MIS Report Full Form: MIS stands for a management information system. Executives and the top tier management from all departments, refer to the MIS reports that are created after collecting, comparing, and analysing data related to daily tasks and overall business processes.
A management information system helps businesses identify problems, pressure points, and bottlenecks. Essentially, MIS is a combined solution of systems, hardware, processes, storage, and generating reports for efficient management of an organisation.
What is MIS Report?
MIS report provides a summarised and bulletin view of different verticals that are required to be monitored for the proper functioning of your business. The primary use of this report is to take set parameters and compare them to the performance of business operations.
How MIS Report Works?
They provide a concise view of a company’s performance in terms of revenue, orders, customer queries, HR indices, employee performance, and attrition.
By analysing the variance between the estimated target with the achieved results, businesses can adopt new practices that would result in higher performance. The primary contribution of these reports is to condense disparate figures to provide insights into the business model.
What are the types of MIS Reports?
- Sales MIS Reports: Sales MIS report is created and managed by the sales and marketing departments for transactional analysis of various products and services. The analysis is based on variance, which is the difference between the estimated sales compared to actual sales.
- MIS Reports in Accounts: These reports in accounts provide details regarding assets, liabilities, expenditures, and income. Developed by manufacturing, marketing, sales, etc. division for multiple purposes. Some good examples are cash flow statements, production reports mentioning production targets, and sales variance reports.
- Budget Reports: In any business, creating a budget report is necessary to manage allotted finances and to minimise expenses. Some common budget reports that can be generated include production budget, expense budget, income budget, cash budget, etc.
- Production Reports: The manufacturing department is responsible for the creation of production reports which include the comparison of set production targets and the final production count. Variation between the targeted and achieved production helps in quantifying the overall process efficiency.
- Cashflow Statement Report: With this MIS report, the business operations department can analyse the inflow and outflow of cash, to check the overall transactions at a certain period. It also helps in tracing fund sources that have been utilised for the outflows.
- Funds Statement Report: Funds Statement Report is processed by the accounting and finance team to keep a track of the fund sources. It is also created to check where the funds have been utilised.
- Profit Report: Profit reports are created by the accounts department to check the difference between actual and estimated profit (or loss) at a certain time span. It also accounts for the factors which led to the profit or loss.
- Income Statement Report: Reports for income, taxes, ledgers, and balance sheets are crucial for assessing the financial data of shareholders and investors. With the help of an income statement report, accountants can analyse the concurrent financial state of a business.
- Abnormal Losses Reports: Coming under the umbrella of the manufacturing department, the report on abnormal losses can help businesses reduce expenditure. Some of the abnormal losses include manufacturing defects, spillage or breakdown of machinery, defects in raw material, or natural calamities.
- Costing Reports Cost reports are one of the most important aspects of MIS. Whether it is a small business or an enterprise, overall costs incurred by different departments are analysed to see if they can be reduced.
- HR MIS Reports: It helps in analysing the performance of employees at a certain duration of time. It calculates the total amount of tasks, assignments, or projects completed by different employees in that duration.
- Inventory Reports: MIS provides inventory reports to which raw material is in surplus and which ones need to be replenished. It also helps keep daily, weekly, monthly, and quarterly production and stock statements.
- Statistical publications: Statistical publications and information are required for decision making and plan to make. This kind of MIS report is important for analyzing the data and developing accurate reports.
- Orders in hand report: This kind of MIS report is created by those in the marketing and sales department. Orders in hand reports are essential for maintaining the ratio between production capacity and the order received for products.
- Report on ideal time: This type of MIS report highlights the time spent by every worker on different tasks and the idle time due to lack of required resources or materials. Reports on idle time are created at the shop floor level of a manufacturing unit using time booking records.
- Machine utilisation report: This MIS report enumerates the number of hours for which a machine was utilized and the amount of time it stayed idle. It is often prepared in manufacturing divisions by the superior in charge.
- Summary Reports: Summary reports aggregate all information and present the data to showcase a clear picture of finances. Some good examples include reports on the value of all new purchases made and detailed insights of sales.
- Trend Reports: Trend reports help compare past performance with present performance. Such reports indicate how a business unit or product category is performing. Such type of MIS report is important to compare the actual performance with the estimated numbers.
