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What Is an Annual Report? (With Definition & Top 2024 Business Examples)

If you've started a business, at some point you're going to need to do an annual report. That can be a daunting prospect if this is your first time.

In this guide, I'll walk you through what an annual report is, why you need it, and what you should include. I'll also share some tips and annual report examples to help you create annual reports your customers and investors actually want to read.

What Is an Annual Report? An Annual Report Definition

You may be wondering, what is an annual report and what is its purpose? 

An annual report provides companies' financial and operating information to regulatory authorities, shareholders and investors. 

As our annual report definition suggests, these reports are published once a year. In contrast, companies may be required to file earnings reports at specific times throughout the year. 

For example, the US Securities and Exchanges Commission expects companies to file earnings reports each quarter, and an annual report at the end of the fiscal (or financial) year. Financial year ends usually coincide with the end of a quarter, so typical dates for the end of reporting are March 31, June 30, September 30, or December 31.

Annual reports can be published in different places. As well as completing the regulatory filing, companies may share top findings via earnings calls. They may also publish their annual report on their websites. 

Find the Best Annual Report Templates

If you're looking for the best annual report templates to create your next annual report, Envato Elements has a great offer you won't want to miss. Download as many annual report examples as you want all for one low price. 

To find the perfect annual report template, go to Envato Elements and select Graphic Templates next to the on-screen search box. Type in annual report . You'll see thousands of attractive annual report templates you can use for your next filing. 

Here are three of our top picks to get you started: 

1. Annual Report Brochure

Wondering what is an annual report for a business? This brochure will help you create the perfect annual report. It's got 24 pages, uses free fonts and is easy to edit with the latest versions of InDesign.

2. Corporate Annual Report

What is a corporate annual report without a bit of color to liven things up? The 48-page annual report template lets you customize colors with just a couple of clicks. It includes US Letter and A4 sizes and is easy to edit and customize in InDesign.

3. Annual Report Corporate Brochure

Looking for a minimalist design for your next corporate annual report? This stylish A4 annual report template could be the right choice. It's got a clean design and is easy to edit in InDesign.

Envato Elements is a great choice when you want to change the design of your annual report regularly. But if you're looking for annual report examples for one-off use, check out the annual report templates available on GraphicRiver. 

Why You Need an Annual Report

So, what is the purpose of the comprehensive annual financial report? Why is it so important for companies to have one? As noted earlier, one of the main reasons is that it's a legal and regulatory requirement for many companies. 

An annual report keeps your company in good standing from the legal and financial viewpoint. If you don't file your annual report on time, your company might have to pay fines or extra fees. And in some cases, failing to remain in good standing might mean you're not allowed to keep trading. 

Annual reports are also a great way for companies to introduce their management teams, show off achievements, and talk about plans, 

Types of Annual Reports

There are four main types of annual reports: 

• the corporate annual report
• the small business annual report
• the nonprofit annual report
• the alternative annual report

Let's take a brief look at what each of these involves:

1. Corporate Annual Report

When considering what an annual financial report is, the corporate annual report is what most people think of. This is a report filed by publicly traded companies with their local stock exchange or regulatory body. 

For example, US companies file their annual reports with the Securities and Exchange Commission. UK companies file theirs with Companies House and announce the filing on the stock exchange. If you're planning to file a corporate annual report, check the filing requirements for your country and location. 

2. Small Business Annual Report

Unless you're running a private company, you'll need to file an annual report for your LLC. What is an annual report for an LLC, what's required? In the US, that depends on the state. Small business annual reports are often shorter and simpler than corporate filings. But check the requirements of your country or location to see what you need to include for your business to remain in good standing.

3.  Nonprofit Annual Report

Though nonprofits usually enjoy tax benefits, they still have to file a statement of accounts to stay in good standing. While the financial reporting requirements are usually less onerous than for large public corporations, annual reports give nonprofits a great opportunity to report on their achievements in the past year. 

4. Alternative Annual Report

An alternative annual report won't always meet legal filing requirements, but it can be a great way to tell the story of your company's year your way. A lot of tech and SaaS companies provide alternative annual reports online to highlight interesting facts and figures about their business. 

Key Parts of Annual Reports

Alternative reporting aside, here are some of the key elements to include in annual reports.

First of all, there are financial statements. There are four types of financial reports you've got to include:

• a balance sheet (a statement of assets and liabilities)
• an income statement (covering revenue and expenses)
• a cash flow statement (covering cash management from different activities)
• an equity statement (covering the value of and changes to company shares) 

You'll also need to include any explanatory notes that relate to these statements, or to regulatory compliance. And if regulations mandate the filing of audited financial statements, you'll also have to include an auditor's report.  

Other key parts of the annual report include:

• Corporate, business or non-profit info - details about the name, address and contact information of your business entity. You'll also include names and titles of key executives or directors.
• Non-financial content related to the operations and achievements of the company. For example, this is where you might report on how you're achieving your mission
• Reports by the chair, CEO or business owner to put the finances and achievements into context

How to Create an Annual Report

Ready to create your first annual report? Here's how you get started.

Remember what an annual report is and what its purpose is. So, start by making sure you've got all the right financial information available in the required format to meet your local filing regulations. 

Next, work out what story those numbers tell, and what you want people who read the annual report to take away. Collect accomplishments you want to include such as specific achievements or milestones and initiatives where your company has made a difference. Check your previous annual report to see what was planned or promised that you can report on this year. 

Once you know the story you're telling, start the process by creating a CEO's or chair's letter that'll go at the front of the annual report. Include key messages and highlights from the year to guide readers on what to look out for. Think of it as a kind of executive summary for your annual report.

Then prepare the rest of your report. You can give more detail on activities and initiatives. Collect some photographs to use as illustrations throughout the annual report. These days, annual reports don't have to be dry; they can be interesting, and, in the case of alternative annual reports, even interactive.

Once you've got all the elements together, it's time to think about the design. Consider:

• Deciding on fonts for headers, subheads and body text. Don't use too many fonts, as that can be visually confusing. Instead, try different font weights for headings and subheadings.
• Lay out your text, dividing it into small paragraphs for easy readability.
• Include photographs that relate to your text to make the pages more attractive.

Remember, if you want a head start on designing your annual report you can take advantage of the annual report templates from Envato Elements. These will save you time while helping you achieve a professional look for your annual report. 

3 Cool Annual Report Examples

Want to get some ideas for your next annual report? Here are three annual report examples to inspire you.

1. Gates Foundation Year in Review

This online annual report includes the CEO's letter at the top, and financials and business information near the end. In between, there are four key areas of work that you can click on for more detail, insights and statistics.

2.  Girls Who Code Annual Report 

As you'd expect from a more tech-minded report, the Girls Who Code annual report has some nice features. For example, text appears as you scroll to it while reading the CEO's letter. Numbers on charts and stats increase as you watch, but there are also links so you can jump to the section that interests you most.

3. CPA Ontario Annual Report 

CPA Ontario has a more traditional but still attractive annual report. It keeps font use to a minimum, has consistent design, and includes short letters from the chair and the CEO. You can see how their annual reports have evolved over the years. This is a good example for a small business or corporate to follow. 

Learn More About Annual Reports

To find out more about writing and designing annual reports, check out the articles below:

Get Started on Your Next Annual Report!

