Reporting to management provides information to enable managers to assess performance and take corrective actions if needed. It involves systematically providing managers with only the necessary data to aid their understanding and decision making. Management reports are prepared for communication, to satisfy interested parties like shareholders, and to meet legal requirements. They help management understand operations, identify weaknesses, regulate employee performance, devote time to policymaking, and measure future actions. Reports are categorized as external, internal, routine, special, operating, financial, and by management level - top (board of directors, finance director etc), middle (production, sales managers) and junior (foremen, supervisors).