MANAGEMENT REPORTING OF THE ENTERPRISE: INFORMATION SIGNIFICANCE AND OPTIMAL STRUCTURE

Abstract

The article is devoted to the study of the role of management reporting for the needs of enterprise management and substantiation of its proper composition. The purpose of the study is to substantiate the optimal structure of management reporting of the enterprise, focused on the information needs of managers to ensure the stability and efficiency of management. It is determined that the use of only financial statements is not enough to provide the management with relevant information focused on the implementation of effective management decisions. The expediency of forming management reporting as the main source of accounting and analytical data for management is argued. The basic requirements to the management reports providing value of the information presented in them for needs of management of the organization are stated. The views of scientists on the composition of management reporting of the enterprise are generalized. After all, it is known that the effectiveness of enterprise management is determined by the timeliness, feasibility and effectiveness of its decisions. Three components of management reporting are considered: reporting on the financial position and results of the enterprise, on key performance indicators, on the implementation of budgets, specifying their optimal content. It is management reporting as a carrier of key financial, production and other important data is designed to provide the management of the enterprise with relevant information. The importance and necessity of forming management reports on liquidity and solvency of the enterprise, profitability, potential of bankruptcy are substantiated. Examples of these reports have been developed and proposed for use. After all, each company, being interested in its own financial stability, must generate management reports that reflect the main indicators of its liquidity, solvency, profitability, probability of bankruptcy. Regarding the periodicity of these forms, it is considered optimal to generate reports both on the results of the reporting year and in the context of quarters. As a result, all this will help increase the investment attractiveness of the business, will contribute to the formation and publication of reports with analytical indicators.