Module 12 Study Guide Flashcards
A business letter has five main areas:
The heading, which establishes the sender, often including address and date
The introduction, which establishes the purpose
The body, which articulates the message
The conclusion, which restates the main point and may include a call to action
The signature line, which sometimes includes the contact information
Formatting a business letter:
Use single spacing.
Use a simple format with a font that is easy to read.
Leave a blank line between each paragraph. This makes it easier to follow the changes of topics within the letter.
The heading includes:
Return Address: This is your address where someone could send a reply. If your letter includes a letterhead with this information, either in the header (across the top of the page) or the footer (along the bottom of the page), you do not need to include it before the date.
Date: The date should be placed at the top, right or left justified, five lines from the top of the page or letterhead logo.
Reference (Re:): Like a subject line in an e-mail, this is where you indicate what the letter is in reference to, the subject or purpose of the document.
Delivery: (Optional) Sometimes you want to indicate on the letter itself how it was delivered. This can make it clear to a third party that the letter was delivered via a specific method, such as certified mail (a legal requirement for some types of documents).
Recipient Note: (Optional) This is where you can indicate if the letter is personal or confidential.
The Introduction
This paragraph should introduce why you are writing the letter and sum up the key points in the following paragraphs. Include a statement that shows you are knowledgeable of the audience to which your letter is directed.
The Body:
Provide background or history regarding the purpose of the letter.
Talk about key points you are making.
Include a justification of the importance of the main points.
List any important dates, discussions, and conversations that are relevant.
Ask questions, if necessary.
Conclusion
Summarize the main points of the letter.
Restate the problem and resolution if pertinent.
Include deadlines.
Provide contact information (email, phone number, fax, etc.).
Closing salutation.
Signature Block
Always close a letter. “Sincerely” would be the safest way to close out a business letter. On a typed business letter, following the closing, you should leave a space to sign your name with a pen. This will allow for a more personal touch on an otherwise bland letter. This is the only handwriting on the paper so make sure the signature is clear. Below this personal signature should be your typed first and last name to allow for easy reading. After this you can include anything else that the reader may need to know. This could include anything from job title, identification, a notation that there are copies attached at the bottom of the document, or other contact information, such as e-mail address or business phone number.
Tips on Writing Business Letters
Address the reader formally (Mr., Miss, or Mrs.) unless otherwise directed.
Address the letter to a specific person whenever possible, and not the company so it does not get discarded. In accounting types of business letters, including the titles of the person the letter is addressed to, as well as the title of the accountant, too, is generally important in formal types of business letters.
Use a colon after the salutation if using the reader’s last name and a comma if using their first name.
Use company letterhead to make the document more professional, if the document is related to company affairs.
Use a subject line to inform the reader quickly of the documents content.
Sign your name in ink neatly at the bottom, between the closing and the electronic signature of the document.
If a letter does not fill an entire page, be sure the content of the letter is in the middle of the page and the document is balanced.
Include a list the people on the letter that you are sending copies to so a certain individual is not left out.
It is okay to use specific pronouns, such as “I” and “You,” but be careful when using “We.” This is simply because it can commit your company to what you have written.
Presentations
As a business professional, you will likely find yourself in a position where you are required to present information to peers or stakeholders. Informative presentations focus on helping the audience to understand a topic, issue, or technique more clearly.
Visuals
Pie charts are useful, for example, to break up portions of the income statement, the balance sheet, or the statement of cash flow into easier to understand pieces
Bar graphs are useful for showing the relationship of one financial statement item to another—for example, each expense in relationship to the revenues
Line graphs can be used to show financial accounting results and trends over time. For example, a 5- or 10-year graph can show the overall trend in sales (revenues) and/or expenses
Top skills lacking in today’s accounting and finance professionals—survey of CFOs:
General business knowledge
Information technology
Communication skills
Five core communication skills according to the ACA:
Writing Oral presentations Reading and critiquing written work Listening Understanding personal dynamics
Recommendations for good writing from the SEC:
Use active voice
Use positive statements
Use short sentences
Formats for Communicating Accounting Information
Business reports are used as a way of communicating to other businesses and investors the successes and future plans of the company.
Accounting information is sometimes communicated to internal users in the form of a memo. Short for “memorandum,” a memo is typically a brief document used to communicate with others in the same organization.
Business letters are used when the writer would like to be formal and professional. The main difference between a business letter and other letters is that a business letter is a legal document.
Informative presentations focus on helping the audience to understand a topic, issue, or technique more clearly.
Graphics are visual descriptions of information that can be used to ensure information is easily understood by the reader or audience. Examples of graphics commonly used to communicate financial accounting information include bar graphs, line or trend graphs, and pie charts.
Audience
The audience for written documents, presentations, and verbal communication should be considered when drafting, planning, and delivering the message or information. Depending on the purpose and audience, the goal is to provide the optimal amount of detail, not too much but not too little. Communication should be tailored for the intended audience to ensure understanding of the information. Unintended audiences may be anyone that comes across your document at any point in time. In a professional setting, it is important to be mindful of the unintended audience of any written work.
