What Is a Business Report and How to Write It?

Businesses consist of interactions between different parties - between employees and employees, between employees and managers, between employees and customers or suppliers, managers and banks or investors, and more. Due to the multitude of interactions, business reports are necessary.

What Is a Business Report?

A business report is a means of internal communication in companies. This type of documentation is used to share relevant data, research results, new ideas, statistical data, and many other items. Both small and large businesses can use business reports. But in practice, they are more common among large corporations. Big companies have no other efficient means of communication. 

The Use of Business Report

A business report is a document that helps to study a company's performance, help make decisions, manage resources, etc. Employees write business reports for upper management. Based on facts and data, upper management makes decisions (to create a new product, lay off staff, etc.). Upper management writes business reports to inform employees about course development.

Types of business report

• Informational report. This type of report includes collecting objective information and facts. It doesn't explain things.
• Analytical report. Includes not only facts but also analyses. This type of business report is meant to help in decision-making.
• Research report. Is used when a team is trying to move in a new direction. They collect relevant data, best practices, and statistics to figure out how to do it successfully.
• Explanatory report. It is used when you need to explain something so everyone can understand it.
• Progress report. This report shows the audience the current situation, the development process, and how things are going.
• Problem-solving report. Offers ways of solving a problem and avoiding it in the future.
• Formal/informal reports. Formal reports are written in a particular format; as a rule, they are written for official purposes. Informal reports are written when it is possible not to use specific designs.
• Annual report. Is the analysis of all activities and processes in a company that took place this year.
• Financial report: A financial report is a report that presents the financial situation of the business. The finance department or the company's accountant will prepare the report. One of the types of financial report is a business valuation report. This report will show the value of the business.

By the way - if you need a business valuation report, you can build a professional report in 30 minutes using our intuitive ai based business valuation software or our business valuation calculator, or you can contact us for free advice.

What are The Components of a Business Report 

Each business report has a different purpose. Therefore, each business report will be structured differently. Despite this - the general structure of business reports is the following structure:

• Title page. Title, author(s), submission date, etc.
• Table of Contents (TOC). Report structure.
• Abstract. A short report overview.
• Introduction. Describes the objectives of the report, main points, design, etc.
• Body. The central part of the report. May contains several sections.
• Conclusion. Summary of the significant issues of the report. Answers to the questions raised at the beginning of the report.
• Recommendations. Author's suggestions.
• References. Sources used in the report.
• Appendices. Background information.

Five Tips for writing a business report

1. Figure out the purpose of your report. Do you want to show important data, share information, or solve a problem? That matters a lot. The purpose defines the structure of your report.
2. Pay attention to facts. They make your report reliable.
3. Use tables, diagrams, screenshots, and other visuals to support your report. They work well.
4. Use clear and concise language. It will make your report more readable. 
5. Follow your company's style guide. The reader hopes you use a particular format, font, colors, etc.

A business report is a must-have in any big company. It may influence the way a company is developing. That is why choosing data carefully and conveying trustworthy information is especially important.