Financial reports are documents that provide information about the financial performance and position of a business or organization. Some examples of financial reports include:
- Income statement: A report that shows a business’s revenue, expenses, and net income over a specific period of time.
- Balance sheet: A report that shows a business’s assets, liabilities, and equity at a specific point in time.
- Cash flow statement: A report that shows the inflows and outflows of cash for a business over a specific period of time.
- Statement of changes in equity: A report that shows the changes in a business’s equity over a specific period of time.
- Statement of cash flows: A report that shows the movement of cash into and out of a business over a specific period of time.
Financial reports may also include additional information, such as financial ratios and metrics, trend analysis, and management’s discussion and analysis. Financial reports are used by business owners, investors, lenders, and other stakeholders to evaluate the financial performance and health of a business.