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I have seen many people using the phrase "It works like a charm"....when they are asked about , how something is working/going on. Is it a correct way to use it in business communication.

For Example:- Q: "Is your application working(software)"? A: "Yes, it works like a charm"?

Kindly throw some light on its usage. Can I use it in email to business clients or in a IM chat?

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    It's informal, but yes, it would appropriate for relatively informal business communication, in my opinion as a speaker of US English.
    – stangdon
    Feb 11, 2016 at 15:51

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Works like a charm is an idiom meaning something that beings good luck or success and seems to have magical powers

Charms are trinkets which people have for good luck. Examples are rabbit's foot and horse shoes.

The expression is informal, but very effective expressively.

A formal business equivalent would be

The new product is very effective
The software is very efficient
The product enables us to do things not possible before

Works like a charm is equivalent to works like a dream. Both are colloquial positive praises for something

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