Business communication: choosing between business letters and business reports

In any business communication is crucial to conveying information. There are multiple channels trough which information can be passed on, but the most important ones are the business letter and the business report. It’s very important to know when to use one and when to use the other, because sometimes we need to keep our communication partners in the loop and sometimes they are on a need to know basis. Choosing between letters and reports can be a hard managerial decision, but that is way I’ve decided to give you some pointers in the matter.
A business letter can be used to communicate information, but in a short form - a summary. It usually has a specific recipient and it’s not meant to be seen by others or published. On the other hand, the business report it’s made out of large quantities of information and it can be used inside or outside of a company. Most of the times, it is addressed to a general audience and not to someone in particular. A business report can also be printed and because it has a template-based format, it can maintain the same format every time it is edited.

Still, business letters and reports share some common elements. Both have to be written very clear and to the point so that the reader can understand the subject. Both can have the propose of informing or persuading the receiver and both can be transmitted trough various means: printed, emailed, and so on.

When deciding which of the two you’ll need to use, these factors may be taken into account:

1. The Content - It really depends on how much information you want to pass on and what type of information it is. If you want to include graphics, tables or diagrams, it’s better to go with the business reports. If you want to send a summary of your business reporting to your partners or other branches of your company, a simple letter with a list included might do the trick.

2. The Target - Depending on who your audience is, you can simplify the information and  sent a business letter that will include easy to read phrases.But if you want to communicate specific data to a group of experts in your field, than a report is clearly needed.

3. The Length - Another important factor can be the length of the information you want to send. A business letter can normally extend to 2 or 3 pages. A business report is usually extensive and could contain footnotes and references that add a good number of pages.

Also, you can analyze this subject from another point of view: business reports can become an extension to the business letter. That is way it’s crucial to make a difference between the two communication styles and to be able to adapt the tone and type of writing to each.

One last detail to take into account is the financial state of the company. Smaller companies may not afford to use special designed reporting tools and will stick to free tools available online. This will reflect in the eyes of your business partners as it states the true value or rank of your company, so be very very careful what you want to share and how you will do it.