Profitability Reporting
Decision makers need to see the true, fully allocated income of the business in the segmentation that they run the business in. These segments can be by customer, product, geography and are usually not available in the general ledger. By embracing the concept of thin ledger and separating statutory from management reporting, companies can develop profitability reporting that presents the business the way they view it.
Planning
Once actual results are available in a profitability reporting system, the ability to budget and forecast in the same manner becomes invaluable. By developing a planning system that uses the same drivers and allocation methodology as actuals, assumptions are understood by all so that the budgeting/forecasting process becomes a useful tool, not just a periodic exercise.
Reporting & Analysis Tools
Finally, with sound reporting and tools, the ability to look at monthly trends and variances enables companies to identify areas of the business that are performing better or worse than expected. A combination of monthly standard reports with supporting adhoc analysis provide the information decision makers need.