The importance of the Annual Report

Feb 21, 2025

The annual report is an essential tool for any company, regardless of its size or area of operation. It is not only a regulatory obligation, but also a strategic instrument for transparency, credibility and decision-making.

1. transparency and accountability

This document allows shareholders, investors and other stakeholders to understand the company's financial situation. Clear financial statements convey confidence and contribute to the organisation's reputation.

2. Legal and Regulatory Compliance

Drawing up the annual report guarantees compliance with the rules and regulations of the different economic sectors; non-compliance can lead to penalties, but above all impact the company's credibility.

3. Strategic decision-making

Analysing company accounts helps managers assess business performance, identify trends and plan future actions based on concrete data.

4. Attracting Investment

Investors analyse financial reports to decide where to invest. A well-structured, clear and transparent report is an excellent tool for attracting new investments.

5. Continuous Improvement

The annual review of results allows companies to identify areas for improvement, optimise processes and set objective goals for the future.

In short, the annual report and accounts should not just be seen as a formal or legally binding document, but as an essential guide to the company's sustainability and growth.

At Fénix Horizonte, we help companies build and prepare their Annual Report, including the notes to the financial statements. Don't hesitate to contact us for more information.