Mykola Zavoritnii, postgraduate student, Lviv Polytechnic National University, Lviv, Ukraine

ORCID ID: 0000-0003-2293-9775
e-mail: mykola.v.zavoritnii@lpnu.ua

The Role and Significance of Management Reporting in the Management System of Domestic Enterprises

Abstract. Introduction. Management reporting serves as a primary source of information about the financial and economic activities of an enterprise. Understanding the role and significance of management reporting in enterprise management systems is a crucial factor in improving the quality of management decisions.

Purpose. The purpose of the research is to determine the role and significance of management reporting in modern management and planning systems of Ukrainian enterprises, to study its main functions, and to summarize the stages of creation of management reporting.

Results. The reporting activity of a modern enterprise is a complex and multifaceted system, which not only reflects the financial position of the enterprise, but also plays a key role in the formation of strategies and competitive advantages. It occupies an important place as the main means of communication between different departments and management levels within the company and reflects all aspects of both financial and operational activities. In addition, the development of a company’s brand is becoming increasingly important, and the reflection of the success of such actions finds its numerical interpretation in management reporting.

By using management reporting, an organization has the ability to plan and forecast future periods, taking into account data and indicators that are not reflected in financial reporting. A modern company must use management reporting to plan and forecast future events. This is because it provides a comprehensive and objective view of not only the financial, but also the operational state of the company, allowing management to identify trends and analyze key indicators necessary for the development of future strategies.

Management reporting performs functions and tasks that are an integral part of the process of uninterrupted functioning and growth of any organization and is aimed at ensuring effective management and making informed management decisions.

However, as with any tool of management reporting, there are drawbacks such as incomplete or inaccurate information, lack of standards and unified methodology, high cost of preparation, etc.

Conclusions. Management reporting is not only an accounting tool, but also a strategic resource for gaining competitive advantage. Its timely and skillful use contributes to the creation of a stable market position and successful competition in conditions of constant change. Reliable management reporting contributes to making informed strategic decisions, allowing the company to adapt to changes in the competitive environment and not only maintain but also improve its market position.

Keywords: management accounting; management reports; internal reporting; information users; management and planning systems; ERP systems.

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