Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. Financial statements include:

Balance sheet - The balance sheet provides an overview of assets, liabilities, and stockholders' equity as a snapshot in time.

Income statement - The income statement primarily focuses on a company’s revenues and expenses during a particular period. Once expenses are subtracted from revenues, the statement produces a company's profit figure called net income.

Cash flow statement - The cash flow statement (CFS) measures how well a company generates cash to pay its debt obligations, fund its operating expenses, and fund investments.

Accounting refers to the process of keeping financial records pertaining to the business. It involves the process of recording, summarizing, analyzing and reporting all the transactions.

Accounting services for business is one of the key functions of all businesses. This key function is handled by an accountant in a small firm, or by a finance department with dozens of employees at larger companies. The reports generated by various streams of accounting are useful for business decisions. These reports give detailed information about the financial status of the business.

Investors and financial analysts rely on financial data to analyze the performance of a company and make predictions about its future direction of the company's stock price. One of the most important resources of reliable and audited financial data is the annual report, which contains the firm's financial statements.

The financial statements are used by investors, market analysts, and creditors to evaluate a company's financial health and earnings potential. The three major financial statement reports are the balance sheet, income statement, and statement of cash flows. The balance sheet provides an overview of a company's assets, liabilities, and stockholders' equity as a snapshot in time. The date at the top of the balance sheet tells we when the snapshot was taken, which is generally the end of the fiscal year.

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