WHAT IS BUSINESS REPORT?

Reports are aids to management decision making, planning and control. They fulfil
the information needs of management. They may be originating from an
individual, a committee, a Board or a commission. They are always submitted to
the person or authority seeking it. They may be oral or written. As such, a business
report may be defined as an orderly and objective communication of information
that serves some business purpose.
The main characteristics of a business report are (i) orderliness, (ii) objectivity and
(iii) communication. By orderliness, what is implied is that it must not be casual.
Objectivity means that the report must be based on facts and not prejudices and
personal views. Communication means, that the report must reach the people who
are to make use of it.

NEED FOR AND IMPORTANCE OF BSUINESS REPORTS

Report becomes necessary when there is a problem. The problem may relate to
production, sales, financial status, plant and equipment, new product development,
personnel, plant location etc., Receiving of information in the form of reports and
its subsequent analysis and interpretation is extremely important for the successful
running of business. The management has to plan production and the sale of what
is produced based on information about the production activity during a given
period. Reports are needed to assess situations. They are helpful to test the
correctness of the information already in possession of the management.
Reports are also needed for getting new ideas or insights into problem situations.
Reports are also needed for enquiry and investigation. A wise management, instead
of acting in haste, will ask for a report, and after assessing the situation and
weighing the pros and cons alone will take decisive action. An objective report
presented to unblessed manner will be highly useful for the management to take
appropriate actions in problem stress such as failing sales, etc.,

TYPE OF BUSINESS REPORTS

The business reports lend themselves to several types of classifications, viz.,

a) Informative Reports and Analytic Reports
b) Formal and Informal Reports
c) Statutory and Non-Statutory Reports
d) Short reports and Long reports
e) Letter Reports and Memorandum Reports
f) Oral Reports and Written Reports
g) Routing and Special reports.

Informative Reports: Informative reports carry only facts without any

recommendations or opinions. Daily sales report, production report, expenses
report etc., fall in this category. These reports serve as bases for making decisions
by management later.
Analytic Reports: In addition to the facts, analytical reports present an analysis of
the facts along with the interpretations, recommendations and suggestions. For
example why sales have fallen during the last season may be studied and the
findings presented in an analytical manner.
Formal Reports: Formal Reports are prepared and filed with the appropriate
authority, viz., and the Registrar of Joint Stock companies in accordance with the
requirements of a law or order or appointment made. Such formal reports may be
statutory or non-statutory.
Informal Reports: Informal reports are communication from one person to another
without any formal requirements or order, etc. It may be written in the form a
letter.

Statutory Reports: The Companies Act, 1956 requires that a company should
submit the following reports to the Registrar of Companies viz. Statutory Report,
Director’s Report, Annual Return, Auditors’ Report and Report of Inspectors
appointed by the central government for investigation into the affairs of a
company.
Non-Statutory Reports: Non-statutory reports are a part of an information system
designed to help the management in formulating policies, making decisions,
planning, budgeting, etc., These may be sent to the management on a regular basis
or when required. Examples of non-statutory reports are: 1) Directors’ report to
shareholders, 2) Financial Reports, 3) Report on meetings, 4) Reports by executive
heads and officers of the company, 5) Reports of Committees of Directors or
Special Committees, 6) Reports of the Secretary
Short Reports: Short reports are more common in business world. They need little
introductory material. They begin directly with conclusions or recommendations.
Personal writing is common in short reports.
Long Reports: Length and formality characterize long reports. It has a number of
components or parts viz., 1) Preparatory part, 2) Report Proper and 3) Appendices.
It is to be arranged in a highly technical manner.
Letter Reports: Letter Report is the common form of short report. It is written in a
letter form. It is meant for someone outside the organization and is sent by mail.
Memorandum Reports: Memorandum Reports are between people who know each
other. These are written quite informally. They are used in relation to routine or
day-to-day affairs or problems. They have no introductory comment. Most
memorandum reports are problem related.
Oral Reports: Oral reports are by means of spoken words by one person to
another. It saves the time of the reporter. It is not suitable for serious
communication or information meant for storage and analysis for appropriate
interpretations and follow up actions.
Written Reports: Written reports save the time of busy executives who may read
them when they are free. They become permanent records. They are not likely to
be misinterpreted. They tend to be complete and accurate.
Routine Reports: Routine reports are those sent by departmental heads, salesmen
etc. to the management which are insisted upon for control and feedback purposes.
They may be sent periodically without waiting for specific demand.
Special Reports: Special Reports may be called for from the Secretary of the
company, auditors and technical personnel pertaining to specific situations or
problems. The secretary may be asked to report about the unrest among the staff.
The auditor may be asked to make an investigation on the suspected defalcation
and report; and the technician about the frequent breakdowns in machinery
affecting production schedules.

CHARACTERISTICS OF A GOOD BUSINESS REPORT

A good business report if it is to serve the purpose for which it is demanded should
possess the following characteristics:
1) Clarity
2) Accuracy
3) Brevity
4) Restrained Language
5) Convenience
PARTS OF A FORMAL REPORT

The parts or format of formal report include the following; (a) The heading or title.
(b) Letter of Transmittal (c) Table of Contents, (d) Body of the report, (e)
References and Bibliography, (f) Index

Heading or Title: In a long report it is given both on the cover page and the inside
sheet next to the cover. In a short report, it is written on top of the first sheet only.
Letter of Transmittal: A letter addressed to the authority to whom the report is
submitted may be included after the inside title sheet.
Table of Contents: This shows chapter titles with pages duly marked. A separate
table of contents for charts, tables and diagrams is given.
Body of the Report: The body of the report will contain (a) introduction, (b) the
development of the subject and findings, (c) conclusions and summary.
Signature: The report should be signed.
References and Bibliography: This will be forming part of the report only when it
is based on extensive research. It is nothing but a list of books, reports etc., cited in
the report or consulted.
Index: For lengthy reports giving index at the end of the report is meant for easy
reference of specific points.
Now you may go to study the specimen reports given.