Everything You Need to Know About Small Business Annual Reports

A small business annual report is intended to notify the state in which your company works about your firm’s assets and revenue in a given year.

A small business annual report is intended to notify the state in which your company works about your firm’s assets and revenue in a given year. Failure to submit this report may result in your inability to do business in several states.

What Exactly Are Annual Reports?

Annual reports are records that most businesses must submit on an annual basis in order for the state where the company is created to have up-to-date information about the firm. A statement of information is another name for an annual report.

For example, in your yearly report, you may include:

Your registered agent’s contact information.

Information about your business officials or board of directors.

The location of your company.

When completing your annual report, you will usually be required to pay a filing fee. The only states that do not need an annual report are Alabama and Ohio.

Due Date for Annual Report

You should be able to discover a variety of information regarding your annual report, including when it is due, on the company filing website managed by your state. Many states require you to submit this report every year. Other states have filing obligations on a regular basis. For instance, you may be required to submit your report every two years (biennial) or even every ten years.

Your annual report’s due date will be determined by the state in where you started your firm. For example, you may be required to submit your annual report on the anniversary of the day your company was created or incorporated. In other states, you must submit your yearly report with your annual tax return. Filing at the end of the calendar year may be the due date in your state. To find out when your report is due, contact your Secretary of State.

submitting an initial report

If you’ve founded a corporation or limited liability business, you may be required to file an initial report. This report is submitted shortly after your business is created, and it contains the same information as your annual report.

You must submit an initial report if you incorporate an LLC or company in one of the following states:

California

Connecticut

Georgia

Louisiana

Missouri

Nevada

State of New Mexico

Washington

What Should Your Annual Report Contain?

The goal of states that require an annual report is to update information about your firm. In addition to these governmental reports, firms must prepare a report for distribution to present and potential investors so that they may assess the company’s financial performance.

Even though they are not compelled to submit the report to investors, small firms might benefit from preparing a small company annual report. A corporation’s annual report often contains a range of financial statistics about the company:

A report by the Chief Executive Officer (CEO).

A cash flow statement that compares the current year’s finances to the prior year’s.

A balance sheet for a business.

A report by a certified public accountant.

Typically, an annual financial report would begin with some background information on the firm and a few highlights of the year’s performance. Following this initial information, corporate management will add a statement informing shareholders of some of the most significant events of the previous year as well as the firm’s goals for the next year.

You might use this document to inspire your staff if you’re creating a report for a small firm. Most annual reports will include three financial statements that are connected yet give a distinct perspective on the company’s economic status.

The first of these financial reports is the balance sheet. Your balance sheet compares numerous concerns, including your assets, equity, and liabilities, to evaluate your company’s financial status. A balance sheet is essentially a snapshot of your company’s present financial situation.

The financial statement is the second financial report, and it compares how much money your firm generated in the previous year to how much it spent.

Finally, your report will have a cash flow statement. This statement reveals the liquid cash generated and spent by your firm in the past years. Your yearly report might include a variety of additional themes. For example, you would typically be required to include a report from an auditor that confirms the financial facts in your annual report. You may also wish to outline your company’s accounting rules.