In this guide, we've looked at what an annual report is, what it includes and how to create one. Remember, annual reports don't have to be dull and dry. They can have an exciting and attractive design.

Get a head start on creating an annual report with the well-designed annual report templates from Envato Elements. Download as many templates as you want for one low price. You can also find attractive annual report templates for one-off use on GraphicRiver. Check them out, and start creating your annual report today!

Understanding Annual Report: Definition, Components, and Importance

An annual report is a comprehensive document prepared by a company at the end of its fiscal year to provide shareholders and other interested parties with a detailed overview of its financial performance and operations. This document serves as a key communication tool between the company’s management and its stakeholders.

Table of Contents

Components of an annual report, financial statements.

Financial statements are a critical component of an annual report and include:

• Balance Sheet: Provides a snapshot of the company’s financial position, detailing assets, liabilities, and shareholders’ equity.
• Income Statement: Shows the company’s revenues, expenses, and profits or losses over the reporting period.
• Cash Flow Statement: Tracks the cash inflows and outflows from operating, investing, and financing activities.

Management Discussion and Analysis (MD&A)

MD&A offers insights into:

• Performance: Explanation of the company’s financial results and factors influencing performance.
• Strategy: Discussion of business strategies, challenges, and future plans.
• Risk Factors: Identification and assessment of risks impacting the company’s operations and financial health.

Corporate Governance and Ownership Structure

Corporate governance section covers:

• Board of Directors: Composition, responsibilities, and governance practices.
• Executive Compensation: Details of salaries, bonuses, and other forms of compensation for top executives.
• Ownership Structure: Information on major shareholders and their voting rights.

Auditor’s Report

The auditor’s report provides an independent assessment of the accuracy and fairness of the financial statements presented in the annual report.

Importance of Annual Reports

Transparency and accountability.

Annual reports promote:

• Transparency: Providing stakeholders with a clear view of the company’s financial health and performance.
• Accountability: Holding management accountable for their decisions and stewardship of shareholder funds.

Decision-Making Tool

Investors and stakeholders use annual reports to:

• Assess Performance: Evaluate the company’s financial strength and profitability trends.
• Compare Competitors: Compare financial metrics with industry peers to gauge relative performance.
• Make Informed Decisions: Guide investment decisions based on the company’s financial outlook and strategic direction.

Regulatory Compliance

Annual reports fulfill regulatory requirements:

• Legal Obligation: Companies are mandated by law to prepare and disclose annual reports to ensure transparency and compliance with accounting standards.
• Investor Confidence: Regular reporting fosters investor confidence by providing reliable information for decision-making.

Example of an Annual Report

For example, XYZ Corporation’s annual report for the fiscal year ended December 31, 2023, includes:

• Financial Highlights: Summary of key financial metrics and performance indicators.
• Management Discussion: Analysis of business performance, market trends, and strategic initiatives.
• Financial Statements: Detailed balance sheet, income statement, and cash flow statement.
• Corporate Governance: Overview of board structure, executive compensation, and governance practices.
• Auditor’s Opinion: Independent auditor’s assessment of the financial statements’ accuracy.

In conclusion, annual reports play a crucial role in corporate communication and transparency, providing stakeholders with a comprehensive view of a company’s financial performance, governance practices, and strategic direction. By analyzing annual reports, investors can make informed decisions, monitor investments, and hold management accountable. Understanding the components and significance of annual reports is essential for anyone involved in finance and investing.

For further information on annual reports and their role in corporate governance, refer to industry standards, financial publications, and regulatory guidelines. Accessing annual reports directly from company websites or financial databases provides firsthand insights into corporate disclosures and performance metrics.

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What is an Annual Report?

What does an annual report contain, who uses annual reports, related readings, annual report.

A comprehensive report detailing a company’s activities throughout the preceding year

An annual report is a comprehensive report detailing a company’s activities throughout the preceding year. Its purpose is to provide users, such as shareholders or potential investors, with information about the company’s operations and financial performance.

• 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.
• There are many users of annual reports, including shareholders and potential investors, employees, and customers.

Annual reports provide a significant amount of information for its readers who will be able to get a good overview of the company’s overall performance in the preceding year. It is important to note that many annual reports are not traditional reports with large amounts of text; many companies often incorporate a lot of graphics and images, resulting in a visually appealing document.

The structure of annual reports undoubtedly will vary according to each company, but most annual reports will generally contain the following:

• A letter from the president or CEO
• Performance highlights from the preceding year
• Financial statements
• Performance and outlook for future years

We will briefly go through each item in detail below:

1. Letter from the CEO

The letter from the CEO is addressed to shareholders and provides a summary of the company’s performance in the previous year. CEOs typically spend a lot of time on their letters to highlight the company’s achievements, as its performance is relative to the industry it operates in. The letter would likely mention the information of interest to shareholders since they are the primary readers of the report.

2. Performance Highlights

Annual reports usually dedicate a section to highlighting some of the company’s key achievements, such as special initiatives, goals reached, or awards received by the company or its employees. The main goal of the section is to ensure that shareholders are satisfied with their investment in the company and persuade potential investors to do the same.

3. Financial Statements

Financial statements are a key component of the annual report and provide its users with quantitative data regarding specific aspects of its financial performance in the previous fiscal year.

Annual reports typically include financial statements, such as balance sheets, income statements, and cash flow statements . In addition, there will often be graphs or charts included, helping break down the financials into easily readable information.

4. Outlook for Future Years

Annual reports typically include information regarding its future performance in order to provide shareholders with information on the company’s future goals and objectives. Investors are able to get a thorough understanding of the company’s current position in its respective industry and the company’s plans for future growth. The reports also include information regarding a company’s strategy and how it plans to implement that strategy in the coming years.

While hardcopy annual reports are still common, electronic versions are increasingly popular and can be found on the websites of many companies. Electronic versions allow the reports to be made accessible to a larger audience in PDF or other formats.

Increasingly common are interactive online reports, which allow users to virtually flip through the report and expand graphics, among other things.

Annual reports are often publicly available and cater to a large external audience, including shareholders, potential investors, employees, and customers.  The general community can also be an audience, as some companies or non-profit organizations will likely go through another company’s annual report to better understand the latter’s values to see if a partnership or other collaborative efforts are feasible.

While they are primarily used to convey financial and performance-related information, the annual report is also used as an advertising tool to highlight some of the company’s key initiatives or goals that were recently achieved.

1. Shareholders and Potential Investors

Shareholders and potential investors use annual reports to get a better understanding of the current position of the company in order to make investing decisions. The annual report helps potential investors decide whether or not to purchase stock. It also gives insight into the future plans of the company, along with its goals and objectives.

2. Employees

Employees often use the annual report to understand some of a company’s different focus areas. Many employees are also shareholders of a company due, in part, to stock option benefits and other schemes, which provide employees with incentives in being shareholders.

3. Customers

Customers of a company use annual reports to get an overview of different companies and help them decide on which one to build a relationship with. Customers are interested in working with high-quality suppliers of products or services, and an annual report enables companies to emphasize its core values and objectives.

They also make good use of the financial information contained in the annual report, which gives them a good idea of the financial position of the company.

Thank you for reading CFI’s guide to Annual Report. To keep learning and developing your knowledge base, please explore the additional relevant resources below:

• Annual General Meeting (AGM)
• Audited Financial Statements
• Earnings Guidance
• Types of SEC Filings
• See all accounting resources
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What is an annual report definitions, requirements and examples.

