An annual business report is a document that businesses must file for the business analysts, investors, and shareholders. The report is a point of reference for the performance and financial status of the business. Even the small businesses need to prepare the annual reports that will communicate with their customers about their performances and future targets. If you are a business and want to file your yearly report, here is a simple guide on how to do it.
The Components of the Annual Report
This report gives an annual overview of how the business has performed over the year and its current financial status. It is a legal requirement that businesses must meet, failure to which attracts penalties. If you are an LLC, an S and C corporation, or a nonprofit, you are required by the state to file an Illinois annual business report. However, there are exemptions for filing the report. For instance, you don’t have to file it if your state does not make it mandatory or your business does not require it. The report must contain:
- A letter from the chairman, mostly the CEO of the company.
- A business profile containing the company’s name, its vision, mission, details of investors, shareholders, products, and services. In short, it should include everything involving the business and its operations.
- Business financial statements allow stakeholders, investors, and employees to evaluate the organization’s performance and its financial status. You must include the balance sheet, income, and cash flow statements in the financial statement.
- Management analysis that discusses the performance of the business within the past three years on its income, profits, and sales. The analysis should also include a statement if it has added a new service or product to its line.
How to Write a Yearly Business Report
An annual report provides credibility and transparency to the business. Therefore, writing it in an understandable and precise manner is vital to ensure many people can understand it. The report communicates the values and goals of the business while helping it connect with potential investors and shareholders. So, when writing the report, focus on the following.
- Structure and Content
You may have trouble deciding the vital things to include in the report. Therefore, take some time to plan the content and structure. After writing the basics, make sure the report narratively defines your business. Be clear and precise and maintain professionalism.
- The Main Message
The report highlights your accomplishments and how they have helped your business. So, ensure you know how to connect them with your goals to build trust.
- Convincing Design
Ensure your report is engaging and compelling to use as a cost-effective tool for marketing. So, use a good design to make it easy for readers to get the details they need.
The secret to creating a good annual business report is planning to ensure you have everything you need to complete the report. Irrespective of whether you are a private or public company, the report is a vital document that provides investors, shareholders, and employees with the financial details of your organization and accomplishments over the year.