Making formal business report

Formal business reports have important functions in helping managers and executives make
decisions. These documents can have a variety of purposes depending on the needs and industry.
A formal business report is an official document that contains data, research, information and other
necessary details to help decision makers form plans and objectives to help the company.
Depending on the topic, a formal business report could be several pages long and include extensive
data and information. Here are a few of the most common types of formal business reports,
designated by purpose:
 Justification/recommendation report: This report can be used to propose an idea to
management. The body would include sections like risks, costs and benefits.
 Investigative report: This report presents the potential risks of a specific opportunity.
This report is helpful for business owners to anticipate any issues involved in making
an investment or purchase. It is also possible to create a formal business report to
analyze a proposed merger.
 Business plans: They are typically informational reports about what a new or
existing company plans to do over the next period of time.
 Proposals: This type may be internal to a company in addressing a business situation,
or they may come from a solicited or unsolicited sales situation. Formal proposals
will include details of the proposed solutions and costs.
 Compliance report: This report is used when the organization wants to show
accountability and create a compliance report. It is a report that allows an organization
to prove that it is following regulations and that it is spending money properly.
 Feasibility report: This type is used to analyze the outcomes of a proposed idea. The
report can cover potential problems, associated costs and the benefits of the idea. With
this report, it is possible to determine if the proposal will be profitable, if the deadline
is feasible and if there's a chance it can exceed the budget.
 Research studies report: This report helps to analyze a problem. The report would
include recommendations to resolve the problems.
 A periodic report: This report helps an organization improve its products, services,
processes or policies. The report can include things like profit and loss information or
it may examine efficiency.
 A situational report: To discuss a specific topic, such as information from a
conference, a situational report is used.
 A yardstick report: You can use this report to present several solutions as options to
a particular situation.
A formal report in business is closer to the kinds of reports you may have encountered in an
academic setting. A formal business report is generally longer than an informal report and contains
many specific sections and labels. These sections and labels may come from company policy and
practice or be prescribed by the outside organization the report is being sent to. Formal reports
contain detailed information and research. They can be used to address a wide variety of topics,
ranging from larger internal problems or proposals to an external client.

Formal reports may have internal or external audiences. They often include a complex number of
references and appendices.

In a formal report there are three major sections.

1. The front part includes sections that come prior to the report itself to establish
various items such as authority of the report and intended audience.
2. The body of the report has many sections of key information and possible analysis. It
is the meat of the report.
3. The back matter contains sections of material that support the body.
Front sections may include the following:
 Transmittal letter
 Cover page and Title Page
 Table of Contents
 Executive Summary
You will (or not) use these sections based on the context of your report, the information your
audience needs, and your company’s policies.

A transmittal letter is sent to the company or business leader who requested the report. This letter
may be sent separately from the report. It describes the need for the report and the date of report
completion. The letter includes the background of the project, a reference to the problem analysis,
and outlines the procedure used to determine the recommendations presented. This letter can be
used in both informational and analytical reports. It should be formatted as a standard business
letter.
Almost all formal reports have a Cover or Title Page, perhaps both. These two pages are used in
nearly identical ways, yet some report types or organizations require both with a slight modification
to the page’s purpose.

A cover page is a very simple, precise, brief way to introduce the report to the reader. This should
contain:
 A specific title in large font
 Company name
 Name of the author(s)
 Date of the report
 Relevant picture
One goal of the cover page is to be informative and scalable because once it is filed, it will need to
be easy to pick out of a stack of other reports. A second goal is to make the report stand out. The
cover page is the first thing that is seen: it will be the foundation for first impressions, for better or
worse. 
One easy way to make the report stand out is to use a theme for the report that your audience can
connect to. With a carefully chosen color scheme and images, it is possible to help the reader
believe that he or she is the most important aspect of the report.
The title page is an opportunity to provide more specific, detailed information about the document
and its authors to its intended audience. It will be very similar to your front cover and it repeats the
information on the cover, but adds more important details. 

Formal reports are frequently lengthy and contain a Table of Contents to assist readers. The use of
these sections in larger reports allows readers to quickly access the area of their interest: these
sections list important headings or figures in the report alongside their corresponding pages. 

In creating a TOC, you have a number of design decisions:

 Levels of headings to include. In longer reports, consider only including the top two
levels of headings. This keeps the TOC from becoming long and unwieldy. The TOC
should provide an at-a-glance way of finding information in the report quickly.
 Indentation, spacing, and capitalization.
 Vertical spacing. The first-level sections have extra space above and below, which
increases readability.

An executive summary is just as the name says: it summarizes all the materials that follow in the
report. A good way to approach the executive summary is to write it as if the executive or decision
maker will only read this section, even though that’s unlikely to be the case.
Executive summaries should be written after the entire report is completed. This allows the
summary to be both comprehensive and well structured. This section is offered in paragraph format,
with a paragraph summarizing each section in the report; thus, the executive summary is presented
in the same order as the report.