- Exception Reports: Exception reports make it clear where exactly things went wrong and why the performance couldn’t be up to the mark. One good example could be assessing why a particular year’s expenses are higher than the stipulated budget.
Benefits of MIS Reports and Need of MIS
The Flow of Information through MIS is:
- Data Management & Trend Analysis
Management information systems make use of mathematical tools to help with data management, analysis, and storage. Such data offer detailed insights for analyzing trends, strategic planning, and business forecasting.
- Goal Setting
Setting goals is easier with MIS reports as you get access to detailed data insights and analysis. Detailed reports help analyze current market trends and predict future outcomes.
- Identifying Problems
MIS reports help with calculating the working hours of the workforce and the functioning hours of a machine. These reports also mention the idle hours of both the machine and the workforce. Thus, in case of any problem regarding resources, work hours, or time management, MIS reports come in handy.
- Increased & improved efficiency
MIS reports help increase the efficiency of the machinery and workforce. Starting from sales, inventory, production, and cashflows to profits, losses, etc., everything can be tracked.
- Reduced costs & errors
MIS reports are based on OLTP or online transaction processing that helps with fast data collection and processing. This in turn helps companies save data processing time and costs, which in turn leads to quicker decision making as well as goal setting.
How to Prepare MIS Report?
There are two main methods of preparing MIS reports for different tasks; in Tally and in Excel. Both these processes require advanced MIS reporting skills. Let’s have a look at the two methods.
MIS Report in Tally
There are preset templates of various types of MIS report in Tally. Most of these reports can be divided into four major categories.
- Accounting: All the different kinds of reports mentioned above that are used by the accounts department fall in this category. Reports such as Profits and Fund Statements can be processed with the help of Tally ERP 9’s accounting templates. These reports provide the details of the financial aspects of the business activities.
- Finance: Managed by the finance department, these reports help in managing the investments and assets of shareholders and creditors. This category includes reports such as financial and fund statements.
- Inventory: With the help of the inventory MIS report in Tally, tasks related to manufacturing, stock management, and order reports can be managed. It helps in comparing goods and machinery that are procured, sold, and bought, for manufacturing.
- Management Control: This category of MIS report in Tally helps in creating reports for various tasks related to management control such as statistics, costing, budget, and sales, to name a few. This category of MIS reports helps in the efficient management of logistics in the business.
Using the preset MIS templates provided in Tally, you can create specific reports for various departments such as sales, & HR MIS reports, etc. Just fill in the particulars that you require in the report.
Next, with the help of formulas in Tally, you simply need to connect the back-end database (Excel spreadsheet or any other DBMS) where your data is stored. The formulas fetch the unsorted data from the spreadsheet to Tally and you can compile your report according to the requirements.
Examples of MIS Reports in Tally
MIS reports in Tally ERP 9 helps with effective decision-making as well as strategic planning. Soe good examples of MIS reports in Tally are:
- Comparative and exception reports in a multi-columnar format
- Debtors’ payment performance
- Stock aging and movement analysis
- Ratio & job costing analysis
- Scenario management
- Income and expenditure statements
Factors to Keep in Mind While Developing MIS reports in Tally
- Create report templates in MS Excel and make sure that you are well-aware of how to use an excel sheet.
- Prepare MIS templates that are easy to read and comprehend for other staff and upper management.
- Collect all relevant data from the concerned departments.
- Mine the data so that all unnecessary information is removed.
- Use the Excel formula for connecting the above data with the MIS template.
MIS Report in Excel
The second method is to create MIS reports in Excel format. It is necessary, however, to have a good command of Excel and MIS reporting skills in order to create MIS Excel reports based on specific requirements.
Here are the specific stages required to create MIS reports in Microsoft Excel.
- Before beginning the process, it is important to collect all the necessary raw data, required to create the report from different departments. Every report is specific to a department, such as sales, marketing, operations, accounts, manufacturing, etc.
- The next step is to mine or clean up the raw data, to filter the information that is required for the particular report.
- Keep a separate sheet for the data repository from where you can pick up information and include it in the main report. This works as a back-end database and helps minimize the scope of errors and make the whole process systematic.
