Information on Writing an Annual Report
The purpose of an annual report is to show your current and prospective investors how you are using the money they have put in your company, according to Michigan State University. Publicly traded companies are required by the United States Securities and Exchange Commission to submit an annual report each year. When writing an annual report, there are several key sections you should include to ensure you communicate the right information for investors.
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Introduction
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According to the United States Securities and Exchange Commission, include an opening letter from your Chief Executive Officer or President. Include background information about your company, industry and clients you serve. State the names of all of your board members as well as your executive team. Describe your financial goals for the previous year and whether or not you attained those goals.
Financial Data
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When writing an annual report, you also need to include financial data about your company for the previous year. Include your balance sheet and income statements and highlight any numbers that may be important to your shareholders, including revenue, profits and dividend payments. Don't just include the financial numbers and statement -- explain what they mean and why certain figures are relevant to your business. Use charts and graphs to make it easier for your reader to understand. Explain how you accomplished your company's financial objectives you set at the beginning of the year, and also why you were able to accomplish those objectives. Conversely, explain why you were not able to meet certain objectives if necessary.
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Company Operations
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Describe your business and how you manage it on a day-to-day basis. Outline the major accomplishments from each of your major departments, such as project management, finance/accounting, HR, sales, marketing and production. Include any process improvements you made on the operational side of your business that resulted in a positive return on investment. Communicate accomplishments such as key employee additions and promotions, technology improvements, positive returns on investment for your marketing materials and customer satisfaction feedback.
Summary and Future Strategies
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Summarize your annual report by reiterating your objectives and explaining why you did or did not reach them. Then, outline your goals and business strategy for the following year. Include any sales and financial forecast statements you have. Again, include charts and graphs to make your annual report more visually appealing.
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References
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