What are Reports?
The term report is broadly used in business parlance. Reports are documents that objectively and succinctly elaborate on a topic. They are prepared with evaluated facts to help address complex situations; thus they are typically used for business planning.
The Purpose of Business Reporting
Reports can be informational—where the purpose is to inform—or analytical—where the purpose is to persuade and give recommendations to readers. Reports can be formal or informal. Formal reports are written for a broad audience that includes a company’s external stakeholders. Informal reports are usually shorter and are written for an internal audience. The purpose of a business report is to provide critical information to business decision-makers so that they can make informed decisions.
Creating reports is a process of collecting and reviewing data from any specific area of the business where performance is measured and monitored. For example, reports are written to review finances, track sales, and review operations and policies.
Reports include conclusions and recommendations which can inform possible actions to be taken in light of the information provided. For example, reports can provide critical information on profits, growth, operations, and trends that managers can use in decision-making.
Since reports are retained, they provide audit trails of business activities and promote transparency, for they can be referenced if the need arises.