You want to impress shareholders, attract more investors, highlight your brand, engage your employees, or just file a report with the Securities and Exchange Commission (SEC). You need an annual report - but exactly what is an annual report? 

But today, businesses and organizations create many different types of annual reports. Each type of annual report out there is designed with a very specific end goal in mind. 

If that’s what you want to learn about - you’re in the right place. 

To help you understand the world of annual reports, this post looks at everything you need to know about them - what they are, the different types, what goes into them, who reads them and how to create them. The post is broken down into the following sections. If you’d like to learn about something specific, click on a link to jump ahead. 

• What is an annual report?
• What is included in an annual report?
• Who reads an annual report?
• What is the easiest way to create an annual report?
• How do you summarize an annual report?
• How do you create an attractive annual report?

If you want to check out our annual report templates to get a sense of what they look like and get design ideas, just visit our annual report templates page. 

see all annual report templates

1. What is an annual report?

A traditional annual report is an in-depth, comprehensive overview of a business’s achievements and financial statements from the preceding year. It is produced on a yearly basis, and provided to shareholders, investors, stakeholders and others to inform them of the organization’s overall performance, financial status, and vision for the future.

Today, annual reports are often used as marketing tools for organizations to impress shareholders, investors, or donors; attract new ones; and to showcase their brand to employees, clients and others.  

This example of an annual report design makes use of friendly, illustrated icons and bright colors to liven up very dry content. Not only is it more engaging to read, the organization’s branding jumps right off the page.

get this annual report template

Companies like Mailchimp regularly publish creative annual year-in-review reports , always outdoing their previous designs.

These types of annual reports are well-designed, fun, and engaging. They share information in a way that’s exciting and easy to understand, and serve as great branding assets. These types of annual reports can also be referred to as ‘year-in-review’ reports, highlighting major milestones for that year. This isn’t just something businesses do, either. Nonprofit organizations consistently promote their cause and the impact of their organizations. Annual reports, year-in-review reports, or impact reports that highlight the past year’s achievements are all staple nonprofit marketing  tactics to gain donors and supporters. 

Just take a look at this pages out of  Novozymes  annual report. 

This is an annual report you can actually enjoy reading . The visuals are fun, engaging, informative and reflect the uniqueness of the Novozyme brand. The simple and attractive design is super helpful, since it helps us understand pretty complex information. 

2. What is included in an annual report?  

A typical annual report for a public company must have the following sections: 

• A letter from the CEO
• Corporate financial data
• Operations and impact
• Market segment information
• Plans for new products
• Subsidiary activities
• Research and development activities 

These are the barebones expectations for an annual report. Of course, depending on the size of your organization or type of organization, your annual report can range anywhere from 20 pages to 200. 

Keep in mind, actual human beings read your annual report. It doesn’t just get filed away in a dusty government basement, never to be seen again. Making it easy to read and review is essential in helping people understand your annual report’s findings and how your business is performing. 

So on top of those individual sections, it helps to include things like: 

• A cover page
• A table of contents
• Mission and vision statement
• Charts, graphs and tables
• CSR initiatives
• An afterword
• A glossary 

These are two examples of reader-friendly annual report designs.   

Year end annual report template

This year end annual report template uses a color palette that pops, quality stock photos, and organized tables to  visualize financial data and performance metrics. It includes a brief introduction and a table of contents. 

Get this year end report template

Simple nonprofit annual report template

This nonprofit annual report reduces the use of text, and relies more on visuals, icons and charts to communicate data and figures. 

Get this nonprofit annual report template

Ultimately, you decide how much information to include in your annual report, on top of what’s required. The best way to decide what to include, and how you present your annual report, is to consider the audience you’re creating an annual report for. 

3. Who reads an annual report?

An annual report’s primary audience is your shareholders. These people have a legal right to know how your company is performing, how it is changing, what it has planned for the future and other facets of its operations. 

But shareholders aren’t the only people with an interest in your company’s performance, its products, its projects, and plans for the future. More often, businesses use annual reports to present the organization’s brand as a whole. Your business’s vision for the future, its values and ideals, its social initiatives, its ambitions are all things that shareholders, as well as investors, employees, customers, donors (if you’re a nonprofit) business journalists and many others will take an interest in. 

Annual reports for your staff

Annual reports are great ways for employees to learn more about your business and the brand. They can go through an annual report to see what other projects and initiatives the company has invested in. This is helpful for large businesses with hundreds or thousands of employees.

According to the most recent HR trends , employees care more than ever about employer branding and values. Take a look at the information highlighted in the sharply designed  Roche Annual Report .

Among other things, this annual report highlights the value placed on the hard work of employees, teams and entire departments that have helped a business succeed. 

In many instances, employees are shareholders within the company and they’re just as interested in how the company is performing. It’s another way to reinforce the value of their work, by showing how their team or department has helped the company to grow. 

In the case of nonprofit organizations, annual reports help staff understand the impact of their hard work in the community. 

Annual reports for your customers

Findings from Accenture Strategy’s global survey found that customers care deeply about the values and behaviors of major brands . Millennials and Gen-Zers in particular care most about brands driven by a purpose other than profit. According to the survey, nearly 40% of respondents stated they would stop purchasing from brands that appear socially irresponsible or ethically questionable. 

You can see in this  L’Oreal Annual Report , there are sections dedicated to their ethics and values. 

Annual reports allow for a brand to present itself in the best light possible. Businesses can demonstrate the values that set them apart from competitors. They can talk about the types of suppliers and manufacturers they work with, how materials are sourced, the quality of their products, the well-being of their employees, their impact on the environment and more. 

Nonprofit annual reports for donors

Nonprofit annual reports are testaments to all the money received and hard work that nonprofit organizations have done throughout the year. I’d argue they’re absolutely essential to a nonprofit. 

Nonprofit annual reports demonstrate how the support from donors has helped to change people’s lives. After all, donors aren’t purchasing products the way customers do, what they’re “purchasing” is a social good that they want others to receive. 

Annual reports highlight exactly how people’s lives are being transformed for the better. Check out the 2018 annual report from Girls Who Code . 

Not only do they share the tremendous impact of the organization which donors want to know about - they do it in a visually creative, engaging way.

A nonprofit annual report highlights your organization’s successes, it provides some feel-good fulfillment to your staff who can look back at the fruits of their hard work, and donors know their money is being put to great use. 

A nonprofit annual report also helps you make an appeal for more donations, bigger donations, grow your paid staff, and win over more volunteers for the coming year.

4. How do you summarize an annual report?

There are two simple ways to summarize an annual report. You can create an annual report infographic, or an annual report presentation. Both are great ways to share dense data and information in a way that’s manageable for your audience. 

Annual report infographics 

Let’s start with the annual report infographic. The advantage here is that you let the data tell the story. Rather than provide pages of analysis, visualize your data through charts, graphs, and icons. Take a look at this simple shareholder report infographic: 

GET THIS ANNUAL REPORT INFOGRAPHIC TEMPLATE

The infographic focuses on a single data point. There may be layers of information that explain how that figure was determined, but this summary is practical and direct. For a more detailed report, create a long-form infographic report, by adding multiple sections that highlight individual data points. 

