The company research reports are formulated by the effective employees, in order to provide information to the stakeholders including shareholders, government, creditors and customers. These research reports may from financial to market aspects. Financial reports include the preparation of trading account, profit and loss account statement and balance sheet. However, the market research is all about identifying the tastes and preferences of the target customers. The target behind conducting market research is to design the products as per the specifications for reaping huge gains. The preparation and maintenance of company research reports is necessary as it offers the below mentioned advantages:
Performance measurement
By preparing the accurate reports, you will be able to assess the true performance of your business. In addition, inter- business comparisons with your competitors can be made efficiently. You will have a clear idea regarding your earnings in the past year, which will further help you in setting standards for improving your performance ahead.
Credit worthiness
The sound performance of a business adds to its creditworthiness. In case, you need to borrow funds from financial institutions, the strong reputation and goodwill is certainly going to help you. Every creditor wants secured repayments within specified period of time, which will happen only in the presence of reliable financial reports of the business.
Negative side of company research reports
Preparation of business research reports is a tedious task which requires skilled managers and their precious time. If you are looking forward to hire a professional, you need to incur huge costs on their training and recruitment. If you are willing to know customers’ interests before producing a product, it involves hefty expenses as well
Manipulation
As the control of formulating balance sheets lies in the hands of the manager, he has got the authority to manipulate figures as per his own convenience. If you are looking for perfect results, you need to rely on a trust worthy person who can deliver you the same. In order to minimize the possibilities of biased results, authentic services need to be delivered by the hired employee.
Mere focus on quantitative aspects
Business is not all about figures, numbers and estimates. In addition to the measurement of financial performance, qualitative aspects should also be ascertained. They include the performance of the employees, number of hours devoted by them to fulfill the set objectives and the extent of knowledge they possess.
The preparation of company research report can prove to be advantageous for the business and the investors, if done carefully. Every business has to keep record of its operational activities, which can be successful in the light of research reports. Further, stress should be laid on accumulating relevant data for achieving organizational objectives.
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