What is MIS Report & How to Prepare It [In Tally & Excel]

MIS report is one of the most important tools for any business. It gives you a clear picture of where your business stands and where it needs to improve. In this blog post, we’ll inform you everything about MIS reports and how to prepare an MIS report in Tally and Excel.

MIS Report Full Form: MIS stands for a management information system. Executives and the top tier management from all departments rely on the MIS reports that our team creates after collecting, comparing, and analyzing data related to daily tasks and overall business processes.

What is MIS Report?

The MIS report summarizes and provides a bulletin view of different verticals that you need to monitor for the proper functioning of your business. The primary use of this report is to take set parameters and compare them to the performance of business operations.

How MIS Report Works?

They provide a concise view of a company’s performance in terms of revenue, orders, customer queries, HR indices, employee performance, and attrition. It helps identify problems, pressure points, and bottlenecks. Essentially, MIS is a combined solution of systems, hardware, processes, storage, and generating reports for efficient management of an organization.

By analysing the variance between the estimated target with the achieved results, businesses can adopt new practices that would result in higher performance. The primary contribution of these reports is to condense disparate figures to provide insights into the business model.

Types of Management Information System Reports

There are different types of reports that come under management information system. You can easily generate these MIS reports in Excel and Tally. Some of them are:

• Sales MIS Reports: The sales and marketing departments create and manage the Sales MIS report for transactional analysis of various products and services. The analysis relies on variance, which represents the difference between the estimated sales and the actual sales.

• MIS Reports in Accounts: These reports in accounts provide details regarding assets, liabilities, expenditures, and income. Developed by manufacturing, marketing, sales, etc. division for multiple purposes. Some good examples are cash flow statements, production reports mentioning production targets, and sales variance reports.

• Budget Reports: In any business, creating a budget report is necessary to manage allotted finances and to minimize expenses. Some common budget reports that can be generated include production budget, expense budget, cash budget, etc.

• Production Reports: The manufacturing department is responsible for the creation of production reports which include the comparison of set production targets and the final production count. Variation between the targeted and achieved production helps in quantifying the overall process efficiency.

• Cashflow Statement Report: With this Management Information System report, the business operations department can analyse the inflow and outflow of cash, to check the overall transactions at a certain period. It also helps in tracing fund sources that have been utilised for the outflows.

• Funds Statement Report: Funds Statement Report is processed by the accounting and finance team to keep a track of the fund sources. It is also created to check where the funds have been utilised.

• Profit Report: Profit reports are created by the accounts department to check the difference between actual and estimated profit (or loss) at a certain time span. It also accounts for the factors which led to the profit or loss.

• Income Statement Report: Reports for income, taxes, ledgers, and balance sheets are crucial for assessing the financial data of shareholders and investors. With the help of an income statement report, accountants can analyse the concurrent financial state of a business.

• Abnormal Losses Reports: Coming under the umbrella of the manufacturing department, the report on abnormal losses can help businesses reduce expenditure. Some of the abnormal losses include manufacturing defects, spillage or breakdown of machinery, defects in raw material, or natural calamities.

• Costing Reports Cost reports are one of the most important aspects of MIS. Whether it is a small business or an enterprise, overall costs incurred by different departments are analysed to see if they can be reduced.

• HR MIS Reports: It helps in analysing the performance of employees at a certain time. It calculates the total amount of tasks, assignments, or projects completed by different employees in that duration.

• Inventory Reports: MIS provides inventory reports to which raw material is in surplus and which ones need to be replenished. It also helps in keeping the daily, weekly, monthly, and quarterly production and stock statements.

• Statistical publications: Statistical publications and information are required for decision making and plan to make. This kind of MIS system report is important for analyzing the data and developing accurate reports.

• Orders in hand report: This kind of MIS report is created by those in the marketing and sales department. Orders in hand reports are essential for maintaining the ratio between production capacity and the order received for products.

• Report on ideal time: This type of MIS report highlights the time spent by every worker on different tasks and the idle time due to lack of required resources or materials. Reports on idle time are created at the shop floor level of a manufacturing unit using time booking records.

• Machine utilisation report: This MIS system report enumerates the number of hours for which a machine was utilized and the amount of time it stayed idle. It is often prepared in manufacturing divisions by the superior in charge.

• Summary Reports: Summary reports aggregate all information and present the data to showcase a clear picture of finances. Some good examples include reports on the value of all new purchases made and detailed insights of sales.

• Trend Reports: Trend reports help compare past performance with present performance. Such reports indicate how a business unit or product category is performing. Such types of management information system report is important to compare the actual performance with the estimated numbers.

