'An accounting report is essential report, which must be able to fulfil certain basic criteria'. Explain? List the various types of accounting reports.
'An accounting report is essential report, which must be able to fulfil certain basic criteria'. Explain? List the various types of accounting reports.
When a data is processed properly then it becomes information and when such related information is summarised to meet a particular need, it is called a report. The content and design of the report is expected to vary depending upon the level to which it is submitted and decision to make on the basis of the report. A report must be effective and efficient to the user and should substantiate the decision making process. Every accounting report must be able to fulfill the following criterion
(i) Relevance (ii) Timeliness (iii) Accuracy (iv) Completeness (v) Summarisation
Types of Accounting Reports - The accounting reports generated by the accounting software may be either routine reports or on the specific reuirements of the user e.g. the ledger is a routine report while a report on supplies of a particular item by a given party is an on-demand report. However, from a broader perspective, the Accounting related MIS reports may be of following types:
(i) Summary Reports - Summarises all activities of the organisation and present in the form of summary report like Profit ans Loss account and Balance Sheet.
(ii) Demand Reports - This report will be prepared only when the management requests them, e.g., Bad Debts Report for a given product, Stock Valuation Report.
(iii) Customer/Supplier Reports - According to the specifications of the management it will be prepared. E.g., Top 10 Customers report, Interest on Customer Account/Invoices, Statement of Account, Customer Reminder Letters Outstanding/Open Delivery Order, Purchase Analysis, Vendor Analysis Report.
(iv) Exception Reports - These are the reports that are prepared in accordance with some specific conditions or exceptions. E.g., Inventory Report in short supplies, Stock Status Query, etc.
(v) Responsibility Reports - These reports are prepared by the managers who are responsible for their respective departments. E.g., the report on cash position is to be submitted by the head of Finance and Accounts Department.
When a data is processed properly then it becomes information and when such related information is summarised to meet a particular need, it is called a report. The content and design of the report is expected to vary depending upon the level to which it is submitted and decision to make on the basis of the report. A report must be effective and efficient to the user and should substantiate the decision making process. Every accounting report must be able to fulfill the following criterion
(i) Relevance (ii) Timeliness (iii) Accuracy (iv) Completeness (v) Summarisation
Types of Accounting Reports - The accounting reports generated by the accounting software may be either routine reports or on the specific reuirements of the user e.g. the ledger is a routine report while a report on supplies of a particular item by a given party is an on-demand report. However, from a broader perspective, the Accounting related MIS reports may be of following types:
(i) Summary Reports - Summarises all activities of the organisation and present in the form of summary report like Profit ans Loss account and Balance Sheet.
(ii) Demand Reports - This report will be prepared only when the management requests them, e.g., Bad Debts Report for a given product, Stock Valuation Report.
(iii) Customer/Supplier Reports - According to the specifications of the management it will be prepared. E.g., Top 10 Customers report, Interest on Customer Account/Invoices, Statement of Account, Customer Reminder Letters Outstanding/Open Delivery Order, Purchase Analysis, Vendor Analysis Report.
(iv) Exception Reports - These are the reports that are prepared in accordance with some specific conditions or exceptions. E.g., Inventory Report in short supplies, Stock Status Query, etc.
(v) Responsibility Reports - These reports are prepared by the managers who are responsible for their respective departments. E.g., the report on cash position is to be submitted by the head of Finance and Accounts Department.
