First of all, please answer the following questions: why do you want to be management balance, who will be its user, what issues need to be solved with the help of this kind of management reporting. Remember that the preparation of any report takes time, so decide the frequency and timing of compiling the managerial balance.
Make or get ready in the accounting accounting balance at end of period prior plan.
Divide the assets and liabilities management balanceand activities:
- main (operation, bringing the main income),
- financial,
The "snap" of the article balanceand to activities. For example: the fixed capital investment activity includes both assets (fixed assets) and capital commitments (investments). Working capital – is associated with the main (operating) activity, includes current assets and current liabilities.
Compare selected articles of the balanceand together. Mark which financial indicators necessary for the analysis at your enterprise. Correct managerial balance in line with the needs of your management reporting.
Make the planned balance for the period adopted by other forms of management accounting. At the end of the period, make the actual managerial balance, analyze deviations and their causes. Develop plan of measures on elimination of causes of negative deviations from planned targets. The figure shows an exemplary management balance of the enterprise. This sample only shows one option of compiling the managerial balanceand is not representative for all enterprises. But perhaps this sample will tell you in what direction to move you.