Reporting & Communication | Meaning | Definition | Differences

What is a Report?

The word “report” is derived from the Latin word “Portare” which means “to carry”. So, “report” is a document which carries the information. Report is carrying the information in a written format for any event which was already happened.

Meaning of an Ideal Report

An Ideal Report means a report prepared under some rules and principles and serves the purposes of all parties interested in the business to the maximum possible extent.

Meaning & Definition of reporting

Reporting is a process of communicating the accounting facts and information relating to the business.

Definition of reporting

According to S.P.Gupta,

“Reporting may be defined as communicating the facts and data through reports and statements to the persons for whom such facts and data are complied and collected”.

Differences between reporting and communication

The differences between reporting and communication are presented below.

1. Reporting is only upward dissemination of information.1. Communication is both downward and upward of transmitting the information.
2. Report is prepared by the Management Accountant.2. The communication is forwarded by a responsible officer or the section supervisor.
3. Report is only a written document.3. Communication may be in oral.
4. The function of reporting starts when accounting information comes to an end.4. Communication is a continuous process.
5. A report is consisting of draft, schedules statements, charts, graphs and any other statistical presentation. 5. Communication is consisting of sentences at the maximum.
6. The timing of reports is linked with their nature.6. There is no time restriction of communication.
7. The reports may be sent weekly, monthly, quarterly or yearly.7. The communication is followed daily.
8. The report brings the results and performance of an order. 8. An order is communicated.
9. The sub-ordinate communicates the results.9. The superior communicates orders to the subordinate.
10. The life of the report is long period.10. The life of the communication is short period.

These are the top 10 differences between reporting and communication.

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