You can use a layout like this annual report infographic: 

get this infographic nonprofit report template

The use of text is minimal. The numbers and data tell the readers everything about the impact of the organization and how it has performed. This is an effective way to share relevant and valuable performance insights with shareholders, investors, or donors. 

see all infographic templates

Annual report presentations

An alternate approach to summarizing an annual report is to create annual report presentation slides . You can share the slide deck on its own, or help it guide your presentation on key findings in your company’s complete annual report. 

This simple annual report presentation deck dives right into the content. It’s a great example of how to break up data and make information easily digestible. 

GET THIS ANNUAL REPORT PRESENTATION

Note how the large headings tell the audience exactly what each slide is focused on. Key findings are also highlighted on each slide, to complement the data the charts/graphs show. 

If you expect a lengthier presentation slide, include an agenda or overview of your annual report presentation. This lets people know what you’ll be covering and how far along in your presentation you are. 

The key to presenting is letting your audience know where they are in your presentation. Are you only halfway through or three quarters of the way done? Even with a summary, preparing your audience helps to keep them engaged, rather than distracted. 

Our templates library has an attractive range of annual report presentation templates. Interested in designing your own? Check out our annual report presentation templates page.

SEE ALL BUSINESS PRESENTATION TEMPLATES

5. What is the easiest way to create an annual report?

As you’ve seen from the actual annual report examples I shared, and our annual report templates, annual reports are packed with a ton of content - text, visuals, charts, financial figures and more. 

Hiring a design agency to design your annual report is one option. The cost for a professionally-designed annual report ranges anywhere from $5,000 to $12,000, and then depending on the types of visuals you need, even more. 

Keep in mind, you’ll still need to pull all the content and data together yourself. 

To save your organization time and money, without compromising on design, a professional annual report template is the way to go . You can visit Venngage’s annual report templates page today, browse hundreds of unique designs for a number of industries, and use preset layouts and design styles to format your content. 

Customizing the templates is straightforward and doesn’t require any design experience. The Venngage editor is a drag-and-drop tool that’s simple to use. With it you can do a number of things like: 

• Apply your branding through Venngage’s My Brand Kit , which includes your organization logo, brand colors and brand fonts
• Use chart and graph widgets to visualize financial data, trends, statistics and more
• Add beautiful icons that really elevate your annual report design
• Apply high-quality stock photos directly from Pixabay and Unsplash (or upload your own professional images). 

6. How do you create an attractive annual report?

Why does the design of an annual report matter? Those who are interested in the information will take the time to read it, won’t they? 

Sure, but they might not understand everything you’ve tried to communicate. Keep in mind, you’re sharing tons of data and ideas. If it’s boring and dry, investors might just take a nap instead. 

I also mentioned that annual reports are a way to present your brand, and that employees and customers alike would be potential readers. How you present your organization influences their opinion of you, your values, what you’re all about and all the data you’ve packed in. 

Captivating, engaging design provides your many different readers with an enjoyable experience, and helps them walk away with your annual report’s key takeaways. So below, I'll share a handful of annual report design best practices for you to keep in mind. 

• Create a high-impact annual report cover page with large images

The cover of your annual report should grab, and hold, the attention of your readers. This can be hard to achieve without the help of a professional designer.

The workaround?

Use large, high quality images as the focal point of your cover page for a bold, eye-catching effect.

In this annual report example, bright blocks of color are combined with a full-page image to create a simple, yet striking design.

GET THIS TEMPLATE

Cover images should not be used purely for decoration. They should tell your customers, stakeholders, and employees something about the culture or values of your organization.

Use cover photos to set the tone for the report and to convey the company spirit that you’d like to project to your readers.

Does your company focus on positive customer experiences?

On company culture?

On high quality, professional products?

Take a look at how each of the companies below uses cover images to project their own, unique narrative focus. Nestle is focused on customer experiences, GE is focused on their employees, and Thermo Fischer Scientific is all about the product:

Source high quality images for a professional touch.

Using low quality or pixelated images can make the report look amateur and reflect poorly on your company or organization.

If you’re going to go with a full-page cover image, it’s worth investing in a professional photographer to take photos of real employees or customers, like L’Oreal has done for their annual report:

Otherwise, try to source high-resolution images from respected sites like Unsplash or Pixabay . You can access Unsplash and Pixabay's complete stock photo library in Venngage's editor as well. 

• Choose the right charts for your annual report metrics

Annual reports are all about the numbers, meaning that a key ingredient of creating an effective annual report is choosing the right chart for each metric .

There are a few types metrics found in most annual reports, including:

• Financial highlights (revenue, earnings per share, growth, profit margin)
• Month by month financial trends
• Sales breakdown by market and by product
• Year over year financial performance

The type of data you are visualizing should determine what type of chart you use. Let’s review the best visualization types for each type of metric.

Use “big number” charts to summarize financial highlights.

The financial highlights section of an annual report should summarize the most important facts and figures of the year simply and concisely.

The easiest way to show this assortment of different metrics in a small space is to simply write out those numbers in big, bold text. We call this type of visualization a “big number” chart.

In a big number chart, the size of each number should vary based on its importance, as shown in Concho Resources’ 2017 annual report :

As you can see in the example below, big number charts communicate key metrics quickly, clearly, and with impact.

CREATE THIS REPORT TEMPLATE

Use line charts to display monthly trends.

Line charts are the standard display for tracking changes over time, which is essential in an annual report. Investors and shareholders will want to see month by month trends for all sorts of financial metrics, including sales, profits, margins, and share earnings.

Line charts are perfect for comparing and contrasting sales trends across competitors, as seen in this annual report example:

As seen in Adidas’ 2016 annual report, line charts are particularly useful for tracking the growth of share prices over time (compared to market indices):

Use stacked bar or donut charts to show market composition.

Another core component of the finances section of an annual report is market segmentation, which shows the breakdown of annual sales into different categories.

You might break down your sales by geographic region, by product category, by customer profile...whatever helps your business identify opportunities for growth and improvement.

Traditionally, sales breakdowns are visualized with pie or donut charts, a standard method for showing part-to-whole relationships.

Pie charts, while intuitive to read, are notoriously poor data visualization tools. Most people struggle to distinguish between the size of similar pie segments at a glance.

A better choice would be a stacked bar chart, seen in the market segmentation report below.

Use grouped bar charts to compare year-over-year financial performance.

Year over year financial performance is of interest to many potential readers.

Investors, employees, and customers will all want to see how an organization’s current performance compares to that of previous years. It’s arguably the most important metric to be included in an annual report.

The most efficient method for visualizing year-over-year performance is with grouped bar charts, like these ones in GE’s 2017 annual report. The side-by-side bars emphasize the changes from one year to the next.

As seen above, it’s a good idea to use a highlight color to draw extra attention to the year of interest (2017, in this case).

• Use bold color accents to highlight key facts, quotes, and figures

Color should never be used simply for decoration in an annual report.

Although aesthetics should be a consideration, color should primarily be used to enhance communication--to clarify the information on the page.

As I just mentioned for the bar charts above, color can be used to highlight key information. It can be used to draw the reader’s attention to particularly important facts, figures, or data points in information-dense displays of text and data.

Check out how the yellow color is used to create visual contrast in this annual report example:

The contrast between the green background and the yellow highlight color draws attention to the most valuable bits of information: the data! The contrast creates points of visual focus, helping us make sense of the information on the page.

