An MIS pack is the monthly report that tells promoters and the board what happened, why, and what to do about it. A good pack can be read in twenty minutes. A poor one is either a trial balance in disguise or forty pages that nobody opens.
The seven sections
- Headline summary. Five numbers that moved this month and one line on why each moved. Revenue, gross margin, EBITDA, cash and receivable days are a sensible default.
- Profit and loss. Actual against budget and against the same month last year, with variance commentary on anything material. Show the month and the year to date.
- Balance sheet and working capital. Debtor, inventory and creditor days, with the movement from last month. Working capital is where cash quietly disappears.
- Cash flow and forecast. Where cash came from and went this month, and a rolling forecast for the next 13 weeks.
- Receivables ageing. Overdues by customer, with the collection action agreed for each large or old balance.
- Compliance status. Returns filed, dues paid, notices open and the next month's statutory dates.
- Decisions for management. Specific actions with an owner and a date. This is the section that makes the rest worth reading.
Timing
MIS is only useful while the month is still fresh. Aim to close the books within 10 working days and issue the pack shortly after, then review it in a standing meeting with promoters rather than by email.
Common mistakes
- Reporting numbers without a comparison, so nobody can tell good from bad.
- Commentary that repeats the numbers instead of explaining them.
- Leaving out cash and working capital, which are often more urgent than profit.
- Changing the format every month, so trends are lost.
- No list of decisions, so the pack is read and nothing changes.
KPIs worth tracking
Keep the list short and stable. Gross margin by product or branch, EBITDA, receivable days, inventory days, payable days, cash runway in weeks, and one or two operating measures specific to your business, such as revenue per test, per bed or per employee.
This guide is general information and is not professional advice. Apply it to your facts with a qualified adviser.