• Recognize the different types of reports used in business communications
• Understand why it’s important to analyze your audience when planning a report

Business Reports

While there is no single difference between informal and formal reports, we can typically distinguish between the two based on their length and sections. 

informal report

Informal reports tend to be shorter, although the quantity of pages or words is not defined

Think of informal reports as documents under ten pages long. An informal report usually has specific topics grouped in paragraphs, and these topics tend to have simple headings. Note that while informal reports often don’t have required headings, you can take inspiration from the headings required in formal reports.

formal report

A formal report tends to be longer; although, again, the quantity of pages or words is not defined.

It may start at ten pages and in some cases exceed one hundred pages. With a formal report, the topic of the report or the policy of the company it’s being written for determines which sections, labels, content, and purpose should be used as the basis for the report. These reports address complex topics that require a substantial description of the background, research on the topic, and evidence to support any proposed solutions. Both the data gathering and the summary of the topic generate length. To keep this abundance of information organized, the report requires formal headings and tight organization in order to help the reader stay on track.

Functions of Reports

Informal reports and formal reports have two major categories: informational and analytical reports. It’s important to keep in mind that both informal and formal reports can fall into these categories (i.e., you can have an informal informational report or a formal informational report).

informational report

An informational report provides a summary of information and data found on a particular topic.

One such report is the expense report, a set of information that is used to request the allocation of funds. The format is strictly pre-determined and it is often completed at the end of a business trip.

analytical report

In an analytical report, information is researched and collected, then the report provides an analysis that leads to one or more recommendations.

For example, consider a report that helps a company determine where to open a new store. The report might look at three properties with respect to road traffic, cost of the land, and adjoining stores, and then recommend the best site from the alternatives.