When creating your annual report, try to pick one highlight color and apply it to every key data point that you want your readers to pay attention to. The brighter, the better!

To learn more about using contrasting color schemes, check out this guide on how to use colors in infographics .

• Create a clear type hierarchy to make your annual report skimmable

Annual reports are typically quite information-heavy, with a great deal of technical information on each page.

To prevent your readers from getting lost (or worse: bored), it’s important to create a clear hierarchy of information on each page. This hierarchy will help your reader navigate through the report, allowing them to easily skim through to the most pertinent information.

You can create hierarchy by altering the size, weight, and placement of various elements. Headings should be larger than subheadings, key figures should be bolder than general body text, chart captions should be small and light, etc.

Check out how text hierarchy enhances the readability of the corporate performance annual report below. The titles and key numbers are styled in bold, black, large text, making them stand out from the rest of the page, while less pertinent text, like labels and captions, are smaller and more subtle:

When creating this visual hierarchy, it’s important to be mindful of the principles of typography. You don’t want the typography to distract from the content of the annual report.

Here are a few principles to keep in mind:

• Use a maximum of three different fonts to ensure the text is interesting but not chaotic.
• Use a stylized font for the header text and a minimal font for the body text.
• Use different font weights and styles to create contrast and draw the eye.

Want to learn more about typography for annual reports and infographics? Check out this guide on how to choose fonts .

• Create your annual report on a grid for a balanced page layout

I strongly suggest using a grid to format your annual report design.

Building off of an underlying grid framework will ensure consistency from page to page, while allowing you to experiment with different compositions (to keep your report interesting).

Using a grid can also help you create negative space, which is critical to great design. It gives the viewer time to process what they are seeing before moving on to the next section. Negative space is the core design component of most crisp, modern designs, like the one below:

• Focus on what’s important with a condensed one-pager annual report

Short, one page annual reports (also known as one-pagers) are gaining popularity as an alternative to extensive multi-page annual reports. These reports cover only the most important metrics, making it possible to grasp an organization’s performance at a glance.

One of the keys to a successful one page annual report is a simple color scheme. Pair neutral greys with a single bright highlight color for a sleek, cohesive look.

I hope this guide has answered the question, “what is an annual report”. To wrap up, here are all of the design best practices you should keep in mind when creating your next annual report.

Now you know everything there is to know about annual reports! If you still have burning question, comment and let us know. We'll share our expertise.

You can also check out more resources on report design examples, templates and tips below.

More report design guides:

55+ customizable annual report templates, examples & tips.

7 Business Report Templates You Need to Make Data-Backed Decisions

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Resources for Your Growing Business

How to write an annual report: 4 tips for getting started.

Connecting with shareholders, investors , and the public is key to growing your small business. Your annual report communicates the strength of your business, so your current shareholders can feel confident knowing how your business operates. It’s also a chance to build new relationships with investors and clients by showcasing your management, financial performance, company mission, and goals. 

Learning to write strong annual reports is important for delivering required year-end documents, but it can also help you forge personal connections. Explore the essential components of the annual report, as well as strategies for adding a creative touch that sets your business apart.

Key Takeaways

• An annual report communicates your business affairs to stakeholders and the public
• It typically includes mission goals, financial position, structure, and strategies
• Depending on the size of your business, you may be legally required to provide an annual report
• A good annual report can also be used as a marketing tool
• Aim to create an annual report that’s clear, honest, and engaging

What this article covers:

What Is an Annual Report?

What to include in an annual report, how do you write a good annual report, why is an annual report important.

• Frequently Asked Questions

To write an annual report, the business operations and the financial position are listed, summarized, and recorded. The annual report is a financial document businesses provide to shareholders, potential investors, and analysts. It is the best source of information about the business performance and financial well-being of a business.

Publicly traded companies are required to file annual reports to the Securities and Exchange Commission. However, small businesses and non-profit organizations also prepare yearly reports to connect with customers and provide information about yearly operations, past performance, and future goals.

The annual report is an integral part of corporate reporting. Since the annual reports are based on specific legal requirements , the items included in the report vary.

Most annual reports provide a fundamental overview of the business over the past year. The sections typically included in an annual report are an opening letter from the chairman, a business profile, an analysis by management, and financial data.

Chairman’s Letter

Annual reports usually start with an introduction and a letter from the company’s chairman, primary owner, or CEO to the shareholders providing a snapshot of the significant developments in the past financial year, company initiatives, and a brief summary of the financials. Key elements included in this section are the challenges that the business faced, its successes, and insight into the growth of the company.

A table of contents follows the section.

Business Profile

This section includes the vision and mission statement of the company, details of directors, officers, and registered and corporate office, investor profile, the products or services that are the main source of revenue for the business, competitor profile, and risk factors of the business.

Management Discussion and Analysis

The section provides an overview of the business performance over the past three years and discusses profit margins, sales, and income

If the business has launched a new product or service or there are drastic shifts in sales and marketing efforts, this section should include them. The other topics of discussion include new hires, business acquisitions, and other information that the management thinks would benefit the stakeholders.

Financial Statements

The financial statements are the most important part of the annual report that allows current and future investors, shareholders, employees, and other business stakeholders to determine how well the company has performed in the past, its ability to pay off its debts, its cash flow, and its plans for growth. The statements that are included are:

• Balance sheet
• Cash flow statement
• Income statement
• Statement to shareholders

These statements show whether the company has made a profit or loss in the past year, how much earnings it has retained, and the proportion of revenues to operational expenses the previous year. Apart from the financial statements, information about the market price of shares of the company and the dividends paid have to be provided.

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Other elements included in the year-end report are:

• Notes to accounts with details about the accounting policies
• Comments by auditors on the financials of the company.
• Disclaimers about forecasted income and expenses
• Stories, infographics, and photographs

Annual reports are important elements of a brand’s transparency and accountability. However, rather than writing a ponderous document that only a few can understand, businesses are creating annual reports that speak to a broad group of people.

These reports communicate the values and goals of the company’s mission and brand. Producing a highly visual and narrative-driven interactive annual report can help businesses connect with shareholders, investors, and customers. Aim to include visual elements throughout the entire report to keep the document engaging.

Determine the Key Message

Annual reports are a perfect opportunity to highlight your accomplishments and the impact of these accomplishments. The investors and employees want to know what you did and why you did it. By connecting your business activities and your accomplishments to the final goals and mission statement, businesses can build trust and foster long-lasting connections.

Finalize Structure and Content

One of the most difficult parts of writing an annual report is deciding what to include and leave out. It’s important to map out the report’s content and structure.

Apart from the basic elements such as the introduction, chairman’s letter, business profile, and financial statement, the annual report should have a storyline that defines the report’s overall structure and shapes the content around a narrative thread. This makes identifying and cutting out information that does not actively move the story forward easier.

Use clear, precise, and unambiguous writing. Maintain a professional and unbiased position throughout the document. The content of the annual report should be transparent and honest. Don’t inflate accomplishments or disguise the losses that you faced.

Make writing your annual report easier by keeping clear and detailed records as you go. FreshBooks’ accounting templates help you organize your expenses, income, and receipts so you’ve got everything ready for the end of the year. Click here to start your free trial and learn how FreshBooks can help make accounting easy.

