The most recent audited financial statements and most recent reviewed quarterly financial statements are required in prospectuses, when looking to invest. The period of an enterprise’s existence is divided into accounting periods, and financial statements are prepared for each accounting period. For every business, there are three important financial statements you must look at; the Balance Sheet, the Income Statement, and the Cash Flow Statement.

Personal financial statements are the roadmap that guides us from where we are today, to where we want to be tomorrow. Accounting and financial statements are the scorecard of business. Financial statements are essential in evaluating an entity’s performance and debt paying ability. Financial statements are usually compiled on a quarterly and annual basis.