Question

An accounting report is essential reports,which must be able to fulfill certain basic criteria 'Explain ? List the various type of accounting reports.

Answer 1

When a data is processed properly than it becomes information and when such related information is summarized 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) Summarization
Type of Accounting reports The accounting reports generated by the accounting software may be either routine reports or on the specific requirements 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 reports
(i) Summary Reports Summarizes all activities of the organisation and present in the form of summary report like profit and loss account and balance Sheet.
(ii) Demand Reports This reports will be prepared only when the management request 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 reports , Interest on customer Account / Invoices, Statement of Account, Customer Reminder Letters Outstanding /Open Delivery Order ,Purchase Analysis ,Vendor Analysis Report.
(iv) Exception Reports According to the conditions or exception the report is prepared. e.g. Inventory Report in short supplies ,Stock Status Query ,Over stocked Status ,etc.
(v) Responsibility Reports The MIS structure specifies the premises of management responsibilities. e.g the report on Cash Position is to be submitted by the head of finance and Accounts Departments.