Day 2.

Report Accountancy

Meaning:
• Statement or an account, either big or small, on some happenings, findings, observations or
recommendations prepared either by an individual or by a group.
• Reports play a major role in the progress of business. Reports are the backbone to the thinking process
of the establishment and they are responsible, to a great extent, in evolving an efficient or inefficient
work environment.
• Report is a brief analytical written statement prepared by authorized body containing facts, detail
conditions and present positions of the problem during certain period with recommendation.
• It is a historical statement.
• It consists of the problems, progress, achievement, facts, information etc. regarding the problem under
study or job.
• It reflects the real condition of an organization.

Importance of Reports:

• Report plays an important role in our life, business, commerce and trade. Actually it helps to find out the
root of a problem to solve that. By the way, it contains its importance for its own special features. And
such importance can be understood through the following discussion:

1. Decision Making Tool: Today's complex business organizations require thousands of information.
Reports provide the required information. A large number of important decisions in business or any
other areas are taken on the basis of information presented in the report.

2. Investigation: Whenever there is any problem, a committee or commission or study group investigate
the problem to find out the reason behind the problem and present the fount output with or without the
recommendation in the form of a report.

3. Evaluation: Large scale organizations are engaged in multidimensional activities. It is not possible for
a single top executive to keep personal watch on what others are doing. So, the executive depends on
reports to evaluate the performance of various departments or units.

4. Quick Location: There is no denying the fact that business executives need information for quick
decision making. As top executive are found to be busy for various purposes, they need vital sources of
information. Such sources can be business report.

5. Proper Control: Whether activities are happening according to plan or not is expressed through a
report. So, controlling such activities is implemented based on the information of a report.

6. Managerial Tool: Various reports make activities easy for the managers. For planning, organizing,
coordinating, motivating and controlling. A manger may find help from a report which acts as a source
of information.
Features of Reports:
• A report is based upon facts and also very often supported with some statistics data, references etc.
• A report has to be prepared in a proper form and style. The form and style depend on the purpose of the
report.
• A report has definitely a purpose. One common purpose is spreading of information. Other purposes
are—compiling of record, providing guidance to action or judgment, making of evidence, etc.
• A report is meant for circulation either exclusively to an individual, or group of individuals, or members
of an organization or public at large.
• Reports are of various types.
• Reports are closely related to meetings.

Types of report:
1. Government report
2. Audit report
3. Committee report
4. Educational report
5. Annual report

Consideration for drafting report:

a. The report writer should state the objective and duration of the report clearly.
b. The language of the report should be simple, clear and easy to understand.
c. It should contain necessary facts, datas and information in appropriate tables and diagrams.
d. The report should be complete so that it could not create any confusion to the reader.
e. If the writer likes to give opinions and suggestions, he/she mention them in a separate paragraph.
f. At last, report writer must sign on it for its validity.