Definition
The reporting system, also referred to as “reporting”, encompasses all records/reports that exist within the company.
The reports contained therein capture business operations in numerical terms. The most important reports in a company are, for example, the balance sheet and the income statement. But reports such as earned value analyses, target-actual comparisons, general cost evaluations, or customer analyses are also extremely important, particularly for sales.
Internal and External Reports
Reports also serve for internal and external reporting.
- Internally, reports serve as a controlling instrument. They help to keep track of profitability, costs, personnel, and other relevant figures, and to weigh up decisions.
- External reports are passed on to tax advisors or tax authorities.