Steps for Effective Reporting
The following steps should be taken In order to have effective and efficient reporting:
(i) Reporting should be the logical result of accounting routine. This needs detailed planning of flow of paper work and its analysis.
(ii) Efforts should be ready to avoid duplication of work. Journals, ledgers etc. should be planned in a way which control data is available with no extra analysis.
(iii) Codification and mechanisation should be very much employed. They very much help in speeding up of reports.
(iv) Accounts for a period must be closed a few days before the close of the period. For instance, accounts relating to month of June might be closed on 15th June. The period from 15th June to 30th June might be employed for processing the data and the reports might be sent on 1st July.
(v) In case actual data are not readily obtainable, the interim estimates might be employed in their place. The quality of reports in such type of a case would rely upon the quality of estimates. The actual may later on be compared with the estimates and the deviations or the variations found out. These deviations or variations will assist the persons responsible to report improved estimates for the future.
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Cost reduction as stated above includes real and stable reduction in costs. It is a permanent process. Though, it needs co-operation of people at all levels.
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