A guide to ensuring more time is spent using information
not extracting data.

Key points

• Inadequate management information contributes to business failure
• Business plans must include Key Performance Indicators (KPIs)
• Organisations must proactively monitor KPIs to manage growth
• Exception reporting and alerts can improve responsiveness, customer
  relationships and prevent inappropriate business practice

Small and medium sized businesses (SMEs) are an essential component of the UK economy, yet they are far more vulnerable to business failure as a result of late payment or customer failure than their larger competitors. They need to respond quickly to secure new business opportunities yet few have the information available
to support such decisions.

• Is this customer going to be profitable?
• What additional staff resources will be required?
• Can the business manage this level of growth effectively or will we incur
  too much debt?

Without timely and accurate management reports, SMEs are unable to monitor the business, ascertain whether it is on track with the business plan or rapidly highlight potential problems such as dropping profit margins or an increase in debtors.

In the past, SMEs have struggled to deliver adequate management information due to the time consuming processes involved in creating often inaccurate and unsatisfactory reports.

There are now a number of ways that management information and reports can be created, automated and delivered to the board in a more timely and accurate way. However, the ‘export’ technology is a minefield of misinformation and misinterpretation that can cause significant problems if misunderstood.

This guide explains these technologies, outlines the value of direct links between accounts software and spreadsheet based business plans with Key Performance Indicators (KPIs), and demonstrates how growing SMEs can use management
reporting and automated alerts to support and drive business success.

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