A type of report or record of a formal type is called a financial statement or accounting statement that companies, people and entities usually use, to keep track of the different economic activities that they carry out, in addition to the different modifications that in a period determined can present.

Financial statements are often used by partners, owners, and creditors to keep up with the performance of their company and the economic situation it is in.

For the information contained in an accounting statement to be considered correct and truthful, it must comply with certain parameters, such as, for example, it must be reliable, which means that it must be prudent and neutral. What is reflected in the document must be easy to understand for anyone, the use of notes can be implemented if necessary, in order to make it easier to understand complex issues. The structure must follow the accounting standards, so that in this way the information can be compared with different periods and organizations.

Financial statements may be required by the State, among the most commonly required are the following:

• Cash flow statement: this is responsible for providing the necessary information regarding the cash movements of the organization or company within a given economy or market, it can also indicate the expenses, income and funds available to date.
• Balance sheet or balance sheet: provides clear information on a certain period of time, about the assets, liabilities and equity that an organization, person or company owns, within the period in which the balance sheet was made. Typically, the balance sheet is done once a year.
• Statement of equity change: shows every detail regarding the contributions made by the partners, the use of the profits obtained in previous periods and the distribution of the same, that is, it separately indicates the equity of the organizations or people.
• Income statement: indicates in a detailed and orderly manner how the income, gains, expenses and losses of an institution were acquired in a given period of time, it includes transient and nominal accounts.
• N otes of the financial statements: they are those that are responsible for explaining information of a relevant nature, which may be difficult to understand and interpret.