How to Write a Formal Business

Report (With Examples)?

Formal business reports have important functions in helping managers

and executives make decisions. These documents can have a variety
of purposes depending on your needs and industry. Learning how to
write a formal business report can help you develop as a professional.
In this article, we explain what a formal business report is, how to
write one and provide an example.

What is a formal business report?

A formal business 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 a purpose:

Justification/recommendation report

You can use this report to propose an idea to management. The body
would include sections like risks, costs and benefits. An example of
this type of report would be to propose buying a machine for your
workplace. To convince the decision-maker to buy the machine, you
would create this report to make a convincing argument.

Investigative report

This report can present 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. You could also create a
formal business report to analyze a proposed merger.

Compliance report
Use this report 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. For example, an accountant could write a
compliance report to show the company followed federal laws
regarding spending.

Feasibility report

When you need to analyze the outcomes of a proposed idea, you can
use this report. The report could cover potential problems, associated
costs and the benefits of the idea. With this report, you can determine
if the proposal will be profitable, if the deadline is feasible and if
there's a chance it could exceed the budget.

Research studies report

This report helps you 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. For instance, a retail store
would have a monthly report on its sales.

A situational report

To discuss a specific topic, such as information from a conference,

use a situational report.

A yardstick report

You can use this report to present several solutions as options to a

particular situation.

Related: Documentation in the Workplace

How to write a formal business report?
Follow this step-by-step guide to create a professional business report:

1. Plan before you write

Treat the formal business report as you would handle a project. Before
you start compiling research and writing down sections, plan exactly
what you want to achieve. In doing so, you will have a better chance of
creating a report in a clear and simple style.

2. Check for an in-house format

The company you work for may already have an established format for
formal business reports. Check your company handbook or ask the
person who wants the report to see if there's a specific format you
should use. Using an established format will help your report look
more professional.

3. Add a title

You might get the title of the report with the brief or you may write it
yourself. Make sure the title is clear and visible at the beginning of the
report. You should also add your name and the names of others who
have worked on the report and the date you wrote it.

4. Write a table of contents

The table of contents page should follow the title and authors. The
table of contents page is essential for a formal report that is long and
complex. Although this page comes at the start of the report, it should
be written last when the report is finished. Write down the section
headings exactly as they appear in each section of the report and
make sure the page numbers match too.

5. Add a summary or abstract

The summary summarizes the main points of a formal business report.

It can be beneficial for the reader to have this section, but it is not
mandatory, especially if your report is short. It is best to ask the
person who has requested the business report if they prefer a
summary or abstract. Although the summary comes at the beginning of
the report, you should write it last, along with the contents page, so
that you can include notes from your conclusion and recommendations
section.

The summary should tell the reader about your findings and even draw
on points from your conclusion. A brief overview of what the reader
will find in the report is also important. Your manager may only have
time to read the summary of the report, so it must describe the major
points found in the report.

Related: 5 Steps for Great Business Writing (With Tips)

6. Write an introduction

This section will detail the reason why you are writing the report. The
introduction should address the purpose of the report and background
information on the subject you are writing about. Include any
definitions and summarize the main argument.

7. Outline your methodology

The methodology section should explain to the reader the research

methods you have chosen to create this report, such as using a
qualitative method, a quantitative method or a combination of both. It
should be a clear justification of why you chose to use certain
methods.

8. Present your findings

This section is where you should present the outcome of your

research. It is important to present your results logically and
succinctly while making sure that you have included enough
information to prove that you have researched the matter thoroughly.

One way of making the findings easier to read is by using headings,

subheadings and numbered sections to organize everything. You can
choose to present your findings in bullet points or with the help of a
table. You might also choose to present your findings with illustrations
and graphics—such as infographics—but be sure that these graphics
are appropriate for the report.

9. Finish with a conclusion and recommendations

In this section, you would present your assessment from the findings,
then make recommendations for action. If you add any goals, you
should add measurable actions to them. Each goal, method or option
suggested should tell the reader how it will affect the organization.

10. Add a bibliography and appendices

Include all of the sources you have used to write the report. These can
include periodicals, online articles or books. List the sources in
alphabetical order. You can also include all of the material to support
the report. These may include questionnaires, maps, notes,
summaries, charts, tables, illustrations and others. Label each note,
map and other documents with a letter so that you can reference them
clearly in the report.

12. Proofread

Once you're finished writing your report, proofread it to make sure it's
free of any grammatical or spelling errors, which will make your report
more credible. Moreover, be clear and concise when writing. Avoid
complex words and slang. It is acceptable to use jargon and technical
terms appropriate to the industry you are in, but avoid overusing them.
Make sure that the writing flows from one section to another,
especially if there was more than one author on the report.

Formal business report example

Here's a sample formal business report that you can review as a guide:

Report on Staff Turnover in GHS Corporation

Submitted Aug. 8, 2019

Introduction
The human resources manager requested this report to examine the
high turnover rate of employees at GHS Corporation. The information
in this report was gathered by members of the human resources
department over three months. The five-member team analyzed
administration records and working conditions, as well as interviewed
staff. In this report, recommendations are made to minimize the high
turnover rate among the staff working at GHS Corporation.

Background

GHS Corporation has been operating for 10 years. It employs 200

people, with most of the employees tasked with processing fees for
insurance clients. Despite operating in a region with substantial
unemployment, the annual turnover has been between 60 to 65%
every year.

Findings

The most significant issue found by the HR team when interviewing

staff was the lack of support to new mothers who require child care
services to be able to come to work. Employees mentioned their
frustration at not having an in-house child care system that could help
them continue working.

Another issue mentioned by the staff was the lack of communication

between employees and upper management. They expressed their
concerns about receiving inconsistent and late instructions. They
shared how they didn't know the main business objectives which led
them to lose interest in the company and their jobs.

Conclusions

The main issues that we found were as follows:

1. Lack of support to new mothers in regards to childcare

2. Lack of communication between the staff and upper management

Recommendations
To address these two main issues, we recommend the following steps
be taken:

1. An in-house childcare center can be established at minimal cost to

GHS, encouraging mothers to return to work.

2. Each department should choose an employee ambassador to

represent the interests of staff in management meetings. This
ambassador can express concerns and relay outcomes to their teams
to increase engagement.