And create a report sheet for new year too (and maybe some other too, as you find that you need some additional reports)! And then after a year again new sheets etc.

Really you need a sheet ProjectSteps to enter most of info (sheet Projects is needed for data entry only when you register a new project - and when you close an ended one). Instead of designing a new report every year (Btw, the sheet Projects serves really also as a report), you design reports where you select year/date and maybe some other conditions, and a report for those conditions is displayed (a single sheet for 1 kind of report). And when the number of registered project steps grows too much and as result the workbook will slow down (it depends on your computer, but unless you have really crappy one some 20000 rows must work OK), you archive the workbook with different name, clear old data (or too old data), and continue with same workbook. You need to redesign the workbook only, when you want to add some new functionality to it.

An additional bonus for such design is, that it allows to handle projects, which take several years of work.