Your MIS chart of accounts is not your statutory one, and that is fine
The board wants the business cut, the filing wants the statutory cut, and the same ledgers must produce both. How to hold two views, one set of books.
Topic
MIS and management reporting
Management reporting that does not agree with the statutory numbers is the commonest argument in a monthly review. These posts are about closing that gap.
Management reporting and statutory reporting answer to different masters. One serves the board and the business heads; the other serves a filing deadline. The trouble starts when they disagree and nobody can say why — because the management pack was built in a spreadsheet from a different cut of the same ledgers.
These posts are for the FP&A team: how to hold an MIS chart of accounts that maps to the books rather than competing with them, how to allocate cost in a way that survives being questioned, and how to keep budget, actual and forecast in one place instead of three.
One of several topics, each gathering the posts on one change.
3 posts on this
Cost allocation you can defend in a board meeting
Every allocation is an opinion. The ones that survive questioning have a basis fixed before the result, applied the same way every month.
Budget, actual and forecast in one place
Three numbers, usually in three systems, reconciled by hand each month. What it takes to hold them together so the variance is a fact.