Report

Reports are documents designed to record and convey information to the reader. Reports are part of any
business or organization; from credit reports to police reports, they serve to document specific information for
specific audiences, goals, or functions. The type of report is often identified by its primary purpose or function,
as in an accident report, a laboratory report, a sales report, or even a book report. Reports are often analytical, or
involve the rational analysis of information.

Essentials of a Good Report!

1. The report should have a proper title to describe the subject matter reported therein. The report should be in a
good form and should have subheadings and paragraph divisions. The name of recipient of the report should be
written on the top of the report.

2. The report-should be factual. The whims and ideas of the person preparing the report should not be allowed
to influence the report.

3. The report should relate to a certain period and the period of time should be indicated on the top of the report.

4. The report should be clear, brief and concise. Clarity should not be sacrificed at the cost of brevity.

5. The reporting must be prompt because information delayed is information denied. If a considerable time
elapses between happening of events and reporting, opportunity for taking appropriate action may be lost or
some wrong decisions may be taken by management in the absence of information.

The periodicity of a report should be kept in mind and reports should be submitted in time. The report should be
in a good form and should have sub-headings and paragraph divisions.

6. A report should distinguish between controllable and non-controllable factors and should report them
separately. It is because management can take suitable action regarding controllable factors.

7. Appropriate remarks should be given in the report. It saves valuable time of the management and ensures
prompt attention. Adequate data should be given to suggest possible course of action.

8. A report should be periodically reviewed. The form and contents of a report should not be of permanent
nature. They should go on changing with the change in circumstances; otherwise the recipient will take them as
stale useless and routine type.

9. The report should be taken as correct within the permissible degree of inaccuracy. The margin of error
allowed will depend upon the purpose for which the report is prepared.

10. The report should draw manager’s attention immediately to the exceptional matters so that management by
exception may be carried out effectively. Thus, reports should highlight significant deviations from standards.
11. Visual reporting through graphs, charts and diagrams should be preferred to descriptive reports because
visual reporting attract the eye more quickly and leaves a lasting impression on the mind.

12. Where comparison is reflected in a report it should be ensured that the same is between comparable (i.e.,
like) matters so that meaningful comparison may be made and idea about efficiency or inefficiency may be
formed.

13. In all possible cases a detailed analysis should be given for all the resultant variances between actual for the
period compared to standards/budgets, be it sales, purchases, production, profit or loss, capital expenditure,
working capital position, etc., so that exact causes of low performance may be known and timely corrective
action may be taken.

14. The format of a report should not be changed from period to period, if the format is to be changed for
making any improvement, justification for change in the format or contents should be given.

Purposes or Objective of Business Reports

Reports are the primary means of communication in organization. In large-scale organizations, there is no
alternative to use reports. Reports also play an important role in small-scale organizations. Some points
highlighting the purposes or objectives or important of business report are presented below-

Transmitting Information:

Business report is very important for transmitting information from one person to another or form one level to
another. Although a manager can personally collect required information in a small scale enterprise, it is not
possible in the context of a large scale organization. In the latter case, the managers rely on reports for obtaining
necessary information.

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. In the absence of formal
business report such stakeholders would remain at dark about the organizations.

Development of information base:

Reports also contribute to the development of information based in organization. It develops an 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 an h3 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.
In this case, report is used as mechanism of keeping both sides informed about each other and improving their
relationships.

Controlling:

Controlling is the final function of management It ensures whether the actual performance meets the standard.
In order to perform the managerial function of controlling, report serves as a yardstick. It supplies necessary
information to impose controlling mechanism.

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.

Above discussion makes it clear that reports are the commonly used vehicles that help mangers in planning,
organizing, staffing and controlling. In a nutshell, report is indispensable for carrying out the management
functions. Report is the nerve of an organization that circulates information.

Types of Business Reports

The information may be facts figures or a detailed analysis of any situation. Businesses make important
decisions and plan for the future of the company based on these reports and hence the importance of such
reports is self-established. Major decisions like investments and expansions are based entirely on Business
reports.

Thus, business reports form a very important part of every business. There different types of business reports
based on their need and the situation.

Types of Business Reports used by Organizations

1) Formal Business Reports

These reports are prepared in a given format and they are presented to the authorities in an already established
manner. They are submitted to committees and bodies or heads of various departments or organizations. Since
the report talks only about business in a formal way they are termed as, formal business reports.

Formal reports of other classified into the statutory report and non-statutory report.

2) Informal Business Reports

These reports are prepared in a convenient format which is convenient to the reporter and presented to the
required person immediately after demand. These reports can also be presented in the form of a memorandum
or a Business Letter. Since there is no fixed format for these reports it is termed as informal reports.

3) Informative Business Report

These are types of Business reports which are prepared with the intention of providing information in a
descriptive way which address is a particular issue or situation or a problem. They provide information in an
exhaustive and detailed manner which is used for the by the authorities to gain an insight on the matter that is
why they are termed as informative reports.

