mis report
26

Aug 2022

MIS report in full form is Management Information Systems Report. The management uses these reports to gauge how the organization performs so it can make intelligent decisions. MIS reports are a computerized database of a company's financial information designed to produce regular reports from various departments and divisions.

 

MIS Reports provide important information to the higher management and usually involve collecting data from different reliable sources, and then processing the information that will be shared with their respective divisions.

Need for MIS Report

MIS Reports are prepared and created to provide management with reliable information about their business operations and the current market trend. These reports enhance the organization's productivity, profitability, and overall performance. 

These are some of the reasons why companies need MIS Reports:

  • Business data needs to be maintained and managed to help management make complex, more deliberate, thoughtful decisions.
  • MIS Reports are necessary for analysing trends to make it easier for the management to prepare forecasts and determine the business goals for the future.
  • Help in strategic planning; this is about creating specific business strategies, implementing them, and measuring the results.
  • The company management can set goals with information from the MIS Reports.
  • With MIS Reports, problems can be easily identified, including the source and the appropriate solutions.
  • The organisation, including its management, employees can become more efficient in discharging their duties.
  • Can easily compare the current and past performances since the data are stored in the MIS database that is very accessible. The company's growth can be measured by comparing the previous year's achievement with the present.

Types of MIS Reports

There are as many types of MIS Reports as there are units and sectors within a business. 

For example, total sales for the past year would be helpful to Marketing and Sales; reports on production, inventory, and shipping can go to Warehouse Division; and Finance and Accounting need revenue and business expenses.

Here are the types of MIS Reports:

   1.   Sales Reports:

Shows the budgeted sales and the actual sales made during a specific period. It also includes the complete analysis of products sold in the geographical areas.

   2.   Budget Reports:

Let the organisation's management compare their spending with what was budgeted for.

   3.   Production Reports:

Shows the production target successfully achieved by the department/division.

   4.   Cash Flow Statements:

Financial statements show aggregate data regarding all cash inflows received from its ongoing operations and cash outflows when cash flows out of business.

   5.    Income Statements:

Financial reports summarise the company revenues, expenses, and profits/losses over a period.

   6.   Machine Utilization Report:

Gives the details of machine hours utilised for various job assignments and the number of hours when the machines were idle.

   7.   Financial Statements:

A set of documents, including a balance sheet, shows the company's financial status at a specific time.

In addition to the above MIS reports, many other reports and statements can be used, like the Cost Reports, Statistical Publications, Daily Production reports, Orders on Hand, and others.

Components of MIS Reports  

MIS Reports comprise five major components: People, Business Processes, Data, Hardware, and Software. All of these should be working together for the achievement of business goals:

  • People

Qualified professionals (Human Resource managers, Accountants, etc.) record daily transactions and use the information to generate the report. The ICT (Information and Communication Technology) department sees that their support staff can guarantee that the system runs properly. 

  • Business Procedures

These best practices are being accepted as being correct or most effective. These procedures guide the users and the other components in working efficiently. 

  • Data

Data are the day-to-day transactions of business, as recorded by the users. The banking industry collects data from such activities as withdrawals, deposits, etc.

  • Hardware

These are the devices such as computers, networking devices, printers, etc, where computing powers come from in processing data; and providing printing and networking capabilities. This component makes data converted into information more quickly.

  • Software

These programs and other operating information run on the hardware and have 2 categories. Systems Software refers to operating systems such as Windows, Mac OS, and others. Application Software is specialised software for business tasks such as payroll programs, point of sale, and banking systems.

How to Generate MIS Reports  

The following steps will help you learn how to create Management Information Systems Report.  

  • Step 1 - Collect the data from different departments/divisions of the company, like Sales, Marketing, Production, Financial, Logistics, etc.
  • Step 2 - Combine these data. Clean them up with Excel, SPSS, R, or other data management software.
  • Step 3 - Apply various tools, data analyses, or formulas according to your need. Make sure that you have a backup of those data in or at some other place.
  • Step 4 - Make sure to validate your results. Find out whether they are correct or not.

Example of MIS Reports (in Excel)

Component Manufacturer Country of Origin Quantity Unit Price Total Price
Motherboard MSI China 50 $200 $10,000
CPU AMD Vietnam 55 $340 $18,700
Monitor LG China 154 $200 $30,800
SSD Samsung S Korea 65 $150 $9,750
HDD Toshiba Japan 12 $65 $780
Cooler Toshiba Japan 35 $45 $1,575
USB Hub Baseus China 25 $10 $250
RAM Toshiba Japan 95 $70 $6,650
PSU Apollo China 45 $70 $3,150
Mouse Logitech China 37 $85 $3,145

Conclusion

MIS reports provide an overall perspective of an organisation's revenue generation, orders, customer queries, employee performance, improvements, losses, and others. These reports compare the targets planned with the targets achieved. This covers a particular period. This will be followed by an analysis that will reveal what is working and pulling the company down; then, the management will adopt the best resolutions that will provide better results.

Jaxa Auditors is one of the leading accounting and auditing firms in Dubai. We are always ready to assist you in fulfilling your accounting needs, including creating MIS Reports. Our team comprises highly qualified, technologically advanced chartered accountants using all the resources that allow us to render custom-tailored services in Dubai and the UAE.

Call us at 971 4 220 7355 or email at jiby@jaxaauditors.com, and let's discuss your accounting needs.