A business report is primarily used to communicate information. A letter can convey information, too, but it usually summarizes information. While a letter is addressed to specific recipients, a report might be sent to individuals outside of the company or published. Reports are frequently formatted in a manner that is consistent from one reporting period to another so that information can be compared. If there is a turnover in employees completing reports, the uniformity of a report template makes it easier for the company to maintain consistency in its reporting practices, as well.
Length
One factor in deciding whether to use a business report or a business letter is the length of the information you need to communicate. A business letter is generally between one and three pages long. If you are conveying information that is longer than this, it will be easier to read if it is formatted as a report with an overview, headings and a conclusion. Lengthy reports should contain a table of contents to aid the reader.
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Audience
Another factor to consider is your audience. If the information you have gathered will be reviewed by only a few people, incorporate it into a letter containing your personal comments. However, if you are compiling information that will be read by many people or referred to in the future by individuals outside of your company, use a business report. Financial data, for example, might be reviewed by your company's shareholders, accountants, lawyers and government agencies.
Type of Information
Data compiled into tables, lists, spreadsheets or forms fit better into a business report than a letter. Similarly, if you are including graphs or diagrams, use a report. A major research project, such as a feasibility study, should be put into a report since it provides the format to outline significant amounts of research data, statistics, methods and results. A letter, on the other hand, is useful to communicate a brief summary of the research. Other types of information that are usually communicated in a report include strategic plans, sales reports, compliance reports and marketing plans.
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Formality
Use a business report, rather than a letter, is your writing is formal. While you might use "I" or "you" freely in a letter, a report is less personal. A report is written in an objective tone, reporting facts rather than conveying opinions. If you wish to include an opinion with the report, write this in a letter accompanying the report. If the materials you are presenting require citations to outside sources, a report is the appropriate format for doing this, as well. Depending on the style preferred by your company, place citations within the text of the report, in footnotes or at the end of the report.
