EPM 101: FP&A Essentials

Management Reporting

How to design clear, actionable, executive-ready reporting that turns data into decisions and transforms FP&A into a strategic partner.

Overview

What Is Management Reporting?

Management reporting is FP&A's structured, recurring communication of performance, insights, and actions to senior leadership.

It is not just KPIs, charts, or dashboards.

It is:

  • A narrative about how the business is performing
  • A translation layer between operations and strategy
  • A decision-making tool
  • A forward-looking viewpoint, not historical bookkeeping

When done right, management reporting becomes the operating system of the company.

What Makes Great Management Reporting?

Elite reporting has 7 characteristics:

1. Clarity

Simple language, clean visuals, no jargon.

2. Focus

Shows what matters, hides what doesn't.

3. Context

Explains why results happened — not just the results.

4. Insight

Identifies patterns, root causes, and risks.

5. Actionability

Every slide/page answers: "What should leadership do next?"

6. Accuracy

Single source of truth; consistent metric definitions.

7. Forward-Looking

Next steps, forecasts, scenarios — not data dumps.

This is where 90% of FP&A teams fall short.

Why It Matters

The 4 Levels of Management Reporting Maturity

Level 1 — Data Dumping

Excel screenshots, no story, inconsistent KPIs, painful formatting.

Level 2 — Functional Reporting

Finance and ops report separately with no integrated view.

Level 3 — Integrated FP&A

Unified numbers, proper variance analysis, proactive narrative.

Level 4 — Strategic Partner

Scenario-driven, driver-based, automated, and executive-ready. The FP&A team is shaping decisions, not just reporting on them.

Management Reporting Examples

Monthly Management Reporting: The Core Components

Great reporting always includes these elements:

1. Executive Summary (1 Slide)

  • What changed?
  • Why?
  • Risks?
  • Opportunities?
  • Key actions?

Executives often don't read beyond this — it MUST be elite.

2. Revenue & Growth KPIs

  • Actuals vs plan
  • Variances
  • Mix
  • Retention/churn
  • Bookings / pipeline
  • Leading indicators

Use simple visuals: sparklines, bar charts, waterfalls.

3. Profitability & Margins

  • Gross margin
  • Contribution margin
  • EBITDA / operating margin
  • Unit economics

Show trends over time, not single periods.

4. Operating Metrics (By Function)

Sales:

pipeline movement, win rates, productivity

Marketing:

funnel efficiency, CPL/CAC, ROI

Product:

usage metrics, retention, releases

Operations:

capacity, utilization, cost per output

HR:

headcount, attrition, hiring velocity

FP&A = translator between these functions and the financials.

5. Cash Flow & Runway

The most important part for boards. Show:

  • operating cash flow
  • working capital trends
  • burn rate
  • liquidity
  • runway under different scenarios

Learn more about scenario planning →

6. Forecast & Outlook

A forward-looking view using:

  • new data
  • revised assumptions
  • scenarios
  • leading indicators
  • management judgment

Show confidence intervals if possible.

7. Risks, Opportunities, Actions

Executives love this section because it ties insight → action:

Risks:

churn, pipeline softness, inflation, hiring delays

Opportunities:

pricing gains, efficiency wins, strong demand

Actions:

what to do in the next 30–90 days

Make this section crisp and decisive.

The Anatomy of a Great KPI

Most FP&A teams show KPIs incorrectly.

Here's the structure:

KPI = Metric + Context + Comparison + Insight + Action

Bad KPI

"Revenue: $8.1M"

Good KPI

Revenue: $8.1M (↑6% vs last month, +4% vs plan)

Insight: New logo bookings beat expectations; EMEA down due to delayed deals.

Action: Accelerate Q4 pipeline cleaning and tighten forecast accuracy.

Essential KPIs by Department

Finance/FP&A

  • Revenue
  • Gross margin
  • EBITDA
  • Cash runway
  • Plan vs Actual variance

Sales

  • Pipeline coverage
  • Win rate
  • Average deal size
  • Ramp performance
  • Quota attainment

Marketing

  • CAC
  • CPL
  • Conversion funnel
  • ROI by channel

Product

  • DAU / MAU
  • Retention
  • Feature adoption
  • NPS

Operations

  • Utilization
  • Throughput
  • Cost per unit
  • Capacity

HR

  • Headcount
  • Attrition
  • Hiring velocity
  • Time-to-fill

How It Fits Into Modern FP&A

How Modern FP&A Tools Support Management Reporting

Pigment

Real-time dashboards, versioning, driver connections, sleek visuals.

Planful

Structured reporting frameworks + narrative reporting.

Vena

Excel-based reporting with workflow.

Power BI / Tableau

Great for visualization; not great for driver-based insight.

The Biggest Reporting Mistakes Companies Make

  • Reporting too much data
  • No narrative
  • No leading indicators
  • Over-designed dashboards
  • Manual Excel reporting
  • No alignment with leadership
  • No actions

What "Elite" Management Reporting Looks Like

  • 1-page executive summary
  • 6–10 core KPIs
  • 2–3 forward-looking insights
  • 1 page of risks & opportunities
  • Integrated financial + operational view
  • Clean, minimalist visuals
  • A single source of truth
  • A narrative that leads to decisions
  • A clear next step for leadership

Want to level up your management reporting or modernize your planning stack?

I offer a free, vendor-neutral 20-minute advisory call to help finance leaders modernize FP&A and build board-ready reporting.

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