Financial statements are the official documents used to provide an overview of a company’s financial position at any given point in time. They are essential tools for investors, creditors and other stakeholders to understand a company’s financial health and performance. Essentially, they provide a window into the current state of a company’s finances – including what money is coming in, going out, and how much cash is available. Financial statements also show whether a company has enough money to cover its costs and liabilities over the long term. By using financial statements to analyze a company’s assets, liabilities and profitability, stakeholders can make informed decisions about whether or not to invest.