Financial statements are formal records of a company’s financial activities and position, typically including the balance sheet, income statement, and cash flow statement. They provide a snapshot of a company’s financial health, allowing owners, investors, and creditors to make informed decisions.

In Ontario, financial statements are critical for meeting regulatory requirements, securing loans, and attracting investors. They also help businesses assess profitability, identify inefficiencies, and plan for future growth. For corporations, financial statements are often required for tax filings and must adhere to Canadian Accounting Standards for Private Enterprises (ASPE) or International Financial Reporting Standards (IFRS).