What Is The Meaning Of MIS Report & How To Create It?

Timely and accurate information play an important role for effective decision-making in businesses and failing to make the right decisions at the right time can lead to business failure.

MIS Report delivers significant business information to management and business owners, helping in complex decision-making processes. The MIS report is also essential for improving the organization’s performance, productivity, and profitability, This article explains MIS reports with their advantages, types, examples, and thorough procedure to prepare MIS reports.

What Is The Full Form Of MIS Report?

The Full Form of MIS Report is “Management Information Systems Report”, which offers a comprehensive view of a company’s performance by setting parameters and analyzing factors like revenue, orders, customer inquiries, HR indices, and employee performance.  

MIS reports combine all activities and departments within a firm, ensuring seamless coordination and the proper implementation of plans and strategies. 

MIS reporting also includes identifying, observing, and monitoring daily business activities, offering a brief overview of the financial status, employee effectiveness, and customer relationship management. This continuous monitoring helps avoid expensive mistakes.

How MIS Reports Work?

• Normally, various types of MIS reports are typically prepared regularly, such as weekly, monthly, every six months, or yearly.
• The MIS report also contains departmental reports given to management, offering an important and deep understanding of how different departments operate.
• The MIS report collects data, including statistics, raw business information, and recent trends. It simplifies this data and presents it in an organized manner.
• It includes essential components for its effective operation, such as people, data, hardware, software, and business procedures.

Types of MIS Reports:

Here are the common report typres that businesses often create using Management Information Systems:

1. Summary Report

It is a report that presents a brief and summarized form of a large amount of business data. This also covers reports related to demographics, customer groups, and current market trends.

2. Trend MIS Report

This report analyzes the performance of a new product, service, or technology by comparing its past performance with its current performance. Its goal is to identify any changes and determine if they are positive or negative. The report is designed to examine how well the company’s new product or service is doing.

3. Exception MIS Report

In unexpected situations that disrupt normal business operations, a specific report is created called an exception MIS report. The report covers all the details of the undesired situation and provides information to customers and investors to keep them aware of company decisions. With the help of this report, the company can adopt proactive measures to mitigate the issue and effectively manage the situation. 

4. Sales MIS Report

This report primarily concentrates on the sales of the company’s product or service on a weekly, monthly, or yearly basis. It aims to spot any differences in sales compared to expectations, and it specifies the income, reasons for the changes, and decisions made regarding sales. The marketing and sales department of a company typically prepares this report.

5. Inventory MIS Report

The Inventory MIS report consistently tracks and follows how a company uses its inventory. It keeps tabs on various types of inventory like work-in-progress, sale items, semi-finished goods, and finished products. The reports recommend strategies to manage these inventories effectively.

6. Budget MIS Report

Companies prepare budget MIS reports to manage the financial budget through effective measures. With the help of this report, companies can easily access their financial needs and allocate funds efficiently, avoiding any unnecessary expenses.

7. Production MIS Report

The company’s manufacturing department generates the production report. This document compares the planned production with the company’s actual production. Analyzing the differences between these two figures helps the management analyze the success and growth rate of the company.

8. Cashflow Statement MIS Report

With the help of this MIS report, the management department of a company can analyze the real movement of cash into and out of the company. It helps identify areas needing more funds, tracks their usage, and pinpoints where funds may be wasted. With such a report, the company can optimize the use of its funds.

9. Profit MIS Report

The accounts department of a company creates this report to examine the difference between the actual and expected profits of the company. It also aids in pinpointing the reasons for these variations.

10. Financial MIS report

The financial MIS report is created by the accounting and finance team of a company. It contains essential statements and records like income statements, balance sheets, and expense statements. These documents are significant for making financial decisions and carrying out financial activities such as dividend payments.

Example of MIS Report:

What Is The Need Of MIS Report? 

MIS reports are made to give management dependable information about their business and current market trends. Following are the reasons why companies need MIS Reports:

• Management Information System (MIS) reports play an essential role in analyzing trends, facilitating forecast preparation, and establishing future business goals for management.
• MIS report helps in strategic planning that involves the development, execution, and assessment of specific business strategies to achieve desired outcomes.
• The management of the company can set future objectives using information from MIS reports.
• MIS reports facilitate the identification of issues, their origins, and the implementation of suitable solutions for resolving the issues in the company.
• The current and past performances of companies can be compared by the data stored in the MIS report. This allows for the measurement of the company’s growth by comparing achievements from previous years with those of the present.

Components of MIS Reports:

MIS Reports have the following five main components:

1. Human Resource

Skilled professionals like managers and accountants record daily transactions and use this data to create MIS reports. The professionals guarantee that the company’s system is running smoothly.

2. Business Procedure

Business procedure is one of the important components of the MIS report, which decides the most effective method and MIS report type suitable for businesses in the UAE. Knowing business procedures is the best practice as it helps users and other components operate efficiently.

3. Data

Data consists of the daily business transactions recorded by users. It is the essential component of the MIS report for recording all the transactions and relevant data of company activities.

4. Hardware

These are devices like computers, printers, and networking equipment that provide computing power for processing data and enable printing and networking functions. This component helps in converting data into information quickly.

5. Software

Software programs and operational data work on hardware and fall into two categories. Systems Software includes operating systems like Windows and Mac OS. Application Software is specialized for business tasks such as payroll, point of sale, and banking systems.

How to Generate MIS Report?

Here are a few steps to prepare an MIS report:

1. Collect raw data from different departments.
2. Determine the format for structuring the report.
3. Decide the titles to use for the rows and columns.
4. Separate and arrange data under the respective headings.
5. Filter and remove unnecessary data from the MIS report or decision-making process.
6. Design a dashboard template using Excel functions and pivot tables.
7. Get the final results using advanced Excel selection tools and methods.

How Now Consultant Can Help You?

To gain the exact benefit of MIS reports in the UAE, seek support from experts like Now Consultant. Now Consultant, with its technologically advanced and highly qualified team, offers customized and personalized assistance to its clients for MIS Reporting and fulfilling your accounting needs in any field of business and financial management.