A financial statement for a business is a formal record of its financial activities and position over a specific period. It provides a snapshot of how the business is performing and typically includes the balance sheet (showing assets, liabilities, and equity), income statement (profit and loss), and cash flow statement (movement of cash in and out). These documents help business owners, investors, lenders, and regulators assess the company’s profitability, financial health, and operational efficiency. Accurate financial statements are essential for decision-making, securing financing, filing taxes, and ensuring compliance with legal and accounting standards. They are usually prepared regularly—monthly, quarterly, or annually.