Use Compelling Design

A well-designed, engaging, professional report can be used as a marketing tool by a business. Ideally, readers should be able to scan through the document and get the relevant information they need. Here are some pointers for a good annual report design:

• Use headings and subheadings
• Devote space to photographs, infographics, and other compelling visual elements
• Keep the text short and simple
• Use a bold and complimentary color scheme and layout techniques that are in sync with your brand
• Emphasize key areas with colored text boxes, quotes, and captions

Plan in Advance

Creating an annual report is a long-term process that requires an organized system for recording and tracking data, media clipping, photographs, and a list of business achievements. While a number of companies create the annual reports in-house, others may hire a design firm to compile, proofread and finalize the document.

Ready to create a clear and compelling digital annual report? FreshBooks’ reports feature lets you explore report templates, performance tools, and accounting details so you can write your reports in-house. Try it free to begin your annual report today.

Both public and private companies use annual reports to provide important business and financial information to customers, investors, employees, and the media. Here are some reasons why writing annual reports is necessary for businesses:

• Provides an opportunity to highlight a company’s key achievements, expectations for the coming year, and overall goals and objectives
• Gives information on the company’s financial position
• Introduce you’re the key members of the business to stakeholders and the general public
• Tells shareholders and employees the company’s strategy for growth in the coming year
• Useful as a decision-making tool for managers

The annual reports keep your critical business information up to date. A failure by public companies to update the investors and the state might result in late fees or even the dissolution of your company.

Writing an annual report is essential for communicating your business position to shareholders, investors, and the public. Depending on the size of your company, you may also be legally required to produce annual reports for the Securities and Exchange Commission. 

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. Learning to create a strong annual report is essential for guiding management decisions in your company and connecting to those who support and grow your business.

FAQs on How to Write an Annual Report

How do you write an annual report for a small business.

Writing the annual report for a small business follows a similar process as writing for a large company – you should include a chairman’s letter, business profile, management analysis, and financial statements. However, since you’re writing for a smaller business, you also have more flexibility to be creative. You can tailor your report to shareholders or make it a public-oriented document that you can use to market your small business.

Who Prepares the Annual Report?

Companies may have their own in-house writing and design team, or they may choose to hire an outside firm to prepare their report. Teams usually include accounting, writing, and graphic design professionals. 

Which Things Should be Avoided while Writing a Report?

Avoid leaving your annual report to the last minute, trying to mask challenges your business has faced, or overloading the report with details and jargon. The aim is to be clear in your communication – be upfront about both your successes and losses, and write with accessible language that’s understandable to all your readers.

What are the 5 Basic Structures of a Report?

A good report can be structured in a simple 5-part setup to showcase your company’s performance. These sections are:

1. Introduction

3. Comments and disclaimers

4. Conclusion

5. References 

You’ll start with a brief overview, then provide the body of information. Comments and disclaimers should explain any claims or facts, then summarize your information in the conclusion and cite any external references.

What are the 4 components of an annual report?

There are 4 key components to include when writing an annual report:

    1. Chairman’s letter

    2. Business profile

    3. Management analysis

    4. Financial statements

You can also include creative elements like stories, infographics, and photographs to make your report more visually engaging to your target audience.

Kristen Slavin, CPA

About the author

Kristen Slavin is a CPA with 16 years of experience, specializing in accounting, bookkeeping, and tax services for small businesses. A member of the CPA Association of BC, she also holds a Master’s Degree in Business Administration from Simon Fraser University. In her spare time, Kristen enjoys camping, hiking, and road tripping with her husband and two children. In 2022 Kristen founded K10 Accounting. The firm offers bookkeeping and accounting services for business and personal needs, as well as ERP consulting and audit assistance.

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Annual report

In principles of finance.

An annual report is a comprehensive document produced by a publicly traded company to provide shareholders and other interested parties with detailed information about its financial performance over the past year. It typically includes financial statements, management's discussion and analysis, and key operating metrics.

Find Out More ( 1 )

• Principles of Finance - 2.5 Interacting with Investors, Intermediaries, and Other Market Participants

5 Must Know Facts For Your Next Test

• Annual reports are mandated by regulatory authorities like the SEC in the United States.
• They include essential financial statements such as the income statement, balance sheet, and cash flow statement.
• Management's discussion and analysis (MD&A) section provides insights into the company’s performance and future outlook.
• Auditors' reports included in annual reports offer an opinion on whether the financial statements present a true and fair view.
• Annual reports often contain qualitative information such as corporate governance practices and social responsibility initiatives.

Review Questions

• What key sections are typically found in an annual report?
• Why is the auditor's report important in an annual report?
• How does the MD&A section of an annual report help investors?

Related terms

Financial Statements : Documents that provide an overview of a company's financial condition, including income statement, balance sheet, and cash flow statement.

Corporate Governance : The system of rules, practices, and processes by which a company is directed and controlled.

SEC (Securities and Exchange Commission) : A U.S. federal agency responsible for enforcing laws against market manipulation.

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• Corporate Communication
• Entrepreneurship: How to Successfully start a New Business
• International Consulting for Small and Medium-Sized Enterprises
• Intro to Business
• Investor Relations
• Leading Nonprofit and Social Enterprises
• Principles and Practice of Public Relations
• Writing for Public Relations

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Annual Report

What is an Annual Report?

An annual report is an audited corporate document that details the business activity and financial status of a publicly-held company over the previous year.

How Does an Annual Report Work?

The Securities and Exchange Commission (SEC) requires all public companies to distribute an annual report to shareholders at the end of each fiscal year . Each report contains the three main financial statements -- the Income Statement , Cash Flow Statement and Balance Sheet -- as well as a host of other company-related data.

Why Does an Annual Report Matter?

The annual report provides a variety of important financial data. The SEC requires all publicly traded companies to file reports on an annual and quarterly basis , and the reports provide in-depth information on a company's products, market segments, competitors, customers, management and legal proceedings. Investors can readily access these financial reports for all public companies and mutual funds incorporated in the U.S. on the SEC's web site found here .

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How to Quickly & Effectively Read an Annual Report

• 04 Jun 2020

Intelligent investing requires analyzing a vast amount of information about a company to determine its financial health. Armed with this information, an investor can better understand how much risk might be involved with backing a company based on how well it’s performed historically, in recent quarters, and toward its financial targets.

Exactly where this information comes from depends on the specific company that’s being invested in, but typically requires several financial statements, including a balance sheet, cash flow statement, and income statement.

In addition to these documents, most investors look forward to reviewing a company’s annual report—a collection of financial information and analysis that can prove invaluable in evaluating the health of a company.

If you’re not an investor, but an employee working within a corporation, the annual report can impart valuable information pertinent to your career. Understanding how your company is performing and the impact your actions have had on its business objectives can help you advocate for a promotion or other form of career advancement .

If you’re unfamiliar with what goes into an annual report, there’s some good news: You don’t need to be a financial expert to get value out of the document or understand the messaging in it.

Here’s an overview of the different information you’ll find in an annual report and how you can put it to use.

Access your free e-book today.

What Is an Annual Report?

An annual report is a publication that a public corporation is required by law to publish annually. It describes the company’s operations and financial conditions so that current and potential shareholders can make informed decisions about investing in it.

The annual report is often split into two sections, or halves.

The first section typically includes a narrative of the company’s performance over the previous year, as well as forward-looking statements: Letters to shareholders from the chief executive officer, chief financial officer, and other key figures, as well as graphics, photos, and charts.

