Overview with tools, template, software, best practices and alternatives

What is Reporting To Shareholders?

A shareholder is an individual or institution that officially owns a share of stock in a private or public corporation. Owners of a limited company are called shareholders. They purchase shares that embody their partial ownership of a company.

Reporting to shareholders is the process of providing information and updates to these part-owners of the company. Such reports help them become updated and aware about the status and progress of their shares in a particular company.

Who does Reporting To Shareholders?

Providing reports and updates to shareholders is a task of the members and leaders of the business team. This is to keep the shareholders informed about the standing and development of the team, the business, and their shares. The company secretary may be delegated to compile the reports of other members for data organization.

Why do people do Reporting To Shareholders?

Business teams report to shareholders for the following reasons.

Communication is the primary reason why teams do reporting to shareholders. Team members have to report the performance of the company to the part-owners, as the company has the chance to gain profit if the company has a good performance. However, the company will lose profit if the company has a poor performance.

Since reporting to shareholders allows team members and leaders to give essential information about the team’s status and progress, they and the shareholders will be able to compare past and present information and analyze them to yield strong connections, inferences, conclusions, and decisions.

How to do Reporting To Shareholders / Ways to do Reporting To Shareholders

Reporting to shareholders involves the provision of significant details on the undertakings, routines, standing, and development of the business team and the project itself.

In doing a report to shareholders, the members and leaders of the team should include complete and accurate information about the performance of the team and the organization, along with the team’s achievements, issues, and future plans. In line with this information, the team may also include information about their strengths, weaknesses, and open opportunities.

Aside from the aforementioned information, reporting to shareholders also presents new or corrected information from the previous report. These bits of information can be pivotal factors that can influence the future plans, strategies, and actions of the team in doing the business. Also, it is important to include details on the trend of the shares secured by the part-owners, as these will describe the rise and fall of shares.

Advantages of Reporting To Shareholders

Reporting to shareholders is beneficial to the business team for the following reasons.

First is communication. Reports to shareholders enable the team members and leaders to communication various matters to the company part-owners. These are important information, such as the team’s achievements, plans, strategies, activities, and threats. Reporting allows easy and fast sending and receiving of information to and from other members of the team.

With complete, accurate, factual, and organized details in the report, the shareholders, along with the members and leaders of the team, will be able to analyze trends in the shares they bought from the company. This allows them to make significant inferences and conclusions, along with decisions if they want to pursue their partnership with their affiliated company.

Disadvantages of Reporting To Shareholders

While reporting to shareholders can be beneficial in several ways, there are also instances in which it can be disadvantageous to the business team.

Doing reports to shareholders can be tedious and time-consuming, as the report should contain complete and accurate details. Instead of focusing on their regular tasks and responsibilities in the team, team members and leaders may become pre-occupied with writing the report, which reduces their time in accomplishing their daily tasks.

Reporting to shareholders online can be an easy and fast approach in delivering important information and updates to the part-owners of the company, as well as to other members and leaders of the team. With the power of the internet, people will be able to view new or additional information coming from other members of the team. The pitfall is that poor and loss of stable internet connection will disable members, leaders, and affiliates from sending and receiving information.

Best Practices for doing Reporting To Shareholders

Reporting to shareholders helps the team members, leaders, and affiliates to become entirely knowledgeable, updated, and wary on the standing and development of the team and the business project itself.

Shares involve numbers and figures, which means quantitative data. In doing reports to shareholders, team leaders, members, and affiliates can use data presentation tools, such as tables, graphs, charts, and diagrams. Data will be better presented using them, unlike the narrative approach, which uses paragraphs to present qualitative or descriptive data.

Reports to shareholders should utilize a form of language that can be understood by the members of the team. The use of acronyms and jargons should be avoided or limited as they can be misinterpreted by the readers of the report, especially the acronyms, which may have multiple meanings. If the team should use acronyms and technical words in the report, a glossary can be included, where the jargons and acronyms can be defined.

Organization is important in the report as this enables the readers to fully easily read, comprehend, and process information written in the report. This can be done by using headings and subheadings, which can guide the readers of the report, along with the use bullets to list down information more efficiently. Also, the team can write important information in bold so as to help readers locate salient points in the reports.

How Teamreporter helps at doing Reporting To Shareholders

Teamreporter is an application that is used to reduce the number of status meetings of the team. It uses scheduled report mails as substitute to the status meetings. Teams with up to four members can use the application freely and one can set up an account in just less than one minute.

Teamreporter is flexible that members can adjust the questions and schedule of the report mails in its interface. In addition, team members and leaders can also modify the list of members who will send and receive the updates. Moreover, the application can be used with a web browser or e-mail, along with other existing applications used by the team.

The interface of Teamreporter is automated and user-friendly, enabling its users to send and receive information and updates to and from other members of the team easily and swiftly. Teamreporter sends them e-mail notifications, which asks them to send important information, such as their achievements, problems, and plans. Based on their responses, Teamreporter will generate a summary, which will be sent to the team the following day.

Team leaders can get a clear oversight of the team, the business, and the shares with Teamreporter. They will also be able to use Teamreporter’s information in evaluating a team and its members and determine the members who perform well and those who need further assistance. Furthermore, team leaders can also use the data from the application when they make their reports or training modules.

Alternatives to Reporting To Shareholders

While reporting to shareholders can be supportive to the business team, there are other alternatives that the business team can consider when doing business reports.

One alternative is the use of e-mail updates and reports, as these allow team members to become knowledgeable about the status and development of the shares, the group, and the organization. With the power of a stable internet, team members and leaders will be able to send and receive information and updates to and from other members of the team with just one click. However, the problem is that the team will not be able to send and receive updates if the internet connection is absent or poor.

Another option the team can do is to conduct status meetings. Doing status meetings is a quick way to discuss important matters about the team and the project itself. Team members and leaders can invite shareholders for a meeting to talk about salient information on the shares’ status and development. Along with this information, the team can also impart what they already know about the team’s undertakings, issues, and future plans.

Learn more about Teamreporter

Teamreporter is free for small teams (up to 4 members)