- Next, with the help of Excel formulas, you can connect the back-end database to the MIS template on the spreadsheet. Excel will pull the data from the database to convert it into a well-structured report.
Finally, check if there are any errors or null values in the report such as #N/A, or #values, etc. which could make the report inaccurate.
Examples of MIS Report in Excel
You need to follow the below-mentioned parameters for the best MIS reports in Excel:
- Detailed and thorough knowledge of MS Excel
- A powerful mechanism for extracting the data from spreadsheets, flat files, and non-relational data storage
- Cleaning the data of inconsistent and null values
- Data profiling system for organizing the data
- Check the reports at the end to assess if or not the data is trending
The Five Formulas for MIS Reporting in Excel
- Converting text in lower cases into a first-letter capitalized case
- Converting mixed case text into upper case
- Deleting all extra space extreme ends and middle of a text-phrase
- Converting numbers stored as text into numbers for right computation
- Computing in a cell the length of characters for ensuring data accuracy
Components of MIS
People: Users who use the information system to record day-to-day business transactions.
Data: To relate all the transactions performed by their customers daily- from deposits, withdrawals, exchanges between banks, and more.
Hardware: Hardware refers to various devices, machinery, and equipment used to process information. For example, computers, printers, and networking devices are all hardware.
Software: Software used to operate computers and execute specific tasks efficiently.
Business Procedures: Business procedures are developed by experts and set by management.
MIS Reports Example
The main objective of the MIS report is to measure the key performance indices of different operations & multiple units. Here is another MIS Report Sample with various macro & micro-level indicators.
Click the link to check and download MIS Report Format PDF.
- What are the disadvantages of MIS?
MIS aka Management Information System is a tool to generate viable reports based on existing data enabling management to make data-driven decisions. There is no disadvantage of MIS except that it requires specialized tools and expertise to prepare reports.
- What is the Meaning of the MIS report?
MIS report meaning in simple terms is a management information system that provides data patterns, employee information, latest patterns & trends. MIS reports are required by companies to make key business decisions & improve short-term & long-term performance.
- Is MIS cost-effective?
While MIS needs initial investment and expertise to set up, it is extremely cost-effective in the long run. It reduces manual errors and automates repetitive tasks like data entry, ultimately increasing the ROI.
- What are the types of MIS Reports in Tally?
The different types of MIS report in Tally for business monitoring and good decision-making are:
– Accounting reports: These provide financial information for better operational performance.
– Financial reports: These highlight a company’s financial condition for relevant stakeholders, govt. departments & creditors.
– Inventory reports: Such reports mention the status of items in an inventory or stock.
– Management control reports: Reports like these provide scenario & cost-center reports for managing daily operations.
- What are the types of MIS Reports in Excel?
MIS reports provide data on different categories for accurate decision-making. The different types of reports you can create in the MIS dashboard in excel are:
– Summary reports: The summary type of MIS report is used for visualizing aggregate data and creating a summary of the same.
– Trend reports: Trend reports help compare different services/products and analyze the latest trends & patterns amongst multiple categories.
– On-demand reports: On-demand reports are created as per the latest requirements of the team and are not based on any criteria.
– Budget reports: Budget reports highlight the details about varieties of budgets. For instance, marketing, cash, production & expenditure.
– Production reports: Production reports comprise numbers related to raw production. These reports also mention details regarding actual vs predicted products.
- What is the MIS dashboard?
MIS dashboards include a graphical representation of quarterly & monthly reports. MIS report is critical for defining targets & monitoring key performance indicators.
- What is the MIS report in accounts?
MIS reports in accounts include all reports related to cash flow, debt, and the financial statement of a business.
- What does an MIS report include?
MIS reports include current and previous year’s data along with projections related to a particular department, product, location, or channel. For example. MIS of Sales department includes current sales, previous year's sales, next year's projections, bifurcations, etc.
- How to make an MIS report in excel for sales?
You can make an MIS report in excel by feeding data, using formulas, Pivot Tables, graphs, charts, etc. You need to have a good command of excel to prepare MIS reports in excel.
- What is the Role of the MIS report in BPO?
MIS report helps BPOs to analyze the effectiveness of strategies, optimize processes and measure growth, and much more.