How to Create a Management Report in Xero
Xero’s built-in management reporting feature generates professional-looking reports useful for providing to board members, as well as for guiding your business in making better decisions. Here is our crash course guide to creating a management report in Xero.
Not sure what management reporting is? Check out this post for a full explanation.
What’s included in a Xero management report?
Xero’s new and improved reporting feature is capable of automatically generating a management report based on your company’s existing data. Included in Xero’s management report pack are the following:
- An executive summary summarising the report.
- A cash summary shows the movement of cash into and out of your business within the specified period of your management report. This feature is limited in Xero, but there are add ons like Float which generate a cash flow forecast using the data stored in Xero.
- A Profit and Loss report is a pre-tax financial statement that summarises revenues, costs, and expenses occurring in a specified period.
- The Balance Sheet details the net worth of your organisation at a certain point in time by comparing its assets, liabilities, and equity. Aged receivables show the list of unpaid customer invoices while aged payables show the list of bills your organisation is due to pay, such as for supplies, inventory, and services.
How to create a Xero management report
The management report in Xero can be found under the Reports tab, going to All Reports > Accounting > three dots > Management Report. You can click the star next to the Management Report to add it as a Favourite that always appears in the Reports drop down menu.
Depending on who the management report is for, you may want to change the layout of certain reports to compare different time periods. Your business could want a management report displaying monthly results for internal use while your board could want to see your quarterly results. Xero lets you do this by changing the date, comparison, YTD, and other options depending on each report as needed, although you can’t add or change which reports appear in the default management report pack. Clicking the Update button generates your management report using the options you’ve specified. The Update button can be used every time you change the date or other report options.
You are also able to add Footnotes into your management report by hovering over any line in the report and clicking on the drop down arrow that appears. Adding footnotes allows you to demonstrate your understanding of any discrepancies that need to be explained in your report to external investors or board members.
A further feature of management reporting in Xero is the ability to track results by category, such as sales by employee or by region. You can do this by going to Settings > General Settings > Tracking.
You can print a hard copy of this management report or export it to an Excel spreadsheet, PDF, or Google Drive with the Publish, Print and Export options at the bottom of the report. Publishing your management report allows users with the Adviser role to save a draft report of a final, read-only version that appears in the Published tab viewable to other users. You can do this to each individual report or the management report as a whole as well as with any of the reports in available in Xero.
For more guidance on creating management reports in Xero, follow this link.