Body sections of the report

The body of a report is what comes to mind when most people think of a report; it’s the primary
content.
Several sections that are frequently used in formal reports:
 Introduction
 Background
 Purpose (or problem statement)
 Research (or methods)
 Recommendation (or solution)
 Overview of alternative options
 Evaluation
 Benefits
 Qualification
 Management
 Implementations
 Schedule
 Methods of operation
 Costs
 Conclusion
This list may look intimidating, so it’s important to keep in mind that this isn’t a Table of Contents
for every formal report. Remember, as the writer, you should use what best suits the material’s and
organization’s requirements.

An introduction sets up the structure of a report. Essentially, the introduction tells the reader what is
to come and in what order, and it reminds the reader of the key criteria that instigated the report’s
creation. Depending upon readers’ expected reception of the content, the introduction may
foreshadow the conclusion. With receptive audiences, the outcome is clear in the introduction. With
less receptive audiences, it is important to present all the facts and research prior to declaring a
conclusion; thus, for less respective audiences, it may be better to foreshadow the conclusion than
to fully declare it. This allows the reader to end up at the same conclusion as the author as details
develop. The introduction may also include the problem statement or purpose of the report.

The background section of a report explains the circumstances that led to the report’s creation. It
provides a baseline of the current situation and any potential constrictions such as budget, time,
human resources, etc. This section explains why the investigation or work was completed.
The research section is where authors establish their credibility as they show how their perspective
is supported by outside experts. This section provides background on where data used in the report
was found: it is not a section where data is listed.

The recommendation section may stand on its own, or it may have several subsections depending
upon the complexity of the report. This section is found only in analytical reports.
Overview of alternative options. This section is typically used in informational reports, where no
recommendation is made.

The evaluation section should state the end results of your research and detail how you got there:
how you evaluated the alternatives and, from there, you would decided which alternative best fit
your organization. This section is found only in analytical reports.
The benefits section explains the benefits of the solution. This section is found in analytical reports,
especially in proposals.

Qualifications section may stand alone or be part of the benefits section. It is a good place to
explain the talent and experience of yourself and your team members.

Management section may stand alone or be part of the benefits section. In some cases, the resumes
of the proposed team for the project are requested or provided. By identifying each person on your
team and explaining what their tasks and responsibilities are, you can coordinate your work
efficiently.

The implementation section details when, why, and how the solution will be used for the first time.
The implementation period is usually a trial period to see if the solution is feasible as planned.

A schedule section may be found separately if the product or project is complex. Schedules help
provide readers with three things: 
1. Schedules give readers a deadline, so they know when to expect a final result. 
2. Schedules can be critiqued by readers to make sure they are feasible. 
3. Schedules are a good way to keep track of how a project is proceeding.
In addition to project deadlines, schedules should also include due dates for drafts, resources, and
other information that is needed to assist you with your project goal.

Methods of operation section describes how the solution will fit into and be used as a functional
part of the day-to-day operation of the company, business, etc.

The costs section tells how much the solution will cost. This section is generally presented after all
the explanation of implementation, benefits, etc.

The conclusion finishes the body of the report: it provides a summary of the major ideas of the
report. The closing of a report should never introduce a fact or idea not presented earlier in the
report.
Formal reports may be informational or analytical. The logic and general structure is the same as
with informal reports discussed earlier in this chapter. What changes is the depth of each part of the
formal report.

Writing formal reports follows three steps. First is the planning, second is the writing, third is the
revising.

Planning
In all business writing, the first step is to check and see whether there is a prescribed structure for
the document that is about to be created. If so, follow that. Many formal reports have specific
formats that must be followed exactly.
With a formal report, there may be many contributors. If so, it is important to meet as a group to
divide the work, talk about style, and plan how the final document will be assembled and edited to
ensure a common voice or tone throughout.
Next step is to complete any data gathering needed. A formal report likely requires extensive
planning and data gathering: some proposals may require weeks or months in researching and
preparing.
The knowledge of that data will be used to create the report’s outline. In constructing that outline,
again consider the depth of understanding of the reader and the likelihood the reader’s views align
with that of the report’s determination.

Writing
Writing the formal report is a much easier task once you have created a detailed outline in the
planning process. This outline is what helps the writing move along, as you already know exactly
what is to be provided where and when.
With a formal report, it is extremely rare to see the casual phrasing that might be found in a short
message or informal report. Formal reports rarely use personal pronouns, contractions, or passive
verb structures. However, this does not mean the language should be stilted or use excessively long
words.
Formal reports implement many of the formatting skills. Usually formal reports are single spaced
with double spaces between paragraphs. Usually paragraphs are not indented, but this may vary
from organization to organization. The right hand side of paragraphs are left ragged. Section
headings are always provided in a formal report. It is acceptable to use labels to match the section’s
purpose (e.g., Introduction, Findings, Research Methods). Formal reports of all types use page
numbers.

Revising
Because of the length and possible subject complexity of formal reports, the final review takes more
time than you might expect and involves more people.
The most effective way to ensure a professional document is to have a team of individuals
independently read the document, marking changes, corrections, and questions as they go. The final
revision must consider both grammar and style issues as well as revisiting the primary purpose of
the document.

References:
1. https://www.indeed.com/career-advice/career-development/formal-business-report-
example
2. https://courses.lumenlearning.com/wmopen-
businesscommunicationmgrs/chapter/formal-reports/