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Management Reporting: Make smarter decisions about your company

Management Reporting: Make smarter decisions about your company

Companies rely increasingly on management reporting to improve their business operations and to stay one step ahead of their competitors. What is management reporting? And is it a must for your company?

What is management reporting?

Management reporting is a form of business intelligence. The software collects data on various business aspects and organises them into a clear overview. This overview provides answers to questions such as:

  • Is it a good idea to hire more employees?
  • Which customers generate most profit?
  • Should we increase our marketing efforts?

Because data are easier to interpret, it becomes easier for decision-makers to make decisions with more impact.

How does management reporting work?

Management reporting collects data on the various departments of your company. Reporting is based on financial and operational data, which are organised into a digital dashboard. It gives you a clear picture of your company’s health over a given period.

Management reporting works with KPIs (key performance indicators). If they are not achieved, you immediately know where to adjust.

What’s the point of management reporting?

Professional management reporting software provides a detailed overview of how your company is performing. It ensures you are making the right decisions and you are not having to chase after the facts. This means:

  • More efficient operational processes in your company.
  • You can monitor the progress
  • Your company remains a formidable competitor.
  • More efficient business management.
  • You are steadily working on improving your business.

What’s the difference between a financial and a management report?

Management reports and financial reports are sometimes mixed up. But there is a big difference:

  • Your company keeps financial reports for accounting purposes. They provide an overview of your company’s performance, but are not detailed enough to make effective adjustments.
  • Management reporting is up to date and combines not only financial, but also operational data. This means it’s easier to make adjustments on time and to monitor your company’s progress.

How do I start with management reporting?

Drawing up a management report    is a lengthy process. This is also necessary if you want to use the software to inform all decision-makers in your company quickly and clearly.

The choice of KPIs, for example, is a real headache: too many causes confusion and stands in the way of a quick overview.

Another issue is the structure of the data: if this is not clear, you will never get the most out of your reports.

Do you need help with your management reporting?

Management reporting provides a quick, in-depth health check of your company and helps you to be more efficient. Do you need an expert who aligns your management report seamlessly with your business and all users? Contact us: We are happy to help you.

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What does a good credit policy look like?

What does a good credit policy look like?

A good credit policy ensures your products or services are more appealing to potential customers. However, granting credit always implies risks. How do you develop a balanced credit policy for your company? We list the do’s and don’ts for you.

Advantages of a credit policy

A credit policy delays payment for your customer, or breaks down the price into instalments on which the customer pays interest.

  • A purchase becomes more attractive.
  • It is easier for potential customers to justify a purchase.

The advantage for your company is that you sell more, but there is a greater risk of non-payment. A well thought-out credit policy limits the risks.

Pillars of your credit policy

The following elements largely determine the success of your credit policy:

  • Credit period: within which period must your customer repay the amount?
  • Credit standard: at what level of creditworthiness do your customers come into consideration for credit? Low requirements will boost sales, but increase the risk of late payments.
  • Collection policy: how do you deal with late payments? A strict approach results in faster payments, but will drive annoyed customers to your competitors more easily.

Other points of attention for your policy

  • Credit checks

Carry out credit checks: not only before granting credit, but also during the repayment period. Your customer’s financial situation can change quickly: regular checks will keep you one step ahead of payment difficulties.

 

  • Monitor your accounts receivable

Keep your accounts receivable ledger up to date and take action if invoices are not paid on time.

  • Keep the payment term as short as possible.
  • Process the debtor invoices in your financial administration.
  • Charge interest for overdue payment on unpaid invoices.

 

  • Relationship with your debtor

Maintain a good relationship with your debtor: this makes it easier to discuss problems and increases the likelihood that he/she will pay on time.

Do not be too aggressive or passive in your credit policy: the right balance is crucial to collect payments on time and to maintain a good relationship with your customer.

 

  • Clear communication

Avoid confusion by communicating clearly with your customer and the relevant departments within your company. Clear internal communication prevents sales staff from continuing to sell to defaulting customers, for example.

  • Communicate clearly about your terms of payment to avoid disagreements.
  • Save all communication between you and your customer so you have proof in case he/she doesn’t pay.

Ask our experts

Is your credit policy not yet up to speed?

Contact us for more information!

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