Why do a financial check-in?
A company's financial position tells investors about its general well-being. A financial analysis of a company's financial statements—along with the footnotes in the annual report—is essential for any serious investor seeking to understand and value a company properly.
Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. Financial statements include:
-Balance sheet
-Income statement
-Cash flow statement
It is wise to stay on top of these statements and your monthly bookkeeping so that you have everything organized not only for taxes but in the case you were to be audited.