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The annual reporting process, like so many other legal obligations, can be stressful. Meeting deadlines, ensuring you include all the necessary information, checking accuracy – annual reporting season can be a pressurised time. Here, we explore how you can take the stress out of your annual reporting process.

Which companies need to publish annual reports?

In the UK, all public companies are legally required to produce annual reports. Other, private companies are only legally obliged to file annual accounts, but may choose to publish annual reporting, because investors and shareholders appreciate and increasingly expect to see detailed financial information about the companies they have an interest in.

What is an annual report?

An annual report provides detailed financial information about a company’s performance over the past 12 months. It often also gives information on the company’s future plans and ambitions.

As we’ve mentioned, any public company has a legal requirement to publish an annual report. In addition, all UK companies registered with Companies House – even those which are dormant or not trading – must file annual accounts (a less detailed account of their financial position).

The annual report, though, is a far more detailed document – which means it’s also an opportunity for your business to inject a little of its personality.

Yes, of course, there are certain conventions you need to follow when creating an annual report (and we’ll cover those off below). But it should also be a reflection of your organisation’s ethos, whether that’s via the tone of voice or the design. While some elements of the report are mandated, you should consider how you can make it stand out and, as far as possible, let it mirror your corporate identity.

Why can the annual reporting process be stressful?

There’s no shortage of reasons why the annual reporting process comes with a certain level of stress.

There are strict deadlines. The information needs to be 100% accurate, so there’s double and even triple checking involved. It needs to be comprehensive – it’s vital to ensure you’ve included everything you need. Finally, once you’ve gathered all the information, you need to create the finished article in a way that reflects the professionalism and personality of your business.

Planning and preparation are key. Improving your annual reporting process relies on getting your team together in good time; understanding what needs to be included (as annual reporting requirements change regularly); assembling the information you need; and deciding what your annual report will look like.

Bringing in experts can help at all stages, and reduce the stress you face in annual reporting. Achieving best practice (which we explore below) can be daunting, but at all stages, there is external help available.

What does best practice annual reporting look like?

• Deadlines

A company registered on the UK’s Main Market has to publish its annual financial report within four months of its year-end date. If companies aren’t well prepared, they can feel under pressure to achieve this deadline.

• Information included

Reports have to be both comprehensive and accurate, which can also add pressure. Audited financial statements need to be prepared in accordance with the relevant accounting standard (International Financial Reporting Standards (IFRS) or an equivalent standard).

• Clarity

The information included in annual reporting can be complex – but this doesn’t mean it should be hard to understand. Glance at the National Audit Office’s Good Practice in Annual Reporting document and the word ‘clear’ stands out at every stage.

Often, it can take more work to explain difficult concepts simply than to leave them in jargon-heavy language. But taking this extra step pays huge dividends in making your reporting clear and accessible.

• Design

It can be easy to forget decisions about the design of your annual report, when you’re caught up in information-gathering and keeping track of deadlines. But making choices early on will save you time later and inform some of your other decisions.

Will your report be digital – online or digital document, perhaps hosted via an annual report data room – or printed? Does its design need to follow corporate brand rules? Decide what form your report will take and things like word count fall into place, saving time-consuming revisions as your publishing date approaches.

Secrets to success in stress-free annual reporting

How do you achieve this best practice? There are some easy steps you can take to reduce the stress and help your reporting season run smoothly.

• Plan your content

Content may need to come from a variety of sources. Work out who these are early on, and make sure everyone involved is aware of the information they need to provide, and the deadlines. This may include external parties as well as internal teams.

• Check, check and check again

Accuracy is key; you don’t want to be embarrassed or – worse – risk regulatory penalties because your annual reporting is incorrect. If you work with external experts on the production of your report, you’ll have an extra pair of eyes to check over your content.

• Focus on design

We mentioned the National Audit Office’s Good Practice in Annual Reporting document and its focus on clarity. The way you word your report is obviously key here – but a large part of this clarity comes through design.

Don’t underestimate the difference expert support can make. Whether it’s professional typesetting or full annual report design, an external partner with expertise in annual report design will minimise your stress and deliver a significantly better end result.

• Publication

How are you going to publish your annual report? Digitally or in print? Whichever you choose, deadlines are again key; you need to ensure your report is produced in accordance with the dates you need to meet. And as we noted above, preparation and early decision-making can help to smooth and simplify the writing and design processes.

Here again, working with experts can help you with your logistics, whether they are virtual or physical: getting your digital or hard copy reports where they need to be, when they need to be there.

For more tips on annual reporting best practice, and to make sure you don’t miss anything in your reporting process, you might find our annual reporting checklist a helpful read.

Work with the experts

Perivan is the UK’s number one annual report provider. We are the most trusted producer of shareholder and regulatory reports, supporting around 300 listed clients, including FTSE 100, 250, and AIM companies.

With 30+ years of experience in creative financial communications, we have deep expertise in ESEF and ESMA regulatory compliance, and provide our reporting clients with end-to-end support, including strategy, design, typesetting, compliance, print & digital production.

To find out more, read about our annual report support and design services, or get in touch – we’d love to tell you more!