Do you think "oh, no" when the calendar shows annual report time? It doesn't have to be that way.
An annual report is a lot of work, we agree . But if you do it the right way, with a good plan, there's a lot of gold in the annual report. Gold that can also shine on the rest of your website and in social media. But it requires good planning.
Sustainability reporting is a must
Most companies have come to realize that sustainability reporting is a very important part of the annual report. At least if your company has "sustainability" as a core value, an important focus area or an important point in reputation building. And who doesn't today?
All companies that are required to keep accounts and are not small businesses must report on their corporate social responsibility. This also includes the environment, i.e. what we call sustainability reporting or climate accounting. If you make an effort with this part of the annual report, both visually and textually, you get very good content for many channels and for many target groups. It can be used both on the website and in social media to build reputation, but it's also a good idea to have it easily accessible and searchable for customers, investors and partners.
Detailed reporting requires a lot of detailed data. It's not something that can be done overnight, but is actually something that the business must decide to do wholeheartedly. Still, it's worth considering that good, detailed sustainability reporting is a competitive advantage!
Environmental requirements have become stricter and stricter for public companies, and also for some private ones. This means that they have to choose their subcontractors carefully. If you're going to compete for tenders, you need to have your carbon footprint in place.
How to write a good annual report?
- Have a clear concept: This provides a common thread that makes the job easier for everyone - those who write, those who decide on the content and those who design. And it produces a far better result.
- Spend time on your content: With good planning, you can create a lot of good content that can later be shared in other channels too. In other words: smart use of time and resources.
- Know what you want: Do you want to use the report to build your reputation, to demonstrate key values, to signal growth, or for something completely different? The answer here sets the tone for the previous two points, and the next.
- Know who you are writing to: Think about who will be reading your annual report: Employees, investors, partners, potential employees, others? What do they want to know and what do you want them to know?
- Spend time on the numbers: Think about how they can be presented in the best and most understandable way. Here the answer is rarely "table" alone.
- Be digital: The best results come when you don't just put the PDF online, but create it as a web page. Like we have done for the Bergen Business Council.
- Remember ESEF from the start! Does the new ESEF requirements apply to you? Then the entire report must be created in XHTML format, which actually also sets guidelines for the design. This can take extra time, so take this into account when planning.
What is an annual report?
An annual report is a statutory, annual document in which companies of a certain size describe how the year has been. The annual report is subject to a number of requirements. These are regulated by the Accounting Act.
What should an annual report contain?
An annual report must contain two parts: Annual accounts and annual report.
Annual accounts: The annual accounts must provide an overview of the company's financial situation and describe the financial events of the past year. Here you can read about what must be included in the annual accounts in the Accounting Act.
Annual report: In the annual report, the board of directors and general manager describe what the company does, how it is organized, what the past year has been like and the conditions for future operations. Here you can read the law on what must be included in the annual report.
Who must prepare the annual report?
All businesses subject to accounting requirements that are not small enterprises must prepare an annual report. Businesses that are defined as small enterprises must also submit annual accounts, but do not need to prepare an annual report.
Do you need help? Contact one of our consultants if you want a non-binding chat.