An annual report is a compilation of financial information that provides important details about a company’s financial position and operational activities from the previous year. This report provides shareholders with information about the industry in which the company operates, audited income statements, cash flow, and notes relative to income statements.
The six components of an annual report are:
Filing an annual report is crucial to keep a company in good standing and to keep it as a registered entity. Failing to file on time or to file at all can result in late fees or eventually dissolution of the company. It is vital to know the state's rules in order to properly follow the correct protocol for filing an annual report.
While annual reports are essential for shareholders and internal operations of a business, many companies share also share their annual reports online. This allows them to reach many stakeholders at once while sharing the document with all interested parties in their network.