4) Interpretative Business Report :

Unlike informative report which contains only information, the interpretative report contains facts opinions
views or numbers which help to interpret a certain information situation or a problem. The interpretative report
may also contain reasons for a certain issue as to why a certain event or an issue occurred and what would be
the course of action along with a recommendation for the same.

5) Verbation Business Reports

The report which is prepared by secretaries or any other individual which record word to word discussions that
are made in the meeting are called Verbatim reports. For example, in case of auditor appointment resolution has
passed in the meeting and that reservation is recorded as word to word as Verbation report. Also, in the case of
voting where joint votes of different members are taken into consideration, the verbation reports include names
and manners of voting along with the results. These types of business report should not be confused with
minutes of the meeting which is a record of proceedings and decisions a summary of the meeting.

6) Summarized Business Reports

The report that is made with the assistance of important details that have been discussed in the meeting is called
a summarized report. These types of business reports are made with the intention of sending it for the press
release or for the shareholders of the company or a member of the certain institution.

7) Problem Solving Business Report

As the name suggests, problem-solving business report help to solve a problem by suggesting or recommending
a plan of action regarding a certain situation. The report also contains causes of such problems and the
conclusion is done in various ways that can be adopted to solve the problem. The report also contains ways in
which that problem can be avoided in the future by implementing certain steps.

8) Fact Finding Business Report

There are numerous situations in an organization where a finding of a fact is required. For example, the
breakdown of machinery in factory premises or rivalry between associate and the manager. The situations
require in-depth reasoning for the situation that has arisen. In those cases, the fact-finding report comes in
handy which presents facts in the report from a third person view. These reports are presented to the top
management based on which they can take action about the situation at hand.

9) Performance report :

The management likes to know the performances of each department on a regular basis. Not only that but also
about the newly opened branch, newly appointed employee or even the performance of existing employees who
are due for promotion are analyzed by the management for which the performance report is generated. These
reports are important for the management to arrive at a decision and hence these reports are prepared by the
seniors of the respective people

10) Technical Business Reports

Technology is advancing faster than the speed of light and that is the reason why companies upgrade
themselves with new technology is from time to time. Whenever such a monumental change and Technology is
taking place in an organization a Technical Business Report is prepared to assess the level of Technology.
These reports include a detailed way to undergo the change including time and money that will cost, which
helps the top management to take a decision.

11) Standing Committee Report

A committee which is appointed for a specific reason is called standing. The reason may be financial
assessment, employee Assessment, or departmental assessment, the standing committee is expected to submit a
detailed analysis of these things. The report submitted by the committee is known as a standing committee
report. In many organizations please reports are submitted at frequent intervals.

12) Ad-hoc Committee Report

Adhoc reports are also termed as special committee reports. As the name suggests special committee is
appointed to deal with the investigation and that committee is dissolved as soon as the report is presented.
Special communities are found in special cases like fire in factory premises are employee accidents during
work.

13) Minority Report

A team of the special committee is appointed to submit a report which will be based on an investigation of a
special subject. 3 members may be selected to form the committee one of each is the chairman of the said
committee. If members have a difference of opinion on the subject the other members may submit the report
separately. This separate report submitted by dissentient members is called minority report.

14) Majority Report

 The members of a committee which including the chairman, usually have unanimous decision amongst them. In
such cases, only one report is prepared and presented to the official committee. If that is not the case then the
majority of the member from their own report and submitted to the examining authority. Such a report is termed
as majority report.

15) Annual Report

A yearly report, which consists of the yearly processes of the business including the sales profits and the
turnovers is called the annual report. Such a report generated only once a year and is submitted to the corporate
heads for studying the business year in detail. Majority of crucial decisions like
investments, product portfolio changes, marketing strategies, marketing campaigns etc. are planned on the basis
of the Annual report. Pre-decided plans may be modified or changed based on Annual reports.

Report Writing

 Title Section – This includes the name of the author(s) and the date of report preparation.
 Summary – There needs to be a summary of the major points, conclusions, and recommendations. It needs to
be short as it is a general overview of the report. Some people will read the summary and only skim the report,
so make sure you include all the relevant information. It would be best to write this last so you will include
everything, even the points that might be added at the last minute.
 Introduction – The first page of the report needs to have an introduction. You will explain the problem and
show the reader why the report is being made. You need to give a definition of terms if you did not include
these in the title section, and explain how the details of the report are arranged.
 Body – This is the main section of the report. There needs to be several sections, with each having a subtitle.
Information is usually arranged in order of importance with the most important information coming first.
 Conclusion – This is where everything comes together. Keep this section free of jargon as most people will
read the Summary and Conclusion.
 Recommendations – This is what needs to be done. In plain English, explain your recommendations, putting
them in order of priority.
 Appendices – This includes information that the experts in the field will read. It has all the technical details that
support your conclusions.