The second section strips the narrative out of the picture and presents a variety of financial documents and statements.

Unlike other pieces of financial data—and because they include editorial and storytelling—annual reports are typically professionally designed and used as marketing collateral. Annual reports are sent to shareholders every year before an annual shareholder meeting and election of the board of directors, and often accessible to the public via the company’s website.

Annual Report vs. 10-K Report

Annual reports aren’t the only documents public companies are required to publish yearly. The US Securities and Exchange Commission (SEC) requires public firms also to produce a 10-K report , which informs investors of a business’s financial status before they buy or sell shares.

While there’s similar data in both an annual and 10-K report, the two documents are separate.

10-K reports are organized per SEC guidelines and include full descriptions of a company’s fiscal activity, corporate agreements, risks, opportunities, current operations, executive compensation, and market activity. You can also find detailed discussions of operations for the year, as well as a full analysis of the industry and marketplace.

Because of this, 10-K reports are longer and denser than annual reports, and have strict filing requirements—they must be filed with the SEC between 60 to 90 days after the end of a company’s fiscal year.

If you need to review a 10-K report, you can find it on the SEC website .

What Information Is Contained In An Annual Report?

An annual report typically consists of:

• Letters to shareholders: These documents provide a broad overview of the company’s activities and performance over the course of the year, as well as a reflection on its general business environment. An annual report usually includes a shareholder letter from the CEO or president, and may also contain letters from other key figures, such as the CFO.
• Management’s discussion and analysis (MD&A): This is a detailed analysis of the company’s performance, as conducted by its executives.
• Audited financial statements: These are financial documents that detail the company’s financial performance. Commonly included statements include balance sheets, cash flow statements, income statements, and equity statements.
• A summary of financial data: This refers to any notes or discussions that are pertinent to the financial statements listed above.
• Auditor’s report: This report describes whether the company has complied with generally accepted accounting principles (GAAP) in preparing its financial statements.
• Accounting policies: This is an overview of the policies the company’s leadership team relied upon in preparing the annual report and financial statements.

What to Look for in an Annual Report

While all the information found in an annual report can be useful to potential investors, the financial statements are particularly valuable, as they provide data that isn’t obscured by any sort of narrative or opinion. Three of the most important financial statements you should evaluate are the balance sheet, cash flow statement, and income statement.

The balance sheet shows a company’s assets, liabilities, and owners’ equity accounts as of a specific date, illustrating its financial position and health.

The income statement shows a company’s revenue and expense accounts for a set period, allowing you to gauge its financial performance. Using trial balances from any two points in time, a business can create an income statement that tells the financial story of the activities for that period.

Cash flow statements provide a detailed picture of what happened to a business’s cash during an accounting period. A cash flow statement shows the different areas in which a company used or received cash, and reconciles the beginning and ending cash balances. Cash flows are important for valuing a business and managing liquidity, and essential to understanding where actual cash is being generated and used. The statement of cash flows gives more detail about the sources of cash inflows and the uses of cash outflows.

These three documents can help you understand the financial health and status of a company, and they’re all included in the annual report. When you read the annual report—including the editorial information—you can gain a better understanding of the business as a whole.

An annual report can help you learn more details about what type of company you work for and how it operates, including:

• Whether it’s able to pay debts as they come due
• Its profits and/or losses year over year
• If and how it’s grown over time
• What it requires to maintain or expand its business
• Operational expenses compared to generated revenues

All of these insights can help you excel in your role, be privy to conversations surrounding the future of the company, and develop into an effective leader .

Critical Information for Investors and Employees Alike

Being able to analyze annual reports can help you gain a clearer picture of where a company sits within its industry and the broader economy, illuminating opportunities and threats.

The best part about learning to read and understand financial information is that you don’t need to be a certified accountant to do so. Start by analyzing financial documents over a set period. Then, when the annual and 10-K reports are published, you can review and understand what leadership is saying about the operational and financial health of your company.

If you’re an investor, knowing how to read an annual report can give you more information from which to base your decision on whether to invest in a company. If you’re an employee within an organization, learning how to read and apply the information contained in an annual report is an essential financial accounting skill that can help you understand your company’s goals and capabilities and, ultimately, further your career.

Do you want to take your career to the next level? Explore Financial Accounting and our other online finance and accounting courses , which can teach you the key financial topics you need to understand business performance and potential. Download our free course flowchart to determine which best aligns with your goals.

About the Author

What is an annual report?

Annual report (definition).

An annual report is a detailed report that shows a company’s operations and financial performance in the preceding 12 months. This information is of interest to shareholders and potential investors.

Publicly traded companies have to produce annual reports as part of their responsibilities to stock market regulators and their shareholders. Companies that aren’t publicly traded may still have to produce annual reports for government regulators and tax offices.

What goes in an annual report?

An annual report for a publicly traded company typically contains highlights of the company’s activities and performance during the previous year, future goals and objectives, a letter to shareholders from the CEO or company president, an auditor’s report, and detailed financial statements. Financial information is often visually presented in graphs and tables. The annual report for a small business will be much more simple.

The financial statements – balance sheet, income statement, and cash flow statement – provide information about the company’s:

• current financial state
• profit or loss in its previous fiscal year
• cash availability to pay its debts as they come due
• earnings retained to grow its operations
• operating ratio (OR) ratio of operational expenses to revenue generated

See related terms

Financial statements

Financial reporting

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Please note you do not have access to teaching notes, corporate annual reports: research perspectives used.

Accounting, Auditing & Accountability Journal

ISSN : 0951-3574

Article publication date: 1 October 2002

Corporate annual reports are viewed through the lens of researchers of these documents. The aims are to obtain insight into how researchers view annual reports; to ascertain how the different ways of seeing the annual report relate to each other; and to draw out the gaps in this diverse research in a continuing attempt to understand its role and purpose. Selective examination of a decade of corporate annual report research (1990‐2000) reveals how researchers have sought to find visibility and meaning. Few studies address the document as a whole, in terms of the integration of the messages between the various parts of the report. Explanation of the changing structure and content of annual reports remains divided, largely because of the differing perspectives of researchers. They have revealed diversity in the ways of seeing the annual report and a tension in understanding its overall purpose and role.

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Stanton, P. and Stanton, J. (2002), "Corporate annual reports: research perspectives used", Accounting, Auditing & Accountability Journal , Vol. 15 No. 4, pp. 478-500. https://doi.org/10.1108/09513570210440568

Copyright © 2002, MCB UP Limited

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Essay vs. Report

What's the difference.

Essays and reports are both forms of academic writing that serve different purposes. An essay is a piece of writing that presents an argument or a point of view on a specific topic. It is typically more subjective and allows the writer to express their thoughts and opinions. On the other hand, a report is a structured document that provides information on a particular subject. It is usually more objective and focuses on presenting facts and findings. While both essays and reports require research and analysis, essays tend to be more flexible in terms of structure and content, while reports follow a more rigid format with headings and subheadings.

Further Detail

Introduction.

When it comes to academic writing, two common forms that students often encounter are essays and reports. While both serve the purpose of conveying information, they have distinct characteristics that set them apart. In this article, we will explore the attributes of essays and reports, highlighting their differences and similarities.

