How a company runs its business can be seen in its annual report. Therefore, it is obliged to prepare company or corporate annual report as best as possible, including by using experienced annual report writers or vendors.
According to Article 1 paragraph 1 of Otoritas Jasa Keuangan (OJK) Regulation Number 29/POJK.04/2016 about annual reports of issuers or public companies, annual report is a report on the accountability of the board of directors and board of commissioners in the management and supervision of issuers or public companies within a period of one financial year to the general meeting of Shareholders which is prepared based on the provisions in OJK Regulations.
In simpler terms, a company annual report is a summary of a company’s activities, developments, and achievements within a one-year period. It also includes an analysis of the company’s latest financial condition and future plans.
Function and Importance of Corporate Annual Report
The function of the Annual report is not merely to fulfill OJK’s obligations. More importantly, annual reports can provide information to external parties regarding the company’s actual financial condition. External parties include consumers, investors, and creditors.
The corporate annual report not only contains financial reports but also explains the company’s advantages and plans for the future. Companies can show the latest products and innovations, as well as the business opportunities they are pursuing in the future.
Thus, the annual report also functions as a marketing tool and depicts a good image for the company. Annual reports are a powerful tool for companies to tell who they are.
What does a proper Annual Report look like?
Convincing external parties about the company’s achievements through a report is not a simple matter. According to Annualreport.id, there are several things that an annual report must have in order to meet these criteria:
Not only does it present the latest information about the company, the annual report must be accurate in writing sentences or mentioning names. The slightest mistake will make the company seem amateurish.
It is not a problem if a company wants to be efficient by making an annual report in-house. However, if it feels that the human resources are not competent in writing, the risk should not be taken. It is better to use the services of a professional annual report writer or vendor, such as Wordsmith Group for example.
- Balanced Content
Company annual report must be able to present factual data, but not dull. There are things that can be done, such as cover design, layout, or choosing attractive fonts.
- Simplifying Data
A proper annual report must be able to break down complex data into simpler ones that are easy for people to understand. Annual reports must be made from the perspective of people who don’t really like reading something heavy.
Things above are not much different, according to Gracia Wiroreno, a professional Annual Report writer who has often worked with the Wordsmith Group. “A good and correct annual report must follow the latest OJK regulations, not be long-winded, and provide information in accordance with what the company requested,” she explained to the Wordsmith Group.
Who can write an annual report?
An annual report is very complex to write because it involves a lot of data, but on the other hand, it must also be readable by all readers. Therefore, an annual report cannot be written by just anyone but requires a writer who has specific skills and experience.
“Annual report writers must have experience writing for companies, have good writing skills, and be able to process data provided by the team from the relevant company into easy-to-read writing,” said Gracia. “If it is not written by a writer who is capable of processing data, the contents of the annual report could be messy and not in accordance with OJK regulations. Annual report writers must also be able to read and understand financial reports, and have a good understanding of time management because this is a huge amount of work that takes a long time.”
After reading the explanation above about the importance of the annual report for the company’s image and business continuity, it is best not to take risks in making it. Trust professional annual report writers or vendors such as Wordsmith Group who have an experienced team in working on company annual report and sustainability reports for various large companies in Indonesia.