company will need from the banks, create performance standards, and so on.

Now, the job is to guide the business toward achieving those objectives, and the MIS provides the reports that allow you to keep the business going on.

Advantages of the MIS and Reporting

Storing, and maintaining crucial business data and information: The critical data and information is stored in an organized manner, and can be accessed for decision making.

Coordinating sales: The sales are coordinated with the production schedules.

Analyzing market trends: The current market trend is analyzed, and the future trend is predicted based on such information by using various mathematical tools, and the accurate and reliable reports on prevailing market trends are available to determine the future needs of the company for the formulation of goals, and strategic planning.

Identifying resources: Information on the resources required to meet the company’s objective are identified, and are available.

Identifying problems: Information related to every aspect of the company activities are available, and in case any problem arises the reports are quite helpful in identifying the source of the problem.

Increasing efficiency: The performance standards are created, and the business owner is alerted to deviations from those objectives in time to take corrective actions.

Comparing business performance: The relevant business data and information stored and maintained are used to compare the current performance with that of the previous year to measure the growth of the company.

How is the MIS and Reporting applied?

The MIS identifies and collects data on all the important metrics of the operations of a company. For example, the MIS can provide the followings.

• Data on the sales, customer profitability, and degree of market penetration.
• Information on the product cost analysis, scheduling plans, and raw materials inventory levels.
• Reports about productivity, the number of sick days taken, and payroll budgets.

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