How to write an annual report (2024)

What to include in your annual report

Whileannual reportsare a hugely flexible format, most reports include many of the following elements.

A letter from the CEO or Board Chair
The letter from leadership is a chance to celebrate the year's accomplishments, and chart a course for the year ahead. It should be inspiring, evocative, and written in plain English. It can be difficult to give feedback to leadership, but as this letter often opens theannual report, it's worth spending time crafting a letter that people will actually excite and capture the attention of the reader.

Navigation help, such as a menu ortable of contents
Anannual reportis a large piece of content and it's rare that anyone will read theentire reportfrom beginning to end. To help people find what they're interested in, add a menu to the top of your report. For your print copy, add atable of contents. Note:we recommend against distributing a PDF-only annual report.

Yourmission statement
Anannual reportis, among with things, an exercise in branding for yournon-profit. Make sure you include yourmission statementandkey messagesearly in yourannual report.

Data showcasing your impact
If you have data, use it. There's nothing more powerful than well-executed data visualisations — including charts, graphs, and maps — in anannual report. If you want to get inspired with great examples of data visualisations,check out our guide here.

Testimonials
Try to includes stories, case studies, and othertestimonialsfrom yourstakeholdersfrom thelast year. This will humanise your report and make it much more compelling to read.

Profiles
Someannual reportsgo a step further and include profiles of team and community members. This is another great way to showcase the people behind yournon-profit.

Donor list
Somenon-profitslike to celebrate their donors with a list in theirannual report. This is perfectly acceptable, though make sure the list doesn't take up too much of the report, as it will likely be skimmed by most readers.

Fundraisinghighlights
Yourstakeholderswant to know that your organisation is resilient and stable. The best way to do this is to present highlights from yourfundraisingefforts from thepast year. This should include infographicsand data visualisations — including easily-understood graphs andpie charts— showing your progress.

Multimedia
Effectiveannual reportsinclude a range of media, including photos, videos, illustrations,infographics, animations, and more. While this is impossible to include in a typical PDF, new digital storytelling platforms make it possible to create immersive multimedia reports that can be read on any device. You can read someinspiring examples ofannual reportsin our guide here.

Acall-to-action
Annual reportsare a great marketing opportunity — but only if you include acall-to-actionor CTA. To be clear, your contact details at the end of a PDF doesnotqualify as a CTA. For your CTA to work, it needs to be immediately actionable, such as a button or a form on your digitalannual report.

Financial statements
Our final item is not negotiable. In most countries, yournonprofitannual reportwill need to include your fullfinancial statementsfrom the last financial year. You'll want to work with your accountant to produce thisfinancial information.

Now that we've covered the basics, let's take a look at the actual process of writing anannual report.

If your organisation is ready to build your ownimmersive annual reportswithout writing a line of code,get started with Shorthand and publish your first story free.

How to write an annual report (2024)

FAQs

How to write an annual report? ›

Your annual report should include four main components: the chairman's letter, a profile of your business, an analysis of your management strategies, and your financial statements. Adding creative elements like graphic design and a narrative can also help your annual report double as a marketing tool.

How to write an annual report format? ›

Generally, these are the 7 must-have pages:
  1. Cover Page.
  2. Table of content.
  3. Note From CEO, Chief Operating Officer, or Director.
  4. Executive Summary.
  5. Financial Overview.
  6. Project Overview.
  7. Projections.

What is the structure of an annual report? ›

Your annual report should include four main components: the chairman's letter, a profile of your business, an analysis of your management strategies, and your financial statements. Adding creative elements like graphic design and a narrative can also help your annual report double as a marketing tool.

What must be included in an annual report? ›

Annual reports typically include financial statements, statements from the CEO and Board Chair, and key activities and accomplishments.

What is a typical annual report? ›

Annual reports are comprehensive documents designed to provide readers with information about a company's performance in the preceding year. The reports contain information, such as performance highlights, a letter from the CEO, financial information, and objectives and goals for future years.

What makes a good annual report? ›

A good annual report communicates more than just financial performance and forecasts. It provides stakeholders with a deeper understanding of what you do, why you do it, and how well you do it — and gives them a reason to trust, invest in, and/or work with your brand.

How to write a summary annual report? ›

An annual report begins with a letter to the shareholders, then a brief description of the business and industry. Following that, the report should include the audited financial statements: balance sheet, income statement, and statement of cash flows.

What are the four 4 parts of a report structure? ›

The following table shows the possible elements of a report in the order they would usually occur. The essential elements (introduction, body, conclusion, and reference list) are shown in red and bold in the table on the next page.

What are the two parts to the annual report? ›

Harvard Business School Online said, “Usually, an annual report is split into two halves.” The first section shares “the company's narrative,” and the second part “presents data” minus the “narrative components.”

What is the single most important component of an annual report? ›

Financial statements

This is perhaps the most important section of the annual report. A company presents three financial statements - income statement or profit and loss account (P&L), balance sheet and cash flow statement. Apart from these, there are also notes to financial statements.

What is required to prepare an annual report? ›

Aside from legally required information, a strong and well-crafted annual report includes a cover page, a table of contents, a letter from the owner or CEO, a summary of your business's mission, vision, values, and goals, a description of your products or services, a detailed and comprehensive financial report, a ...

Who writes annual reports? ›

Many publicly traded corporations have their own in-house personnel prepare their annual reports, or they farm them out to large accounting firms, professional writing firms, and graphic artists to create impressive brochures to accompany the reports. The focus here is on smaller companies, LLCs, and nonprofits.

How to start an annual report sample? ›

Start by collecting important data from the previous year's financial statements, project milestones, and marketing reports. Next, pop into the annual report template and fill out basic information like the company name, logo, and main people involved.

How do you run an annual report? ›

How to create a successful annual report
  1. Summarize your business profile.
  2. Provide detailed company's financial position and statements.
  3. Include an overview of the company's operational performance.
  4. Make annual reports authentic by including challenges.
  5. Add your progress on corporate social responsibility.
Jun 9, 2023

What are the elements of an annual report? ›

An annual report begins with a letter to the shareholders, then a brief description of the business and industry. Following that, the report should include the audited financial statements: balance sheet, income statement, and statement of cash flows.

How do you write a good report format? ›

Following are the parts of a report format that is most common.
  1. Executive summary – highlights of the main report.
  2. Table of Contents – index page.
  3. Introduction – origin, essentials of the main subject.
  4. Body – main report.
  5. Conclusion – inferences, measures taken, projections.
  6. Reference – sources of information.
  7. Appendix.

How to structure a report? ›

Report structures do vary among disciplines, but the most common structures include the following:
  1. Title page. ...
  2. Abstract (or Executive Summary in business reports) ...
  3. Table of contents. ...
  4. Introduction. ...
  5. Methodology. ...
  6. Discussion. ...
  7. Conclusion/recommendations. ...
  8. Appendices.

How do you write a summary for an annual report? ›

Your executive summary should not be a summary of your entire annual report. It should focus on the most important and relevant aspects of your organization's performance and strategy. You should highlight your key achievements, challenges, and goals in a clear and concise way.

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