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How to Write an Annual Report

Annual reports are significant in any kind of business. This is because it is necessary to provide the information stated in annual reports to the shareholders.

Thus, it is important to know how to write an annual report.

Definitely, most companies either private or public are making annual reports. It makes sense so that all the concerned people in the company will know and be updated of what is happening in the company. Usually, public companies are posting the annual reports in the reception area where employees and clients will see the reports. Nevertheless, it is important to know the right manner of writing annual report. Usually, the annual report is divided into different sections.

Different Sections of Annual Report

  • Financial Summary

    • The financial summary is the first section that is included in the annual report. In this section you should include the expenses, total revenue, earning per share and net income. Keep in mind to provide the detailed information in the financial statement. Make sure to include not only the present year but also the previous years. It is also important to summarize the increase and decrease of income every year.

  • Letter to the Shareholders

    • The next section in the annual report is the letter addressed to the shareholders. Usually, the letter is from the CEO or the president of the company and it is printed on the front page of the annual report.

  • Company Operations

    • This section of the annual report cites the articles regarding the company along with colorful pictures. This makes the annual report more interesting. Likewise, you should include the information on acquisition, business conditions, restructuring of organization, marketing plans, research and development as well as market research data.

  • Financial Statement

    • The financial statement section includes the expenses, revenue, earnings per share and net income. The information is displayed in details so that it will be easy to understand. It is the most significant information that should be included in the annual report. It can be placed either in the middle or at the back of the annual report.

  • Biography of the Company Officers

    • The last section of the annual report is the biography of all the officers. Aside form the salient information you should also post picture. As much as possible the information would show how these people help in the financial condition of the company.

After creating the annual report make sure to double check all the information. This is to ensure the accuracy of the details before distributing it. You should also let lawyers and accountants to check the annual report. In this way, you will be sure that it complies with the regulations. Moreover, make sure that the annual report has visual appeal, good readable text, credible and user-friendly. Likewise, after distributing and posting the annual report there should be feedback.

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