One of the primary distinctions between essays and reports lies in their structure. Essays typically follow a more flexible structure, allowing for a greater degree of creativity and personal expression. They often consist of an introduction, body paragraphs, and a conclusion. The body paragraphs present arguments or ideas supported by evidence and analysis.

On the other hand, reports tend to have a more rigid structure. They usually include sections such as an introduction, methodology, findings, and conclusion. Reports are often written in a more objective and formal tone, focusing on presenting factual information rather than personal opinions.

Furthermore, essays often require a thesis statement, which serves as the central argument or main idea of the paper. Reports, on the other hand, may not necessarily have a thesis statement but instead focus on presenting data or findings in a clear and organized manner.

While both essays and reports aim to convey information, they have different purposes. Essays are commonly used to explore and analyze a topic, allowing the writer to present their own ideas and arguments. They often require critical thinking and the ability to construct a coherent and persuasive argument.

Reports, on the other hand, are typically used to present factual information or findings from research or investigations. They are often more objective in nature and focus on providing a comprehensive overview of a particular subject. Reports may be used to inform decision-making, document experiments, or present research findings to a wider audience.

Language and Style

The language and style used in essays and reports also differ. Essays often allow for a more personal and subjective writing style, where the writer can express their thoughts and opinions. The language used in essays can be more creative and engaging, with the use of rhetorical devices and persuasive techniques to captivate the reader.

Reports, on the other hand, require a more formal and objective writing style. The language used in reports is typically straightforward and concise, focusing on presenting information in a clear and logical manner. Reports often avoid the use of personal pronouns and instead rely on passive voice constructions to maintain an objective tone.

Research and Referencing

Both essays and reports may require research and referencing, but the extent and approach can vary. Essays often involve extensive research to support the writer's arguments or claims. They may require the use of various sources, such as books, scholarly articles, or online resources. Referencing in essays is crucial to acknowledge the sources used and provide credibility to the arguments presented.

Reports, on the other hand, may also require research, but the focus is often on presenting factual information rather than analyzing or interpreting it. Reports may rely more heavily on primary research, such as surveys or experiments, to gather data. Referencing in reports is essential to provide transparency and allow readers to access the sources of the presented information.

In conclusion, while essays and reports share the goal of conveying information, they have distinct attributes that set them apart. Essays offer more flexibility in structure and allow for personal expression, while reports follow a more rigid structure and focus on presenting factual information. The purpose, language, and style used in essays and reports also differ, with essays often being more subjective and persuasive, while reports maintain a formal and objective tone. Understanding the differences between essays and reports is crucial for students to excel in their academic writing and effectively communicate their ideas and findings.

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annual report

Definition of annual report

Examples of annual report in a sentence.

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'annual report.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

1724, in the meaning defined above

Dictionary Entries Near annual report

annual rent

annual ring

Cite this Entry

“Annual report.” Merriam-Webster.com Dictionary , Merriam-Webster, https://www.merriam-webster.com/dictionary/annual%20report. Accessed 6 Sep. 2024.

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What Is a White Paper?

Purpose of a white paper, how to write a white paper, the bottom line.

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White Paper: Types, Purpose, and How to Write One

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South Carolina, where he launched his own financial advisory firm in 2018. Thomas' experience gives him expertise in a variety of areas including investments, retirement, insurance, and financial planning.

Investopedia / Michela Buttignol

A white paper is an informational document issued by a company or not-for-profit organization to promote or highlight the features of a solution, product, or service that it offers or plans to offer.

White papers are also used as a method of presenting government policies and legislation and gauging public opinion.

Key Takeaways

• A white paper promotes a certain product, service, or methodology to influence current and prospective customer or investor decisions.
• Three main types of white papers include backgrounders, numbered lists, and problem/solution white papers.
• A white paper provides persuasive and factual evidence that a particular offering is a superior product or method of solving a problem.
• White papers are commonly designed for business-to-business (B2B) marketing purposes between a manufacturer and a wholesaler, or between a wholesaler and a retailer.

White papers are sales and marketing documents used to entice or persuade potential customers to learn more about a particular product, service, technology, or methodology.

White papers are commonly designed for business-to-business (B2B) marketing purposes between a manufacturer and a wholesaler , or between a wholesaler and a retailer. It can provide an in-depth report or guide about a specific product or topic and is meant to educate its readers.

The facts presented in white papers are often backed by research and statistics from reliable sources and can include charts, graphs, tables, and other ways of visualizing data. A white paper can communicate an organization’s philosophy or present research findings related to an industry.

Types of White Papers

A startup , large corporation, or government agency will use white papers differently. There are three main types of white papers: backgrounders, numbered lists, and problem/solution white papers.

Backgrounders detail the technical features of a new product or service. Designed to simplify complicated technical information, they are used to:

• Support a technical evaluation
• Launch a product
• Promote a product or industry leader

Numbered lists highlight the key takeaways of a new product or service, and are often formatted with headings and bullet points such as the following familiar format:

• 3 Questions to Ask
• 5 Things You Need to Know

Problem/solution papers identify specific problems faced by potential customers and suggest a data-driven argument about how a featured product or service provides a solution to:

• Generate new sales
• Educate salespeople on product characteristics
• Build industry interest

White papers differ from other marketing materials, such as brochures. Brochures and traditional marketing materials might be flashy and obvious, but a white paper is intended to provide persuasive and factual evidence that solves a problem or challenge.

White papers are commonly at least 2,500 words in length and written in an academic style.

A white paper should provide well-researched information that is not found with a simple Internet search and has a compelling narrative to keep the reader’s attention. The author of a white paper should:

• Research and fully define the topic
• Create an accurate outline of information
• Write an attention-grabbing introduction
• Format the paper for easy reading
• Revise and proofread

What Is an Example of a White Paper?

All of the documents listed below, publicly available on Microsoft’s website, focus on aspects of the company’s suite of cloud services. In contrast with brochures, these white papers don’t have a clear sales pitch. Instead, they dive into relevant topics, such as cloud security, hybrid clouds, and the economic benefits of adopting cloud computing.

• Digital Transformation and the Art of the Possible
• Harvard Business Review Analytic Services: Drive Agility and Innovation with ERP in the Cloud
• IDC: The Business Value of Migrating and Modernizing with Azure

How Have New Industries Used White Papers?

Cryptocurrencies have also been known to publish white papers during initial coin offerings (ICOs) and frequently issued white papers to entice users and “investors” to their projects.

Bitcoin famously launched a few months after the pseudonymous Satoshi Nakamoto issued its famous white paper online in October 2008.

Why Is It Called a White Paper?

White papers may have developed from the use of “Blue Papers” in 19th century Britain, where a Parliament report cover was blue. When a topic for the government was less serious, the blue cover was discarded and published with white covers. These reports were called White Papers. In the United States, the use of government white papers often means a background report or guidance on a specific issue.

A white paper is an informational document issued by a company, government agency, or not-for-profit organization to promote the features of a solution, product, or service that it offers or plans to offer. The facts presented in white papers are often backed by research and statistics from reliable sources and are commonly written in one of three formats: backgrounders, numbered lists, and problem/solution papers.

Bitcoin.org. " Bitcoin: A Peer-to-Peer Electronic Cash System ."

Michigan State University. " Finding British Parliamentary Papers in the M.S.U. Libraries, Collections Guide No. 6 (Advanced): Parliamentary, or Sessional Papers--Discussion ."

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