Page 212 - DCOM206_COST_ACCOUNTING_II

Unit 11: Information System and Reporting to Management

How can Deloitte help? Notes
The scale and focus of the project may vary depending on the client needs, ranging from
preparation of high level management reports in Excel focused on measuring
implementation of corporate strategy (BSC approach) to large scale implementation of
specialised reporting applications (i.e. Oracle, Hyperion, Cognos). Following, there are
three typical examples of management reporting projects: Strategic Reporting, Fast close
project and Management Information System (MIS) implementation.

Strategic Reporting gives the client information about the progress of corporate strategy
implementation on a regular basis (usually monthly). The project phases are analysis of
current corporate strategy, preparation of BCS map containing strategic goals and drivers,
identification and definition of KPIs measuring strategic goals and drivers, design of
reporting process ensuring regular information preparation and preparation of pilot reports
for management.
Goal of the fast close project Reporting is to shorten the closing and reporting cycle,
usually to 5th to 7th working day after month end. Typical project phases are analysis of
current closing and reporting process, identification of bottlenecks and automation
opportunities, support during regular monthly closure process and implementation of
relevant tools (estimates, adjustments).

Management Information System (MIS) increases efficiency of management report
preparation and distribution. Projects in MIS implementation consist of identification of
management information needs, definition of MIS data model, selection of MIS platform,
preparation of Business blueprint describing in detail calculation of KPIs from source
data, implementation of MIS database and ETL routines (Extract, Transform and Load) and
roll out of management reports or building a management portal.
Bottom-Line Benefits

 Correct, unambiguous and informative KPIs and reports.
 Increased efficiency of the reporting preparation and distribution process.
 Shorten time-delivery for management reporting and reduced costs.
 Improved decision support – faster and more relevant management information.

 Increased analytical capabilities and performance management support.
Questions:
1. Study and analyse the case.
2. Write down the case facts.

3. What do you infer from it?
Source: http://www.deloitte.com/assets/Dcom-Latvia/Local%20Assets/Documents/MC%20product
%20sheets/Finance%20transformation/Management-reporting-MC-products.pdf

11.6 Summary

 One should be very clear about the objective of the report before preparing it.

 Manager should be able to clearly define and understand the problem for which the report
is going to be presented.
 Needs of report differs at different management levels. So, this should be decided that
which level of management will use the particular report.

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