• Exception Reports: Exception reports make it clear where exactly things went wrong and why the performance couldn’t be up to the mark. One good example could be assessing why a particular year’s expenses are higher than the stipulated budget.

Benefits of MIS Reports

Management information reporting is an integral part of business management. Here are some of the advantages of reports for Top Level Management

• Data Management & Trend Analysis

Management information systems make use of mathematical tools to help with data management, analysis, and storage. Such data offer detailed insights for analyzing trends, strategic planning, and business forecasting. 

• Goal Setting

Setting goals is easier with MIS reports as you get access to detailed data insights and analysis. Detailed reports help analyze current market trends and predict future outcomes.

• Identifying Problems

MIS system reports help with calculating the working hours of the workforce and the functioning hours of a machine. These reports also mention the idle hours of both the machine and the workforce. Thus, in case of any problem regarding resources, work hours, or time management, MIS reports are handy.

• Increased & improved efficiency

MIS reports help increase the efficiency of the machinery and workforce. Starting from sales, inventory, production, and cashflows to profits, losses, etc., everything can be tracked.

• Reduced costs & errors

MIS reports are based on OLTP or online transaction processing that helps with fast data collection and processing. This in turn helps companies save data processing time and costs, which in turn leads to quicker decision making as well as goal setting.

How to Prepare MIS Report?

While there are multiple ways to prepare MIS reports like manually or though specialized management reporting systems the two most common methods of preparing report for management information are through Excel and Tally.

MIS Report in Tally

There can be an unlimited number of reports that could be generated from Tally for management. However, it can be categorized into two major types depending on how you generate the report and the specific needs of the report.

• Generic/Preset MIS Reports

These are standard reports that are widely used by top-level management to analyze business performance. It is easy to prepare these MIS reports in tally as users can directly land into the report through the tally windows. Some of the most popular standard MIS reports are Balance Sheet, Profit & Loss Statements, Inventory Valuation, Ratio Analysis and much more, etc.

Steps to Generate Standard/Preset MIS Report in Tally Prime

1. Log in to Tally Prime and open the Company for which you want to generate the MIS report.
2. Go to the Gateway of Tally
3. Select the required MIS Reports.

You can select either Profit and loss, Cost Center Report, stock Summary, Ratio Analysis or Balance Sheet from the Gateway of Tally

(or)

 Select Display and generate reports like Cash/fund flow, Exception Reports, Statement of Inventory or Account Balances.

4. Click F2
5. Enter the required period for which you want to generate the report
6. Click F12: Configure
7. Configure the required options as per your need and click enter
8. The required MIS report will be displayed. Customized MIS reports

You can either print it by pressing “Ctrl +E” or export it by Pressing ” CTRL +E”

• Customized MIS Reports

Reports that are generated to provide specific details of an item, ledger, account, or balance is customized MIS report. To prepare a customized MIS report, one needs to first understand the business requirements and then accordingly design the report in tally.

For example, Debtors with due balance of more than 6 months, Negative Account Payable balances, Sales/ purchases of a particular items etc.

Steps to generate customized MIS Reports in Tally Prime

Get the requirement from the senior management about the specifics required in the report

1. Log in to Tally Prime and open the Company for which you want to generate the MIS report.
2. Go to the Gateway of Tally
3. Select Display
4. Select the required Account Books, Ledgers, Day Book, Voucher, etc.

You can choose any statement, account or books based on your requirements

1. Click F2 and Enter the required period for which you want to generate the report.
2. Click F12 and Configure the required options as per your need and click enter.
3. Click Alt + F12 and Set rules to generate required specifics using filter
4. Press Enter to generate the Report

You can either print it by pressing “Ctrl +E” or export it by Pressing ” CTRL +E”

Examples of MIS Reports in Tally

MIS reports in Tally ERP 9 helps with effective decision-making as well as strategic planning. Soe good examples of MIS reports in Tally are:

• Comparative and exception reports in a multi-columnar format
• Debtors’ payment performance
• Stock aging and movement analysis
• Ratio & job costing analysis
• Scenario management
• Income and expenditure statements

Factors to Keep in Mind While Developing MIS reports in Tally

• Create report templates in MS Excel and make sure that you are well-aware of how to use an excel sheet.
• Prepare MIS templates that are easy to read and comprehend for other staff and upper management.
• Collect all relevant data from the concerned departments.
• Mine the data so that all unnecessary information is removed.
• Use the Excel formula for connecting the above data with the MIS template.

MIS Report in Excel

Another popular method of generating MIS reports is through Excel format. However, it is necessary to have a good command of Excel.

The best part about generating MIS reports in Excel is that users can create graphs and charts, manipulate the data and share the entire trail of reports in electronic format.

