Question

as a management accountant , how and when will you use flash reports?

Answer 1

Flash Reports which is also called as Financial Dashboard Reports are basically summary of key financial and operational data on either weekly or short period basis.

Requirement of Flash Report why Necessary.?? Answer is Mostly companies prepare their financial statements on a monthly or quarterly or sometime even annual basis. Unfortunately, it usually takes many weeks for management to finalize their financial reports that comply with various Laws And Regulations like U.S. Generally Accepted Accounting Principles (GAAP) or either IFSC/IAS. The process takes even longer if an outsider accountant reviews or audits your financial statements.Management can't sit on a table to wait for financial Reports to make a decision

There comes in Picture is FLASH REPORTS

Flash reports give upper management a weekly snapshot of certain key financial figures, such as A/R aging, cash balances, payroll and collections. Basically there are mainly 3 Sections in Flash Report where focus is given : Liquidity , Productivity & Profitability. But there can be additional Flash Report depends on Management Requirement. Effective Flash report are those which are simple and easy to understand and quite simple.

Further, How Management uses these Reports.??  Companies generally use flash reports to see how the business is doing on a daily basis and to identify its key performance indicators (KPI’s) and progress against business objectives on a recurring basis to all levels of the business. The reports are intended to fill the gaps between more detailed monthly or quarterly business reports and provide management with a sense of how the business is performing and what the period-end may look like so corrective action can be taken beforehand if needed.