Financial reports are formal records of the financial activities and position of a business or entity.
Financial reporting provides a snapshot of a business’ financial health, giving insight into its performance, operations, and cash flow. Financial reports are essential since they provide information about the business’ revenue, expenses, profitability, and debt.
Financial statements can be official reports like a balance sheet or statement of financial position, reports on a company's assets, liabilities, and owners equity at a given point in time.
Income statement - representing the revenues, expenses, and profits/losses generated during the reporting period.
Balance sheet - financial statement which includes assets, liabilities, equity capital, total debt at a point in time.
Cash flow statements - financial statements telling you how much cash you have on hand for a specific period.
Statement of retained earnings - financial statement that provides an overview of the changes in a business’ retained earnings during a specific accounting cycle or reporting period.