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Sales report essentials: How to write one in 6 steps

What is a sales report?

A sales report, also called a sales analysis report, provides an overview of a company's sales efforts. The specific details of sales reports vary depending on the objective, but they typically include key performance indicators (KPIs), including sales volume, prospects, new customers, revenue‌ and more. 

These reports provide valuable information about the advantages and disadvantages of your sales approach. Additionally, they provide valuable insight into future sales forecasts, performance evaluations and customer motivations.

What are the advantages of sales reports?

Optimising the sales funnel

Sales reporting provides valuable information about what makes certain sales successful. Management can use this data to prioritise sales leads based on these insights. Further, it helps marketing teams target the right audiences and refine campaigns.

Improving team and business performance

Reports on sales provide valuable information about team and company performance. Data feedback can help individuals and teams identify ways to achieve targets quickly and increase sales. Sales data can also help organisations develop more effective business strategies.

Supporting timely decision-making

Tracking sales allows leaders to capitalise on opportunities and stay competitive by identifying customer behaviour trends. In addition, these reports help identify inefficiencies, which can be addressed to streamline operations, reduce costs and increase profits. 

Boosting team morale

The sales report can identify top performers and motivate the team by celebrating successes. Supportive environments can help team members form bonds, increasing collaboration and productivity. In addition, recognising and rewarding employees for reaching higher goals drives employee satisfaction and engagement. 

What are the different types of sales reports?

Daily sales report

This snapshot shows a detailed view of daily sales activities, capturing the ebb and flow of daily transactions. In high-volume businesses like retail or e-commerce, daily sales reports can alert managers to spikes or drops in sales so they can act appropriately.

Weekly sales report

This report provides a zoomed-out view of daily sales activity over a week. It's invaluable for spotting short-term trends, addressing immediate issues and fine-tuning strategies for the upcoming week.

Monthly sales report

The monthly sales report serves as a comprehensive summary of the month's sales activities. It offers in-depth insights into emerging trends, enabling businesses to calibrate their strategies for the subsequent month.

Quarterly sales report

A quarterly sales report is like a business's seasonal check-up. These reports typically cover a longer period, aligning with fiscal quarters. Using this extended reporting, companies can assess their sales dynamics in the broader context of their financial health.

Annual sales report

This report provides a high-level overview of the company's sales performance. Businesses take this time to reflect on the previous year, celebrating their successes, learning from mistakes and setting the stage for what's next.

What are the key elements of a sales report?

A sales report's components can vary depending on the type and objectives of the report. Sales reports generally contain data on sales performance, customer trends and marketing strategies. It may also include information on customer feedback and satisfaction levels.

A comprehensive, easy-to-understand and actionable sales report includes these elements:

  • Executive summary: A brief overview summarising the primary findings and key takeaways from the report.

  • Total sales: The cumulative amount of all sales transactions during the specified period.

  • Sales goals and objectives: The set targets to measure actual sales against.

  • Sales trends: An analysis of sales patterns over the period, highlighting any significant changes or consistent behaviours.

  • Product/service performance: A breakdown highlighting which products or services sold well and which fell behind.

  • Customer insights: Information about who customers are, their purchasing patterns and preferences.

  • Sales by region: A distribution of sales figures based on geography or designated sales areas.

  • Costs and expenses: A concise account of sales expenditures.

  • Recommendations and action items: Based on the data presented, this section offers suggested strategies or changes to improve sales performance.

  • Conclusion: A succinct wrap-up of the report, reiterating the significant findings and any impending strategic moves.

How to write a sales report step-by-step

1. Determine the goal

Understand the primary purpose of the report. Is it a monthly sales report or annual review? Is it for managerial decision-making, sales team evaluation or forecasting? With a clear objective and consideration of readers' specific requirements, you can tailor the report to the intended audience and directly address their concerns. 

2. Gather your data

The backbone of any sales report is accurate and comprehensive data. Use tools like Customer Relationship Management (CRM) systems to pull transactional details, customer interactions, and other pertinent data. 

3. Organise your findings

A structured report is an effective report. Categorising your findings into logical sections like total sales, customer categories, or product performance makes the report intuitive. This makes the text easier to comprehend, especially for readers who are short on time.

4. Explain your data

Raw data can sometimes be misleading or difficult to comprehend, so it's important to include interpretations with your findings. Why was there a sales dip in March? What external factors affected sales performance? By giving context, you provide a narrative that makes the data relatable and actionable.

5. Use visuals

Visual aids, such as charts and graphs, can convey complex data in seconds. A good visual can highlight trends, contrasts or anomalies that might take paragraphs to describe. Use bar graphs for trends over time, pie charts for proportional data, and tables for detailed breakdowns. Always ensure these visuals are clearly labelled and easy to understand.

6. End with suggestions

The primary purpose of sales reporting is to drive action. Be sure to conclude with actionable insights or recommendations. Based on your findings, should the company increase advertising spend? Should there be more focus on training sales representatives? Clear, actionable suggestions turn your report from a retrospective analysis into a roadmap for future strategies.

Use MYOB to create a sales report

MYOB is a business management platform with reports and insights built into every plan. Build out your sales report with data captured in your accounting software. Manage and grow your business with confidence with MYOB.

Compare plans and get started with MYOB today!

Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.

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