Business Reports

Module 4
Business Report
• A business report is a tool that helps in collecting and analyzing
historical and current data from a company's operations, production,
and more. Through various types of business reports, organizations
make critical decisions to ensure growth and operational efficiency.
• A business report is a bunch of facts written in a systematic way
related to a specific business matter as per a set of standard protocols.
It helps concerned stakeholders to get a thorough knowledge of the
problems and how to overcome the problem.
• Business reports are about showcasing a set of business-related information like
facts, analysis, figures, and such. The objective of business reports is to give the
information in an organized manner which helps to make major decisions and plan
for the future. Reports help businesses plan budgets and decide on promotions and
advertisements based on the drafted information.

• When there are different types of business reports, formatting is a concern to draft
a report that makes it easy for the stakeholders to instantly read through the data
without missing out on anything.
Purpose of Report
• Recommend actions: Reports provide findings and offer recommendations based on
systematic and scientific analysis of collected data. These recommendations are the
most expert advices which enable management to take sound decisions and prompt
actions.
• Provide information: Investigational reports provide detailed analysis and highlight
the factual and real information, which can act as basis for planning and controlling
• Presenting facts: Committee reports provides the facts regarding the issue or the
work which facilitate solving complex and complicated problems through the
mature, impartial and combined judgement of expert members
• Record events: Reports help to record the events held so as to act as control devices
for taking corrective actions to ensure successful implementation of plans and
policies for the next time when the same event is held.
Objectives of the report
• Transmitting Information: Business report is very important for transmitting information from
one person to another or form one level to another.
• Interpretation and Explanation of event: Report provides analysis of work topic which helps in
interpretation and explanation of information. As a result, readers can easily understand it.
• Making decisions: A report is the basic management tool for making decisions. The job of a
manager is nothing but making decisions. Reports supply necessary information to managers to
solve problems.
• Communication with external stakeholders: In addition to internal use, reports also
communicate information to the external stakeholders like shareholders, creditors, customers,
suppliers, government officials and various regulatory agencies
• Development of information base: Reports also contribute to the development of information
base in organization. It develops information base in two ways. Firstly, day to day information is
recorded permanently for writing reports. Secondly, the written reports are preserved for future
reference. In these ways, reports help in developing a strong and sound information base.
• Developing labor-management relationship: Reports also help to improve labor- management
relationship particularly, in large organizations. In a large organization, there is little opportunity
of direct communication between top-level management and employees.

• Record event for future use: Reports help to record the events held so as to act as control devices
for taking corrective actions to ensure successful implementation of plans and policies for the
next time when the same event is held.

• Recommending actions: Reports not only supply information but also recommend natural actions
or solutions to the problem. When someone is given the charge of investigating a complex
problem and suggesting an appropriate remedy, the investigator usually submits a report to the
concerned manager
Kinds of Business Report
• On the basis of legal requirement
• On the basis of formality
• On the basis of frequency
• On the basis of functions
• On the basis of subject matter
• On the basis of length
• On the basis of writers
On the basis of legal requirement
• The business reports may be statutory or non-statutory.
• Statutory reports are the reports required to be prepared and presented according to legal
procedures.
• Statutory Report is to be prepared after holding statutory meeting within six months of the
incorporation of the company. In addition to this, Annual Report, Auditor's Report, are Statutory
Reports.
• Non Statutory reports are prepared not because of legal concern but because of necessity felt by
management.
On the basis of formality
• On the basis of formality, business reports may be formal or informal. Formal reports are prepared and
presented in accordance with formal structure and established rules.
• The formal structure of business reports includes:

(a) Preliminary parts: Title, letters or reference of authorization, acknowledgements, contexts, etc.
(b) Body : Introduction, text, summary of findings, recommendations, etc.
(c) Supplemental parts : Appendix, bibliography, index.

• Informal reports do not stress the formal structure, but concentrate more on the body of the report.
On the basis of frequency
• On the basis of frequency, reports may be routine or special reports.
Routine/Periodic reports are reports structured and submitted at regular intervals
(year, half-year, quarter, month, fortnight, week or day) examples of such reports
include Annual Report, Auditor's Report, Monthly Sales Statements, etc.
• Special Reports are reports concerned with single or special situation, for
example, Management's report on strike of labour, feasibility report, etc.
On the basis of function
• On the basis of functions, business reports may be informational or analytical
reports.
• The Informational Reports merely present the facts and summary without
analysing, interpreting and making recommendations. Examples of such report are
Progress Reports, Sales Reports, etc.
• The Analytical Reports present facts after their analysis and interpretation, and
make recommendations if any. Some analytical reports have special
labels-"Recommendation Report", "Proposal" and "Justification Report".
• On the basis of subject matter: On the basis of subject matter business reports may be
Marketing Report, Accounting Report, Production Report etc.

• On the basis of length: On the basis of length reports may be short or long. Short reports are
(a)written in lesser formal coherence plans.

(b)addressed more with personal touch.

(c)presented with lesser introductory material.

• On the other hand long reports are structured in formal style of writing
On the basis of writers
• Individual reports : Individual Reports are reports submitted by individuals like
Auditor, Works Manager, Company Secretary etc.

• Committee Reports are reports submitted by committee, consisting of members.

Committee reports are usually needed when expertise and experience of different
departmental heads is needed for taking business decisions.