Financial statement purpose is the overall goal of a company’s financial documents. These documents provide valuable information to investors and stakeholders about an organization’s performance and are essential for making strategic decisions. By understanding the purpose of such statements, it is possible to better comprehend the significance of metrics like revenue, expenses, profits, and losses. In simplest terms, the purpose of financial statements revolves around providing a comprehensive picture of a company’s finances and allowing its readers to make informed decisions. They are a fundamental building block of good business practice.