The financial year has ended and a new one just began. For the year that ended you’re now obliged to present an Annual Report. Be the deadline 6 months or 8, depending on your local requirements even shorter or longer, matter of fact still is that you need to prepare it. 

Having two of your main statements – balance sheet and income statement – ready as you’ve entered all the entries relating to the last year, you’re ready to start working on the other two statements – statement of cash flows and statement of changes in owner’s equity. Those two are always prepared based on the first two and collectively the four comprise the four main statements within the Annual Report. Remember that everything in the report will revolve around the four main statements, which tell the story of how your company’s financial year went. They tell the story in numbers though meaning you need to add a bit of extra text to give details behind the numbers. Why did your loan balances increase notably or how come you’re having zero stock compared to last year’s considerable balance? Questions are raised and they should be answered to the readers of the report – the questions are answered in notes to the main statements, which again comprise a compulsory and an important part of the report.

Something you’re probably “dragging” along from year to year are the accounting policies so there’s very little to be updated there. With the statements, the notes and now the policies set you’re just stuck with updating the dates, the numbers and setting the framework for the report – you’re ready to prepare your Annual Report.

How to accomplish something that sounds so easy and yet as we know, time consuming? You make time for it; you plan for it and make a list of actions you need to take. If need be, make a project out of it with post-its and flipcharts – whatever makes your life easier is helping you. Never forget the deadline and make sure you’re safely within the timeframe given by regulators for the preparation.