Steps to Generate MIS Report in Tally

• Before beginning the process, it is important to collect all the necessary raw data, required to create the report from different departments. Every report is specific to a department, such as sales, marketing, operations, accounts, manufacturing, etc.
• The next step is to mine or clean up the raw data, to filter the information that is required for the particular report.
• Keep a separate sheet for the data repository from where you can pick up information and include it in the main report. This works as a back-end database and helps minimize the scope of errors and make the whole process systematic.
• Next, with the help of Excel formulas, you can connect the back-end database to the MIS template on the spreadsheet. Excel will pull the data from the database to convert it into a well-structured report.
• Finally, check if there are any errors or null values in the report such as #N/A, or #values, etc. which could make the report inaccurate.

Examples of MIS Report in Excel

You need to follow the below-mentioned parameters for the best MIS reports in Excel:

• Detailed and thorough knowledge of MS Excel
• A powerful mechanism for extracting the data from spreadsheets, flat files, and non-relational data storage
• Cleaning the data of inconsistent and null values
• Data profiling system for organizing the data
• Check the reports at the end to assess if or not the data is trending

Tools to Use While Preparing MIS Report in Microsoft Excel

Reporting through Excel is mostly dependent on tools and formulas. Here are some of the most popular tools in MS Excel that help users to prepare robust reports:

• Pivot Tables: Pivot tables are one of the most powerful features in MS Excel. It allows us to summarize and analyze data in a tabular format. We can use pivot tables to create MIS reports from data in a matter of minutes.
• Data Filters: Data filters are used to extract specific information from a large data set. We can use data filters to filter data by date, month, year, product, region, etc.
• Data validation: Data validation is used to ensure that only valid data is entered into a cell. For example, we can use data validation to ensure that only numbers are entered into a cell.
• Data Consolidation: Data consolidation is a feature in MS Excel that allows us to combine data from multiple sources into a single worksheet. This is useful when we want to create MIS reports from data that is spread across different worksheets or files.
• What if Analysis: What if Analysis is a feature in MS Excel that allows users to analyze data based on certain assumptions. It allows users to analyze multiple scenario based on data, set goals to know the variables and much more.
• Charts and Graphs: You can use Charts and graphs to visually represent data. They help us to understand data more easily.
• Macros: Users can use Macros to automate repetitive tasks. You can use them to generate MIS reports from data in a matter of minutes.

The Five Formulas for MIS Reporting in Excel

• Converting text in lower cases into a first letter capitalized case [=Proper(__)]
• Converting mixed case text into upper case [=UPPER(A1)]
• Deleting all extra space extreme ends and middle of a text-phrase. [=Trim()]
• Match the details with specific Text [=Vlookup()]
• Count the number of cells in a row [=Count()]

Components of MIS in Excel and TallyPrime

Below are the few components of marketing information system:

• People: Users who use the information system to record day-to-day business transactions.
• Data: To relate all the transactions performed by their customers daily- from deposits, withdrawals, exchanges between banks, and more.
• Hardware: Hardware refers to various devices, machinery, and equipment used to process information. For example, computers, printers, and networking devices are all hardware.
• Software: Software used to operate computers and execute specific tasks efficiently.
• Business Procedures: Experts develop business procedures and management sets them.

Various Types of MIS Report Templates in Tally & Excel

Tally has preset templates of various types of MIS reports. Four major categories can divide most of these reports.

• Accounting: All the different kinds of reports mentioned above that are used by the accounts department fall in this category. Reports such as Profits and Fund Statements can be processed with the help of Tally ERP 9’s accounting templates. These reports provide the details of the financial aspects of the business activities.

• Finance: Managed by the finance department, these reports help in managing the investments and assets of shareholders and creditors. This category includes reports such as financial and fund statements.

• Inventory: With the help of the inventory MIS report in Tally, tasks related to manufacturing, stock management, and order reports can be managed. It helps in comparing goods and machinery that users can procure, sell and bring, for manufacturing.

• Management Control: This category of MIS report in Tally helps in creating reports for various tasks related to management control such as statistics, costing, budget, and sales, to name a few. This category of MIS reports helps in the efficient management of logistics in the business.

Using the preset MIS templates provided in Tally, you can create specific reports for various departments such as sales, & HR MIS reports, etc. Just fill in the particulars that you require in the report.

Next, simply connect the back-end database (Excel spreadsheet or any other DBMS) where you can store the data with the help of formulas in Tally. The formulas fetch the unsorted data from the spreadsheet to Tally and you can compile your report according to the requirements.

MIS Report Format Example

The main objective of the MIS report is to measure the key performance indices of different operations & multiple units. Here is another MIS Report Sample with various macro & micro-level indicators.

Click the link to check and download MIS Report Format PDF.

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