Just Why Are Annual Reports So Darn Expensive to Write?!
An annual report is a report of progress and achievements which are aggregated by an organization over the period of one year. Accurate data is the basis for the preparation of annual reports, and necessary for ongoing reporting and auditing. The annual report summarizes the financial statements and achievements of a company annually, where they are typically due by May 1st for tax purposes. All companies that want to stay on top of their progress and finances, especially for investors, private, or government funding, must conduct annual reports to evaluate the development and the achievement that the company obtains as a whole. Somehow, these reports can be incredibly expensive when purchasing or hiring a writer to create one and will appear to be a complete waste of money. So… Why are annual reports so ridiculously pricey compared to a business plan, or any other equally important document? In this article, we would like to talk all about why even the smallest annual report can cost anywhere between $6,000 to $15,000 on average.
The Importance of Annual Report
What type of information is covered in an annual report? Typically, all tangible activities conducted in a company. The high level of detail, technical, and financial information incorporated into a well-written document will result in
its high cost. Basically, the functions recorded in the annual report are efforts to:
• Enhance creative marketing media through the integrity of writing and design
• Increase the attractiveness of companies in the eyes of consumers via branding
• Review of data which presents the company’s profit and loss balance, spending, and revenue
• Explain job descriptions and functions of each employee’s role
• Activities for building customers’ confidence
• Management activities in hiring and retaining employees
• External activities, such as informing and influencing the media
• Attracting and retaining investors
• Information on company achievements within the year
• And anything else to note!
The point of an annual report is to conduct an evaluation related to the progress of a company so that anyone reading a company overview will know the strengths and the weaknesses of a company over a recent time period, making all business activities genuine. It can also influence customers and investors’ trust. Hopefully, using this annual report, every worker can also be reviewed for their performance. This allows some improvements to help boost productivity and reduce some mistakes to maintain a direction of success.
The Preparation of Annual Report
How to prepare annual reports of a company? An annual Report is considered as a form of written documentation about the company in a broad context and can cover many areas within the company. In to addition, the Annual Report can be used as a marketing and promotional medium to increase the attractiveness of the company in the eyes of shareholders and stakeholders.
Overall, there are a few important aspects in order to prepare annual reports of any company including:
The process of preparing a good Annual Report (AR) is strongly influenced by the team within the Company that works under the coordination of the Corporate Secretary.
Workshop / Discussion
After the AR drafting team is formed, it is important to discuss the support of related fields and provide awareness to each team about the responsibility for material or data fulfillment.
Check the data needed according to the items requested by the Annual Report Awards criteria as well as bank regulations. A checklist of data requirements is distributed to all departments that are related to the material of the annual report.
Presentation of Content
Writing an annual report is not merely processing compelling sentences, facts and figures. Annual report writing emphasizes factual content and keeps in mind the use of language and style. In some way, you should not write normative words or supply its definition, but also explain its relevance.
Decide the Time Limit
You have to determine the time limit of the annual report arrangement and distribute the information to all units. In this case, everybody will prepare the documents needed before the annual report starts.
In conclusion, you can see that the high level of analysis, financial data, and mathematics all have to be managed and prepared effectively in a meaningful and exemplary way. The annual report is absolutely required for companies, who have to conduct one in order to evaluate the progress of the companies in one year. Of course, although annual reports can be very expensive, the end result is a well prepared and informative summary of company progress.