An annual report is a summary of all financial operations of a company and includes detailed information about its assets, loans, generated revenue, and market value of the company. An annual report serves as a financial statement that describes how successful the company is, and must be accessible to the public (Kenton, 2019). While small firms regularly create only an internal annual report, most companies would like to use it as an opportunity to advertise their business. First and foremost, annual reports aim to disclose the data on the company’s inner workings to the public.
Annual reports provide an insight into the company’s decisions, events, and generated profit during a fiscal year for its shareholders. It could also be used as a marketing tool to attract new investors to the company. Epstein (2014) states that “Companies will usually include some information about major changes in the previous year or planned changes for the next year” (p. 13). Such information is included to demonstrate the success of the company and advertising (Epstein, 2014). Writers of annual reports, usually the chief financial officer, aim to show the appeal of the company along with a summary of financial data.
Do you think all marketing staff members should be equipped to speak with the public about the firm’s financial matters?
It could be beneficial to include representatives of departments who can highlight the company’s achievements, such as management, marketing, and labor departments. The marketing department can use data from an annual report as a marketing advantage and reach out to bring more investors and shareholders.
What are some of the benefits of improving employee financial literacy?
A company can see an increase in the production and efficiency of its employees by increasing their financial literacy. The more knowledgeable people who present an annual report are, the more successful the presentation will be. Moreover, staff members who know the financial condition of the firm can attract shareholders or even become shareholders themselves.
Epstein, L. (2014). Financial decision making: An introduction to financial reports. Bridgepoint Education.
Kenton, W. (2019). Annual report. Investopedia. Web.