Importance of business report

Report is an important form of business communication It is used for many purposes. It carries information that is very useful in decision-making and problem-solving. Reports are carefully prepared That's why managers depend upon reports to a great extent. 

Importance of Business Report

The importance of a business report is discussed in the following:

1. Decision making: Reports are used as tools for making effective decisions Managers depend more on reports than any other information for making decisions. 

2. Problem solving: Report is special in solving complex organizational problems. When a complex problem arises, someone is asked to investigate the causes of the problem and to indicate recommendations for solutions. Thus, serious problems can be solved. 

3. Source of information: Reports are important sources of information. Manage depends much on reports as the sources of accurate information. In a report, accurate information is presented. That's why it is frequently used as a source of information. 

4. Permanent record: Reports are used as permanent records. When necessary it can be used as evidence of record. In this context, it is also important. 

5. Help in routine work: It helps in the daily routine work of the organizations. Some kinds of reports are used as tools of transferring information on daily transactions of any business organization. Thus, it helps in the routine work of the enterprise. 

6. Evaluating progress: It helps in evaluating the progress of work or business. There are reports which are used to evaluate the situation or the progress of work or conditions. They are generally called progress reports. 

7. Development of skill: Reports help in developing the writing skill of the reporter. While writing reports, the reporter is to select suitable words and use correct vocabulary and languages which help in developing the writing skills of the reporter.

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8. Reduces administrative costs: The report reduces the management and operating costs of the organization by providing the right information at the right time. 

9. Media of communication: It acts as the media of communication. Lower-level executives communicate with their bosses with the help of reports. 

10. Achievement of goal: Directors of the company make different decisions on the basis of audit reports, financial reports, technical reports, and so on, which helps in achieving the goals and objectives of the business organization.

11. Aids in establishing good relations: Reports play a vital role in maintaining good relationships among bosses and subordinates.

12. Neutral presentation of facts: Sometimes it becomes very necessary to represent the facts neutrally Report helps then providing impartial facts.

13. Effective coordination and control: Report helps to coordinate among the departments of an organization. Reports are sometimes used as control devices. Higher authorities or head office establishes control on the lower level officers or branch executives based on reports. Thus it is used as the tool of control. 

14. Publicity: General people may be benefited from widely circulated reports of any fact. 

15. Helps reduce complex situations: The report helps reduce the tension and complexity of various interest groups by providing fair information. 

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16. Interpret and exchange information: Importance of business report can help to interpret and exchange information according to need. 

17. Others:

• Analyzing data for interpretation 
• Communication with external stakeholders  
• Supplying the latest information 
• Reduce and resolve organizational disputes
• Present the findings of the investigation 
• Recommending specific action to solve the problem, etc.