The 5 Fundamental Types of Business Documents

marketingAll companies use different types of documents. It is actually impossible to run a business without any documentation. They are usually prepared and written by employees, though sometimes some specific types of documents require a profession from outside the stuff. So in this business documents guide we present to you the five main types of business documents:

  1. The most common one is Memorandum or just simply Memo. It can differ in shape and content significantly as there is no single structure and it can be used to convey various information. Usually it is handed-in between co-workers to communicate on business or work matters. With recent technological advancement memorandums are usually sent by e-mail, though when a case requires more privacy and security it can be done on paper in written form as it was common before. As a rule memos contain several paragraphs which are to inform a reader about the subject matter and of course identify the sender.
  2. Letters. Business letter is very similar to memoranda in form and purpose but there are significant differences. The main one which differentiates it from a memorandum is that it is used not for intraoffice communication but to contact with individuals from outside the office. Generally it involves customers, providers, applicants, freelance employees, officials and partners. Letters are drafted in block type with the left margin, except for the heading.
  3. Another important type is Report. Reports are written in a more formal way than memoranda or letters and contain larger amounts of information. This one deals with various things such as data, plans, figures. Reports tend to include different charts, images, statistics, poll results depending on the conveyed issue. It is not a rare case for to investors require financial reports to check the productivity. Some reports are done occasionally while other are periodic. Periodic reports use single unified structure for convenience.
  4. Transactional documents. As it is clear from the name, transactional documents are used for transacting business with partners or customers. As a rule TD are written in a very plain and straightforward manner to avoid any possible misunderstandings, but the structure may vary depending on the matter, for example if it is a transmission or an order. When a transactional document requires more professional attitude the company may ask their lawyer to draft it.
  5. The last type is Financial documents. This sort of documentation is held by accountants. The purpose is to count all the expenses and income to stay within the budged. It also deals with taxes, bills, payrolls, bank statements and income statements. Financial reports are issued by company owners to determine the financial productivity and identify weak spots in the business. They are also used to draft budget proposals by managers.

This business documents guide could have been way longer as there are still many different types and sorts of papers which didn’t make their way to the list above. But those listed there are the most common and used ones. Every employee working for a company will definitely deal with them often if not every day.

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