A publicly traded company must provide an earnings announcement on a quarterly or annual basis depending on the charter location for the company. US-based companies must provide earnings announcement information on a quarterly basis. This is so that shareholders can judge the growth of the company’s earnings and decide if they still want to remain shareholders. An earnings announcement is also a key tool to attract new investors to your company.

Hiring an investor relation consultant can help with producing an earnings announcement. Some companies are large enough where they can handle the earnings announcement process in-house. However, for smaller companies, outsourcing to an earnings announcement consultant may be a better option. Before you hire a consultant or assemble the internal resources, there are a few items to consider:

1. Contact regulatory agencies and other associations about the earnings announcement process.

2. Hire an earnings announcement consultant.

3. Conduct an audit to compile earnings announcement report.

Action Steps
The best contacts and resources to help you get it done

Speak to a consultant about earnings announcement training and advice

Whether you choose to outsource or use your in-house financial staff for the earnings announcement release, it is imperative to understand all the requirements that the process entails.

I recommend: Call or contact the Securities and Exchange Commission to make sure you understand the regulations surrounding the earnings announcement. Investigate the credentials of any investor relations consultant by contacting the National Investor Relations Institute.

Employ the services of an earnings announcement consultant

If you decide that investor communications is not something you can conduct on your own, hiring a consultant is the prudent tact to employ. Not only can these companies help you compile and disseminate an earnings announcement but most also offer a host of other services.

I recommend: Communicate with a consultant at the Financial Relations Board for more information on their investor relation services. Fill out and submit the contact information form from The Investor Relations Company.

Perform an audit to determine earnings announcement information

Now your company must determine the actual earnings figure to announce. An audit is where these financial figures originate. Most investor relations companies can assist you with this process even if they do not have their own auditors. However, if your company chooses to conduct its own announcement, there are independent audit consulting firms that can help with earnings announcement process.

I recommend: Speak to a representative at the Institute of Internal Auditors to locate an auditor in your area. If you decide to conduct the audit with your existing staff, it is prudent to send those employees to auditor training available at the International Register of Certificated Auditors.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure that if you hire an investor relation firm to help with the earnings announcement, the firm understands your company's corporate culture and is easy to work with. Hiring a firm that you can't work together with is not a good idea and can damage the lines of communication with your shareholders.