Who Writes the Annual Report?

An annual report summarizes a company’s financial performance and activities over the prior year. Public companies must file these reports, but private companies and nonprofits also use them to inform stakeholders. They help shareholders evaluate the business and make investment decisions. Companies often use in-house teams or hire accounting, writing, and design professionals to prepare thorough yet readable reports. An effective annual report structures financial data and company details clearly without excessive length or jargon. It balances successes and setbacks transparently while spotlighting productive strategies. By providing crucial information accessibly, a strong annual report fosters shareholder trust and informed investment.

Public companies must file annual reports by law. Most public companies hire auditing firms to write their reports. An annual report begins with a letter to the shareholders then describes the business and industry. It includes audited financial statements: balance sheet, income statement, and statement of cash flows. The last part often explains facts and figures in the financial statements.

Many publicly traded corporations have their own personnel prepare their annual reports, or they farm them out to accounting firms, writing firms, and graphic artists.

The focus here is on smaller companies, LLCs, and nonprofits.
Private companies and nonprofits also use annual reports to inform stakeholders. These feature photos, financial reports, and recognize contributors.

A 10-K is a comprehensive report filed annually by public companies about their financial performance. The 10-K includes company history, financial statements, earnings per share and other relevant data. The 10-K is generally more detailed than the annual report but lacks photos and graphics. Publicly traded companies will complete both yearly. The 10-K can be found on the SEC website.