Business and Technology · Communicating in business

Business Documents: Reports, Memos and Emails for ACCA BT

Updated 11 October 2026 · Fact-checked

Business documents are written messages with a set purpose, structure and style. A report gives formal, structured findings and recommendations. A memo is a short internal note. An email is quick and flexible. To answer exam questions, match the document to the audience, purpose and level of formality.

Understand Business Documents: Reports, Memos and Emails

Every business document has three things: a purpose (why you write), an audience (who reads it) and a style (how formal it is). If you get these three right, you can choose the correct document and defend your choice in the exam.

A report is a formal, structured document. It presents findings on a topic, often after an investigation, and usually ends with conclusions and recommendations. Reports can go to internal or external readers. They are used when the subject is complex and the reader needs evidence to make a decision.

A memo (memorandum) is a short, internal document. It is used to inform, instruct or request something within one organisation. It is brief, covers one main subject and uses a simple layout. It is not normally sent outside the organisation.

A letter is the traditional formal way to write to people outside the organisation, such as customers, suppliers or regulators. An email is fast and cheap and works both inside and outside the organisation. Its tone can range from informal to formal, depending on the reader. Emails are not private, can be forwarded, and can be used as a record, so write them with care.

Good business writing is clear, concise, accurate, complete and courteous. It uses the reader's language level, avoids jargon where the reader may not know it, and has a clear action or message.

Key formulas to remember

Typical formal report structure: Title → Terms of reference → Procedure → Findings → Conclusions → Recommendations → Appendices; Some layouts add an executive summary near the start for long reports. Learn the order and the purpose of each part.
Memo heading: To | From | Date | Subject; Then a short body. No formal salutation or sign-off is needed, as it is internal.
Terms of reference: Who asked for the report, what it covers, and by when; Sets the scope and stops the report drifting off topic.
Five qualities of good writing: Clear, concise, accurate, complete, courteous; Use these as a checklist when a question asks you to judge or improve a document.
Choosing a document: Formal + complex + evidence needed = report; short + internal = memo; external + formal = letter; fast + flexible = email; This is a rule of thumb, not a fixed law. Always link your choice to the scenario.

How to solve Business Documents: Reports, Memos and Emails questions

Use this method for any question on choosing, structuring or judging a business document.

1Read the scenario and note who the audience is: inside or outside the organisation, senior or junior, expert or non-expert.
2Identify the purpose: inform, instruct, request, persuade, record or recommend.
3Judge the complexity and formality needed. Complex, formal and evidence-based points to a report. Short and internal points to a memo.
4Match the document to these factors. Consider speed, cost, record-keeping and confidentiality too.
5Check the structure the question asks about, such as report sections or memo headings, and use the correct order.
6Check the style: tone, language level, length and layout that suit the reader.
7Eliminate options that contradict the scenario, such as a memo to an outside customer.
8Choose the answer that fits purpose, audience and formality together.

Quickest way: Audience, purpose, formality in 20 seconds

When to use it: Use it for multiple choice questions in Section A where you must pick the right document or the right feature.

Ask: inside or outside the organisation? Outside usually rules out a memo.
Ask: short message or full investigation? A full investigation points to a report.
Ask: does the writer need a written record and speed? Email often fits.
Scan the options for the one that matches all three. Drop any that clash with the scenario.
For structure questions, recall the report order: terms of reference, procedure, findings, conclusions, recommendations.

Common mistakes in Business Documents: Reports, Memos and Emails

Saying a memo can be sent to external customers.
Students think any short note is a memo.
Fix: Remember a memo is an internal document. Use a letter or email for outsiders.
Putting recommendations before findings in a report.
Students jump to the answer first.
Fix: Follow the order: findings, then conclusions, then recommendations. Recommendations must rest on evidence.
Mixing up terms of reference and procedure.
Both appear near the start and sound similar.
Fix: Terms of reference say what the report covers and who asked. Procedure says how the information was gathered.
Treating email as always informal.
Daily personal use makes emails feel casual.
Fix: Match the tone to the reader. Emails to clients or senior staff should be polite, accurate and professional, as they can be forwarded and kept as records.
Choosing a document without linking it to the scenario.
Students recall definitions but skip the audience and purpose.
Fix: Always state why the document fits: who reads it, what it must achieve and how formal it must be.

Worked examples

Example 1

A finance manager must tell all department heads within the company that the expenses claim deadline is moving to the 25th of each month. Which document is most suitable: a formal report, a memo or a letter to each head?

Show the solution

Audience: department heads, all inside the organisation.
Purpose: inform and instruct about a simple change.
Complexity: low. One short message, no investigation or evidence needed.
A report is too formal and long for this. A letter is normally for external parties.
A memo is short, internal and suited to a single instruction.

Answer: A memo. It is short, internal and fits a simple instruction to staff. (An email could also carry it in practice, but of the three options given the memo fits best.)

Example 2

Place these parts of a formal report in the correct order: recommendations, terms of reference, findings, conclusions, procedure.

Show the solution

A report begins by setting scope: terms of reference.
Next it explains how information was collected: procedure.
Then it presents the facts found: findings.
Then it draws meaning from the facts: conclusions.
It ends with suggested actions: recommendations.

Answer: Terms of reference, procedure, findings, conclusions, recommendations.

Exam tips

Always tie your choice of document to audience, purpose and formality. One-word answers lose marks in multi-task questions.
Memorise the report order. Ordering and matching questions are easy marks if you know it.
Remember memos are internal and letters are normally external. This single fact solves many questions.
In multiple response questions, select exactly the number asked. Do not add an extra option that is only partly true.
Under time pressure, eliminate options that mismatch the audience first, then choose between those left.

Practice questions from Communicating in business

Business Documents: Reports, Memos and Emails: frequently asked questions

What is the difference between a memo and a report?

A memo is a short internal note on one subject, used to inform or instruct. A report is a longer, formal, structured document with findings, conclusions and recommendations. Reports can go to internal or external readers.

What is the format of a formal report for BT?

A common order is title, terms of reference, procedure, findings, conclusions, recommendations and appendices. Some reports add an executive summary at the start. Learn the purpose of each part.

How should I write a professional business email?

Use a clear subject line, a polite greeting, a short body that states the point and any action needed, and a courteous close. Check spelling and accuracy. Remember emails can be forwarded and stored.

When should I use a letter instead of an email?

Letters suit formal communication with outside parties, such as official notices or contracts. Emails are faster and are often used for everyday messages. The scenario in the question will show which is better.