Financial statements act like a business’s progress report, highlighting its financial standing over a set period.
Each financial statement plays its role, showing what a company owns, what it owes, how much money it’s making, and how effectively it’s managing its cash.
For business owners, these statements guide decisions on everything from budgeting to investments and expansions. Investors and lenders also rely on financial statements to decide whether to invest in or lend to a company, as they need to know if the business is profitable and financially stable.