As a Managing Director or CEO, knowing where your business is heading financially is crucial. And to do this, you need information. After all, the financial management information you have on your company will feed into all decision making in the future. But what is management information and what data should you be collecting?
In this article, you’ll explore what financial management information is, and the 8 key types of financial management information you should be collecting.
What is financial management information?
Management information, in general, is a term used to describe data relating to a business’ everyday activities. Each department will have different management information they require for to help fulfil their role. For example, management information might include customer reviews (marketing), inventories (operations), or work attendance (HR).
Financial management information is more specific, but still covers a broad spectrum of data – and every business’ needs will be different. What is essential financial information for one business will be useless in another. Each organisation needs to work out what they need to track for themselves. A good place to start is to explore the key management information questions to ask your business.
On the other hand, most businesses do have similar visions when it comes to their finances – they want to grow, increase profitability, and boost their market share. If this is the case for your organisation too, here are the 6 key types of financial management information your business should be collecting.