Before we try to comprehend the significance of business reports, let us try to conceive a reasonably accurate concept of what a business report really is. It is “a very useful tool, an instrument of managerial control.” This is an accurate description of a business report though. To put it simply, a business report may be explained as a special kind of information, on which a candidate in authority may take a special decision.
In the modern, expansive and highly complex business world, important decisions have to be taken almost daily because complicated and difficult problems continue cropping up. The management engages the services of well qualified and experienced executives to write special reports on the problems. They write these reports by conducting surveys, investigating the matter thoroughly and submitting their findings along with their recommendations or suggestions.
As already stated, these special reports are always written by well qualified and experienced people. The management always likes to rely on them and accept their recommendations and suggestions if they are found workable as well as profitable. Thus the special reports play a great role in the planning and organization of a business house. But it is not the planning and organization of a business alone which come under the review of a special report, it is the whole of business which benefits by it.
When the industry is to be expanded, scores of special reports have to be prepared and gone through before the board of directors can arrive at a safe decision. Often, even the routine direction of administrative and manufacturing units; require the assistance of special reports whenever serious problems crop up.
A business report can be important for investors as:
– It occupies information about ups and downs of a business.
– It assists to generate a record of the preceding years.
– It helps to find out the high and low scores in an enterprise.