NARRATOR 1: There are many types of business reports available in the world. You've got annual reports, progress reports, sales reports, management reports, finance reports, labor reports, customer reports. You get the idea. 

Most reports can be categorized within one of two types-- the informational or the analytical report. How do you decide which type of report yours is? 

Well, before starting your report, ask yourself whether you are trying to help your readers make an informed decision or merely convey information. The purpose of an informational report is to present facts in an organized way without analysis or recommendations. For informational reports, you have to ensure your information is specific, complete, and relevant. 

For example, when you receive your transcript at the end of your three years in [INAUDIBLE], it is a detailed record of all the grades and academic achievements you received from your first year to your last. It doesn't offer any recommendations but it provides the university or employing organization some evidence on your academic capabilities. 

Annual reports are another example of informational reports. All public corporations must provide this report to all their shareholders to give an account of their financial and operational conditions at the end of each year. In 2011, Warren Buffett, one of the wealthiest men in the world, invested almost $11 billion in IBM. He had read the annual report every year for 50 years. But in 2011, he finally decided he would invest in them. 

Other business reports that are informational include status reports, activity reports, progress reports, situational reports, and conference reports. The purpose of an analytical report is to evaluate, interpret, and analyze the data, and then make sound recommendations for the business. 

Analytical reports objectively analyze the data for patterns and trends. These are used to create recommendations that will help the reader to meet his goals and objectives. Examples of an analytical report include market research reports, visibility reports, troubleshooting reports, and justification reports. 

Now, some people tend to mix analytical reports and proposals, as they mistake the recommendations in an analytical report as part of a proposal. Here are the differences. A report is commissioned by someone, meaning the reader wants to read the report. It will help your reader to make decisions based on factual information. 

The report should be written in a neutral, factual, and unbiased way. The report avoids judgmental, emotional, or subjective words that may influence the reader. Recommendations are led by what the data or evidence says and not what the writer wants. 

A proposal, on the other hand, may not have been commissioned by the reader. The proposal comprises of ideas that the writer would like the reader to consider. It is mainly written to persuade and influence the reader. The writer uses evidence to convince the reader to believe in the writer's ideas. 

Sometimes reports and proposals go hand in hand. For example, a marketing report is done to understand the market situation before a marketing proposal is written. To find out more about how to write a persuasive business proposal, head over to the bonus section of this course. 

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